A company's Company Status indicates the current lifecycle of the company.
These are the most common statuses that you will see:
- Active - this is an active company on the Companies Register. All is good, and this company is actively trading.
- Active - Proposal to Strike off - this company, while still active, is soon going to be removed from the Companies Register, and will no longer be able to trade. There are many reasons for a company to be 'struck off' the register. It may be because the company has requested to be closed down, or dissolved. Or it maybe because the company hasn't fulfilled its statutory obligations, and is being forced off the Companies Register. This is a warning sign, get suitable assurances from the Company before dealing with them.
- Dissolved - this company has been 'struck off' the register. It can no longer legally trade or represent itself as a Limited Liability Company. Don't sign a contract with the company.
- Liquidation - the company is in the process of being dissolved and closing down. There are a number of types of Liquidation, from Members Voluntary Liquidation (MVL) where the company is voluntary paying off its debts so it can close down cleanly verses Compulsory Liquidation where the company is being forced by the courts to close down and pay off what debts it can. Don't sign a contract with a company in this state.