A company can be dissolved, and its name can be removed from Companies House register for varied reasons. The company may have been voluntarily dissolved, or it might have faced the consequences of not filing the required statutory filings/accounts. It is possible to restore a company that has been dissolved, through the process of restoration. Here’s what directors need to know about company restoration.
If the company was removed from Companies House register forcibly, directors have the choice of applying for administrative registration. In case of voluntary dissolvement, it is important to obtain a court order for company restoration.
Understanding administrative restoration
As mentioned, if the company name was struck off from the register owing to not filing accounts, the choice is to go for administrative restoration. Directors need to contact Companies House for the same to complete the administrative restoration form. The form must be submitted with all the statements and other outstanding details related to company accounts. All fees and dues for penalties must be paid, with £100 for the form. In case the company had assets at that point, it is important to contact Bona Vacantia to get a waiver letter, to complete the application.
One can only apply for administrative restoration application or company restoration, if
- The person was a director or a shareholder of the concerned company
- The company name was struck off from Companies House register within last six years.
- The company was continuing trade until it was dissolved.
In short, if the concerned company wasn’t forcibly removed, administrative restoration is not an option.
Understanding court restoration order
If a company has been voluntarily dissolved by the directors/shareholders, a court order is required for restoration. For the same, an application with costs between £500 and £800 is required with additional expenses. There can be many reasons why directors may want to restore a company that has been dissolved, like –
- Directors want to recommence trade. If the market is experiencing boom and directors choose for company restoration, they can pay for the charges and complete the required procedure, which involves submitting confirmation statements.
- Directors may also want to go for company restoration to release an asset. Please note that the choice of company restoration by court order is only applicable if this happened in the last six years. The company will be placed in Companies House for a limited time for releasing the asset.
- Directors want to handle claims. Owing to claims, it might be necessary to restore a dissolved company. Claims can be paid through a discretionary grant in some cases, depending on what the directors prefer.
How long can company restoration take?
Once the due formalities have been completed, a hearing date will be advised. All the accounts, payments, and statements will be checked, and if all works well, the dissolved company can be restored in about four months.
Want to know more on company restoration? Contact business rescue experts to know more on the options, about dealing with forms and other aspects.