A company may be dissolved voluntarily by the directors, or its name can be forcibly removed from the Companies House register, in case required accounts and statutory filings have not been submitted. It is possible to restore a dissolved company through the process of restoration, which can be a choice for directors or shareholders. Here’s a quick overview of the process.
Quick look at the options
When a company’s name has been removed from Companies House register forcibly, the option is to go for administrative registration. In case directors have voluntarily dissolved the company, the name must be restored by court order, after completing an application.
Reviewing administrative restoration
As discussed earlier, administrative restoration works as an option if the company name was forcibly removed from the register. To restore the company back, it is important to contact the Companies House and complete the administrative restoration form. All pending documents and accounts must be provided for, with a form fee of £100. In case the company had any assets at that time, directors must contact Bona Vacantia to get a waiver letter.
It is possible to apply for administrative restoration, if
- The person is a shareholder or director of the concerned company
- The company name was struck off from Companies House register within last six years.
- The company was continuing to trade at the time when dissolved
To be precise, administrative restoration is not a choice if the company was dissolved by the directors.
Reviewing court restoration order
In case the directors had dissolved the company at will, a court restoration order is required to get its name back on the register. For the same, an application must be made, and costs must be paid, anywhere from £500 to £800, with additional charges. Directors may choose to restore a dissolved company for reasons like –
- For recommencing trade. If the directors want to recommence trade and get the company back into action owing to market changes and other factors, they can opt for restoration by court order. The application must be completed, all dues paid, and confirmation statements must be submitted.
- For releasing an asset. If the directors want to release an asset in the name of the company, restoration can be an option. However, this should be done within six years after the name is struck off, and the company name will be placed on Companies House register for a limited time. ‘
- For settling claims. If an employee or any third party such as creditors file a claim against the company, directors may consider restoration. Please note that a discretionary grant can be used to settle some claims instead of company restoration.
How long does it take to restore the dissolved company?
It depends if all the papers have been completed and whether dues and penalties have been paid. If done, a hearing date may be advised. All points include, it probably should take around 4 months to restore a company back on the Companies House register.
To understand company restoration and procedures better, contact business rescue experts for details.