There’s a lot to think about and rules to follow when getting ready to close a business. Follow the steps on this page to help make it more straightforward.
Business debt hibernation is a new scheme for companies, trusts and other entities affected by COVID-19 to manage existing debts until they can start trading normally again. Find out if it’s a good option for your business and how to get started.
What you have to do largely depends on your business structure, whether you are registered for GST, and whether you have employees. This Inland Revenue video on closing down your business is a good starting point.
There’s less incentive to make repayments if you’re no longer in business.
When shutting down a company:
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:
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
This applies to all business types — companies, sole traders and partnerships. See Keeping tax records for tips and advice.
When stopping work as a sole trader:
Cancelling your GST registration (external link) — Inland Revenue
When you leave or dissolve a business partnership:
Talk to Inland Revenue or an accountant about rules for leaving a partnership, particularly if the partnership will continue after your departure.