diff --git a/database/factories/UserFactory.php b/database/factories/UserFactory.php
index a41813d210..03bc193329 100644
--- a/database/factories/UserFactory.php
+++ b/database/factories/UserFactory.php
@@ -246,11 +246,6 @@ class UserFactory extends Factory
         return $this->appendPermission(['components.view' => '1']);
     }
 
-    public function createCompanies()
-    {
-        return $this->appendPermission(['companies.create' => '1']);
-    }
-
     public function createComponents()
     {
         return $this->appendPermission(['components.create' => '1']);
@@ -276,6 +271,16 @@ class UserFactory extends Factory
         return $this->appendPermission(['components.checkout' => '1']);
     }
 
+    public function createCompanies()
+    {
+        return $this->appendPermission(['companies.create' => '1']);
+    }
+
+    public function deleteCompanies()
+    {
+        return $this->appendPermission(['companies.delete' => '1']);
+    }
+
     public function viewUsers()
     {
         return $this->appendPermission(['users.view' => '1']);
diff --git a/tests/Feature/Companies/Api/DeleteCompaniesTest.php b/tests/Feature/Companies/Api/DeleteCompaniesTest.php
new file mode 100644
index 0000000000..7b3224c987
--- /dev/null
+++ b/tests/Feature/Companies/Api/DeleteCompaniesTest.php
@@ -0,0 +1,49 @@
+<?php
+
+namespace Tests\Feature\Companies\Api;
+
+use App\Models\Asset;
+use App\Models\Company;
+use App\Models\User;
+use Tests\Concerns\TestsPermissionsRequirement;
+use Tests\TestCase;
+
+class DeleteCompaniesTest extends TestCase implements TestsPermissionsRequirement
+{
+    public function testRequiresPermission()
+    {
+        $company = Company::factory()->create();
+
+        $this->actingAsForApi(User::factory()->create())
+            ->deleteJson(route('api.companies.destroy', $company))
+            ->assertForbidden();
+    }
+
+    public function testCanDeleteCompany()
+    {
+        $company = Company::factory()->create();
+
+        $this->actingAsForApi(User::factory()->deleteCompanies()->create())
+            ->deleteJson(route('api.companies.destroy', $company))
+            ->assertStatusMessageIs('success');
+
+        $this->assertDatabaseMissing('companies', ['id' => $company->id]);
+    }
+
+    public function testCannotDeleteCompanyThatHasAssociatedItems()
+    {
+        $companyWithAssets = Company::factory()->hasAssets()->create();
+        $companyWithAccessories = Company::factory()->hasAccessories()->create();
+        $companyWithConsumables = Company::factory()->hasConsumables()->create();
+        $companyWithComponents = Company::factory()->hasComponents()->create();
+        $companyWithUsers = Company::factory()->hasUsers()->create();
+
+        $actor = $this->actingAsForApi(User::factory()->deleteCompanies()->create());
+
+        $actor->deleteJson(route('api.companies.destroy', $companyWithAssets))->assertStatusMessageIs('error');
+        $actor->deleteJson(route('api.companies.destroy', $companyWithAccessories))->assertStatusMessageIs('error');
+        $actor->deleteJson(route('api.companies.destroy', $companyWithConsumables))->assertStatusMessageIs('error');
+        $actor->deleteJson(route('api.companies.destroy', $companyWithComponents))->assertStatusMessageIs('error');
+        $actor->deleteJson(route('api.companies.destroy', $companyWithUsers))->assertStatusMessageIs('error');
+    }
+}