Ignoring a dormant company long enough doesn't lead nowhere — ASIC can eventually deregister it involuntarily. It's worth understanding what that actually involves, because it's a much worse path than closing properly.
How it's triggered
ASIC can begin involuntary deregistration when a company has failed to pay its annual review fee and associated late fees, has failed to lodge required documents, or is otherwise not conducting business and ASIC has reasonable cause to believe this. ASIC publishes a notice and, if the situation isn't corrected within the notice period, proceeds to deregister the company.
Why it's not a shortcut
Unlike voluntary deregistration, you don't control the timeline — it happens on ASIC's schedule, which can take considerably longer than a proactive Form 6010 application, all while annual review fees and late penalties keep accruing in the meantime. Debts and liabilities don't disappear because the company is eventually deregistered this way; they simply become harder to resolve once the entity no longer exists.
Director exposure doesn't reduce
Directors can remain personally exposed for certain unpaid company liabilities — particularly PAYG withholding and superannuation guarantee amounts via a director penalty notice — regardless of whether the company closes voluntarily or is deregistered involuntarily by ASIC. Involuntary deregistration is not a way to make personal liability disappear.
The better path
If a company is genuinely finished trading, debt-free, and eligible, proactively lodging Form 6010 is faster, cheaper, and puts you in control of the timeline instead of waiting to see what ASIC does. See our guide on voluntary deregistration for the eligibility criteria and process.
This is general information, not legal advice — if your company is already subject to an ASIC notice, get advice on your specific situation promptly.