Restore a company – what you need to know
When companies are struck off the register, it is either for failure to file confirmation statements and/or the accounts, or the directors of the company have submitted the appropriate form to Companies House to have the company struck off.
In the case where Companies House have struck off a company for non-filing, there are occasions where the directors still want to trade the company. This can be for a variety of reasons, and the procedure for restoring to trade again is known as an administrative restoration.
Administrative restoration
The company must have been struck off by Companies House. It must have occurred within the last 6 years. All outstanding confirmation statements and accounts must be filed and the appropriate duty and late filing penalties paid. For each confirmation statement, the fee is £40.00. The late filing penalties for the accounts depend on when the company was stuck off. It is rare for there to be more than one year’s accounts that incur the penalty however the maximum for one year is £1500.00.
Court restoration – to trade again
If the company was struck off by the directors and they wish to trade again all outstanding accounts and confirmation statements will have to be prepared for filing with the registry together with the appropriate fees and penalty payment.
Court restoration – to release an asset
The more common court restoration is to release an asset still held in the dissolved company’s name. Under these circumstances, the company can be restored for a limited period allowing the asset to be transferred. Following the transfer, the company must be dissolved once again. No accounts or confirmation statements have to be prepared and no penalties will apply.
For both these procedures, there is a 6 year limit following dissolution.
Court restoration – to make an insurance claim
If a company is dissolved it is possible for a former employee or relative of an employee to restore the company to make a claim against the company’s insurers. This would be for an illness or accident incurred during the period the employee was working for the company.
To make such a claim it has to be proved that a person worked for the company and was diagnosed with an illness or disability as a result of an accident during their employment with the company. This has to be supported by medical evidence. In addition, the insurance company in question has to agree that in the event of the company being restored they would meet any claim.
There is no time limit on these types of restoration.
Additional information on dissolved companies
If the registered office address is in either Cornwall or Lancashire additional fees of £180.00 inclusive will apply.
If the dissolved company has left money in a bank account and was less than £3000.00, the company does not have to be restored at all. The director can apply for a discretionary grant from the treasury solicitor. Please ask First Corporate for details.
If the dissolved company held title to a commercial lease, it may be possible to have this lease transferred without the need to restore the company. Please ask First Corporate for details.
How First Corporate can help
Administrative restoration – First Corporate can restore the company to the register for £240.00 plus of vat, plus Companies House fees.
Court restoration – First Corporate prepare all the paperwork and deal with the courts, treasury solicitor and Companies House. The fee will be £2000.00 inclusive of vat, Companies House, treasury solicitor, and court fees but exclusive of any fees due for accounts and confirmation statements.
Please feel contact Steve Blackmore on 029 20 229080 or email steve@fcls.co.uk for more information.
Other Links
FirstOrder Secretarial – Cloud based company administration system