Administrative restoration of a limited company is possible if your company was dissolved forcefully due to any reason. Not filing your business accounts on time is also one of the reasons to strike off. However how to restore a limited company that was dissolved forcibly is not that big deal even if it is removed from the registration of the companies house, there is a high chance that you can restore your business all over again. Moreover, you will have to consider why was your company dissolved or removed from the register of companies house. The directors are advised to apply for administrative restoration for the sake of registration again.
On the other hand, if the dissolving case of your business was not done forcibly due to not being able to file your accounts but done voluntarily by the directors and now they aim to resume the business activities, this case requires a court order for the restoration of the dissolved company.
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How to Restore a Limited Company – Administrative Restoration
As discussed earlier in the case a business was dissolved forcibly, administrative restoration will be required to revive the business activities. One of the major reasons for the forcible dissolving of business involves the act of not filing your accounts on time. Now when you aim to restore your company, all you will have to do is to get in touch with the companies house and complete the form of administrative restoration. It is a must to provide the details of company accounts and outstanding confirmation statements in order to make it a successful form submission.
Moreover, with the process of form filling and submission, you will have to submit the fees and clear any payments if due in form of penalties and fines. These expenses might include the fees for the outstanding confirmation statements or the fines for filing the account late. In the case of the company assets, you will have to manage a waiver letter from a legal government department Bona Vacantia for applying for the administrative restoration. There are a few conditions that you must consider before you aim to apply for the restoration, these include the following listed points:
- The trading activities of the business were alive until the time of the forcible dissolving of the company.
- The company was struck off due to not filing accounts on time and was removed from the registration with companies house. However, this was done within the period of the last six years.
- Your role is of the shareholder of the director of the business.
Please note that if the company was not dissolved forcibly but voluntarily by the directors, you will have to require a court order for the sake of business restoration.
The Restoration Order of the Court
As mentioned earlier, when a business is struck off voluntarily by the shareholders of the company or by the directors, the scenario is totally changed in this case. This procedure of restoration of the company will require a court order. This kind of application for company restoration generally has a little additional cost. This could possibly be an amount between £500 to £800 plus. There can be several reasons to restore a dissolved limited company, the prominent possible reasons are listed and explained below.
1- How to Recommence Trade?
Recommencing trade chosen by the directors or shareholders of the company is one of the major reasons for the process of company restoration after it was dissolved. This normally happens when the specific industry that your business belongs to observes rapid growth. However, you will have to ensure that the company was not dissolved before the period of six years. All you will have to do is to submit the fees and fill out the form of restoration. Confirmation statements and accounts also need to be considered in this procedure.
2- Reinstate the Business to Release an Asset
The time limit of six years as discussed above will also be considered if you aim to reinstate the business for the sake of releasing the asset. In this case, the reason makes the business on the register of companies house temporarily. When a company is dissolved for a longer period of time, its assets will be under the control of the crown once a certain time limit has passed.
3- Claims Against the Company
Another prominent reason for the restoration of a dissolved company is the claims that are against the company. As claims against a business can be done without the consideration of a set time limit. The limit of six years is not applicable in this case. Let’s take the example of an employee who claims expenses of an injury, it will be considered and all he has to do is provide the medical documents. In case of a low amount, the business will not be asked for the restoration but a discretionary grant will be used to compensate the claim.
The Bottom Line
Now that you have gathered a fair amount of information about how to restore a limited company, we can say that the restoration process of a limited company after it was dissolved forcibly or voluntarily is complicated to handle. As it requires the consideration of many aspects for a successful result. We hope these few minutes of reading will help you to develop a better understanding of the restoration of a dissolved company and how to go with the possibilities.
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Disclaimer: All the information provided in this article on how to restore a limited company, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.