If a company has been dissolved, either by directors voluntarily as per the required process or forcibly for not filing accounts and statutory filings, it is possible to restore the company. The process of company restoration gets the name of the company back on the Companies House register, and it must be done within six years after the company has been dissolved.
Options for company restoration
There are two ways to restore a dissolved company. If the company was forcibly removed from the Company House register owing to not filing of accounts, administrative registration is the option that directors can exercise. In case the directors had voluntarily dissolved a company, restoration must be done by a court order.
Overview of administrative restoration
When a company has been removed from Companies House register owing to not filing of statements and accounts, directors can opt for administrative restoration. For the same, the administrative restoration form fee of £100 must be paid, with all other dues and penalties, and required papers must be submitted. In case the company had assets at the time of dissolvement, a waiver letter must be obtained from Bona Vacantia.
The option of administrative restoration is only available, if
- The person applying for administrative restoration is a director or shareholder of the company.
- The company name was struck off from the register within last 6 years
- The company was continuing trade at the time of dissolution
To sum up things, administrative restoration is not a choice, unless the company was forcibly removed.
Overview of court restoration order
In case a company has dissolved by the directors and shareholders voluntarily, a court is required for company restoration. An application must be submitted, which can cost between £500 and £800, with additional expenses. There can be many reasons why directors may choose to restore a company name on the Companies House register, like
- Because directors want to recommence trade. A company that might not be in profits years back may make sense, owing to market conditions and other aspects. In this case, directors can opt for restoration to recommence trade.
- Because an asset must be released. Directors can opt for company restoration to release an asset, provided the company was dissolved in the last six years. The company name, provided all formalities have been completed and dues have been paid, will be placed on the register for a short period.
- Because there are claims against the company. If there are claims against the company, restoration can be an option. However, in some cases, directors can go for a discretionary grant, as opposed to restoration.
How long does it take?
The process of company restoration can take about four months, depending on the procedure, and whether all the formalities have been completed and dues have been paid. Make sure that there are no errors in the procedure.
To know more on how company restoration works and what the procedures and formalities involved in it, contact business rescue experts, who can offer further assistance and guidance.