In the business world, sometimes it’s necessary to bring a company back to life even after it has been struck off. This process of company restoration is like breathing new life into a dissolved entity. Whether a business was voluntarily dissolved or forcibly struck off, it’s sometimes possible to revive it, provided you follow the right procedures.

Tom Fox, a Licensed Insolvency Practitioner at Umbrella.UK Insolvency sheds light on this intricate process:

Restoration Paths: Administrative or Court Order

There are two primary avenues for company restoration, each dependent on the circumstances surrounding the strike-off.

Tom Fox, Licensed Insolvency Practitioner at Umbrella.UK Insolvency, explains:

“The method you choose for restoration hinges on whether the company was forcibly removed or voluntarily dissolved. Administrative restoration applies to the former, while court-ordered restoration is the solution for the latter.”

• Administrative Restoration:

Administrative restoration comes into play when a company is forcibly removed from the register. This process is applicable if you meet the following criteria:

• You were a director or shareholder of the business.
• The company’s removal occurred within the last six years.
• The company was actively trading before its dissolution.
• The removal was forced, not voluntary.

To initiate administrative restoration, you must contact Companies House and complete Form RT01, designed for businesses forcibly struck off. There is a filing fee of £100, and alongside the form, you must include any outstanding confirmation statements at £40 per statement, as well as the company accounts. Moreover, any penalty payments must be settled, and a waiver letter from Bona Vacantia is needed to confirm that the Crown representative doesn’t oppose the company’s revival.

After restoration, the company is deemed to have been continuously in existence throughout the strike-off period, as if the dissolution never occurred. Companies House typically makes a decision within two weeks. If administrative restoration is denied, the court-ordered route might be your alternative.

• Court-Ordered Restoration:

When a company is voluntarily dissolved, the path to revival involves a court-ordered restoration. This process usually incurs costs ranging from £500 to £800, plus potential additional disbursements, as required. Once all forms are filed, you will be given a hearing date, and if all proceeds as planned, the restoration process should be completed within approximately four months.

Motivations for Company Restoration

Directors and shareholders may have various motivations for restoring a dissolved company, as Tom Fox of Umbrella.UK Insolvency outlines:

• Resuming Trading:

It’s vital to note that if a company wishes to be restored, it cannot have been dissolved for more than six years. Many companies opt for restoration to recommence their business activities.

• Asset Release:

Directors or shareholders might seek a temporary restoration to release assets held by the company.

• In Response to Claims:

Restoration could be initiated in response to legal claims against the company, such as personal injury claims. Importantly, there’s no time limit for this scenario.

What’s Next for Your Restored Company?

If your company has been struck off the register and you’re considering restoration, it’s wise to seek professional guidance.

Tom Fox, Licensed Insolvency Practitioner at Umbrella.UK Insolvency, suggests,

“For tailored, confidential advice on the restoration process, don’t hesitate to contact our team of experienced insolvency practitioners at Umbrella.UK Insolvency. We’re here to help you navigate your company’s next steps and ensure a smooth path to revival.”

Contact us today on FREEPHONE 0800 611 8888 for a free initial, no-obligation consultation.