Closing a business
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- Read about temporary debt relief measures, including changes to Commonwealth bankruptcy laws, to support individuals and businesses facing financial difficulty due to the impacts of the COVID-19 pandemic.
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Whether you are closing your business because you are retiring, or the business is failing, it can be a challenging and emotional experience.
If you are closing your business voluntarily you can allow significant time to plan your closure. This helps you to close efficiently, meet your legal obligations, save money and, ideally, take away maximum profits.
You may consider closing your business if it is failing and you are finding it hard to sell. In this case, selling some or all of your business assets, paying off your debts and keeping whatever remains might be your best option.
If your business cannot manage its debts you may be forced to close down by becoming bankrupt (sole trader) or insolvent (company). This is a last resort and you should seek expert advice to see if you can avoid it, as there are serious consequences.
The following guide explains how to close your business and the legal requirements involved.