The process of company restoration is basically the attempt to breathe life back into a dissolved company.
If a business has been removed from Companies House, it will most likely have been voluntarily dissolved or struck off, possibly for failing to submit their annual accounts and confirmation statements.
However, depending on who struck off the business and why, it is possible to restore a company after it has been struck off from the register. Read on to learn more about the restoration of a company and how to go about it…
Here’s how to restore your company after it has been struck off:
There are two potential ways to restore a company that has previously been dissolved or struck off.
If your company was forcibly removed from the register, you can apply for administrative registration. If the directors voluntarily dissolved the company but now wish to continue trading, however, you’ll need a company restoration by court order.
You can learn more about the restoration process in this government guide.
How to apply for administrative restoration
When a company has been forcibly struck from the register at Companies House, the shareholders may be owed money by the company and therefore seek to have the business reinstated so they can access these funds.
You can apply for administrative restoration of your company if:
- you were a director or shareholder of the business
- the company was removed from the Companies House register in the last six years
- your company was continuing to trade until the time it was dissolved
- the company was forcibly rather than voluntarily struck off
In order to apply for administrative restoration, you need to contact Companies House and complete an administrative restoration form. Form RT01 is the form used to restore a business that has been forcibly struck off.
There is a filing fee of £100, and when you complete the form, you must include all outstanding confirmation statements at the cost of £40 for each statement as well as the company accounts.
You must also file any penalty payments and if your company had assets, and you will also need a waiver letter from Bona Vacantia as well to confirm that the Crown representative doesn’t object to the company’s restoration.
What happens next?
When a company is restored to the register, it is deemed to have been in existence for the entirety of the strike off period – almost as if the dissolution had not taken place.
Companies House will usually decide whether to restore the company or not within two weeks. If an application for administrative restoration is rejected, restoration by court order may be an alternative option.
What about company restoration by court order?
If your company was not forcibly removed and instead you voluntarily dissolved the company, you’ll need to seek a company restoration by court order.
The application costs around £500-£800 plus some additional disbursements if required. Once all forms have been filed, you will be advised of a hearing date. If all goes to plan, the procedure should take around four months.
Why opt to restore a dissolved company?
There are many reasons why the directors of a company might decide to restore it.
1. To recommence trading
It’s important to note that in this case, for the company to be restored, it cannot have been dissolved for more than six years.
2. To release an asset
It’s also possible that the directors of shareholders may wish to restore a company temporarily in order to release an asset.
3. In response to a claim against it
For example, an employee wanting to make a claim for an injury. There is no time limit on this.
If your company has been struck off the register and you want to restore it, McAlister & Co can help.