Closing your business

When shutting down a company:

• File all income tax returns up to when you stop trading and notify Inland Revenue of the closure.
• If registered for GST and/or as an employer with Inland Revenue, file all returns up to the date you stop operating, then deregister — otherwise you’ll have to file nil returns.
• Pay any taxes owed on time to avoid penalties.
• If you have shareholders, talk to an accountant about any tax implications for them.

You’ll also need to apply to be taken off the Companies Register (external link) . But first, check your company details are correct on the register, and make sure your company has:

• stopped trading
• paid all business debts
• distributed all company assets
• checked liabilities, eg rental agreements
• no creditors trying to liquidate it — see Insolvency and involuntary liquidation for details.
• confirmation that Inland Revenue has no objections — see Your obligations with income tax (external link) on Inland Revenue’s website for details.

Removing a company from the Register (external link) — Companies Office

Ceasing to operate a business (external link) — Inland Revenue

Closing down a company (external link)  — Inland Revenue

When stopping work as a sole trader:

• File your tax return at the end of the financial year, even if you stopped operating partway through the year.

• If registered for GST and/or as an employer with Inland Revenue, file all returns up to the date you stop operating, and then deregister — otherwise you’ll have to file nil returns.

• Let your accountant or advisor know that you’ll no longer be self-employed.

Cancelling your GST registration  (external link) — Inland Revenue

When you leave or dissolve a business partnership:

• File a final income tax return for the partnership.
• Show your share of the partnership income or loss in your personal tax return.
• If registered for GST and/or as an employer with Inland Revenue, file all returns up to the date you stop operating.
• Split joint-owned assets (or proceeds from their sale) according to your deed of partnership.

Talk to Inland Revenue or an accountant about rules for leaving a partnership, particularly if the partnership will continue after your departure.