What is administrative restoration of a company?

What is Administrative Restoration?Administrative restoration of a company refers to the process of restoring a company to the register of companies following its removal due to administrative reasons.

This typically occurs when a company has failed to file its annual accounts or annual confirmation statement for a period of time, resulting in the company being struck off the register. The restoration process involves making an application to the registrar of companies, providing evidence that the company has addressed the issue that led to its removal and paying any outstanding fees.

Once the registrar is satisfied that the company is eligible for restoration, it will be restored to the register and will be deemed to have continued in existence as if it had never been removed.

Administrative restoration can be a complex and time-consuming process, but it can be a crucial step for a company to regain its legal status and resume trading.

In this article, we will provide a comprehensive guide on what administrative restoration is and how it works. Our aim is to offer you an in-depth understanding of this process, which will help you make informed decisions about your company’s future.

What is Administrative Restoration?

Administrative restoration is a process that allows a company to be restored to the Companies House register after it has been struck off. The striking off process is a legal process that removes a company’s name from the register, and it can occur for various reasons, such as failure to file annual returns or accounts. Once a company has been struck off, it no longer exists as a legal entity, and its assets become property of the Crown.

Administrative restoration is only possible if the company was struck off the register within the last six years, and there is a genuine reason for restoration. Some valid reasons for restoration include the discovery of assets, the need to continue trading, or the resolution of legal disputes.

Why would a company be forcibly struck off?

A company can be forcibly struck off the register by Companies House for a variety of reasons. Some common reasons include:

  • Failure to file annual accounts and/or confirmation statements
  • Failure to respond to official correspondence from Companies House
  • Insufficient evidence of trading activity
  • Failure to pay fees or taxes owed to HMRC
  • Involvement in fraudulent or illegal activities

When a company is forcibly struck off, it is removed from the register and no longer exists as a legal entity. This can have serious consequences, such as the loss of any assets held in the company’s name, and potential legal liabilities for the company’s directors. It’s important for company directors to stay on top of their regulatory obligations and ensure that they meet all necessary deadlines, to avoid the risk of forcible strike-off and the need for costly restoration procedures.

Can a company be restored to the Companies House register after being struck off?

Yes, it is possible for a company to be restored to the Companies House register after being struck off. There are two main ways to achieve this: voluntary restoration and administrative restoration.

Voluntary restoration involves applying to the court to have the company restored, and is typically used when the company was dissolved voluntarily. This can be a more complex and expensive process, as it involves going through the court system and may require the involvement of a solicitor.

Administrative restoration, on the other hand, is a simpler and faster process that involves making an application to Companies House. To be eligible for administrative restoration, the company must have been struck off involuntarily, and the application must be made within 6 years of the company’s removal from the register. If the application is successful, the company will be restored to the register and will be able to trade again, although there may be some restrictions and penalties associated with the restoration process.

How does Administrative Restoration Work?

The process of administrative restoration involves submitting an application to the Companies House, along with the required fee and supporting documents. The application should explain why the company was struck off and why restoration is necessary. Once the Companies House receives the application, it will review it and, if satisfied, will restore the company to the register.

It is essential to note that administrative restoration is not always straightforward. For example, if the company has any outstanding liabilities, such as unpaid taxes or fines, these will need to be settled before the restoration can take place. Additionally, if the company had any directors or shareholders who have since died, there may be legal complications to consider.

How to carry out an administrative restoration

Carrying out an administrative restoration typically involves submitting an application to Companies House, along with any necessary documentation and payment of the relevant fee. The application should include details such as the company’s name, registration number, and the reason for its removal from the register. In addition, the application should explain why the company wishes to be restored, and provide evidence that it has met all necessary requirements for restoration, such as filing outstanding annual accounts and confirmation statements. Companies House will review the application and, if satisfied, will grant the restoration and update the register accordingly.

Here is an example:

  • Step 1: Determine eligibility for restoration
    • Review Companies House records to confirm the company’s registration status and reason for removal from the register
    • Assess whether the company meets the requirements for restoration, such as filing all necessary documentation and paying any outstanding fees
  • Step 2: Prepare the application
    • Gather all necessary documentation, such as the company’s articles of association and up-to-date financial records
    • Draft a clear and concise explanation of why the company wishes to be restored, and how it has met all necessary requirements
    • Complete the application form and ensure that all details are accurate and up-to-date
  • Step 3: Submit the application and fee
    • Send the application and fee to Companies House within the relevant time limit (6 years for involuntary removal, 12 months for voluntary dissolution)
    • Await confirmation from Companies House that the restoration has been granted

It’s worth noting that there are strict time limits for making an application for administrative restoration. In general, the application must be made within 6 years of the company’s removal from the register. If the company was dissolved voluntarily, the time limit is 12 months from the date of dissolution.

It’s therefore important to act quickly if you wish to restore your company, to avoid missing the deadline and potentially losing your chance to trade again.

Benefits of Administrative Restoration

Administrative restoration can be a useful tool for companies that have been struck off the register but still have valuable assets or ongoing legal disputes. Restoration can help protect the company’s interests, and it can also allow it to continue trading and generating revenue.

Another advantage of administrative restoration is that it can help restore the company’s reputation. When a company is struck off, it can be challenging to regain the trust of customers, suppliers, and creditors. Restoration can help to demonstrate that the company is serious about its business and is committed to fulfilling its obligations.

What happens when administrative restoration is approved?

When an application for administrative restoration is approved, the company is officially reinstated to the register and can resume trading as before. This means that the company’s name, registration number, and previous filing history are restored, and any assets that remained in the business can now be reclaimed.

In addition, any legal proceedings or claims that were halted as a result of the company’s removal from the register can be reinstated. However, it’s worth noting that the company will need to catch up with any outstanding filings or payments that were missed during the time it was off the register. Overall, administrative restoration provides a valuable lifeline for companies that have been inadvertently struck off the register and want to get back on track.

What if an application for administrative restoration is refused?

In the event that an application for administrative restoration is refused, the directors and shareholders of the company may still have some options available to them. They could, for instance, appeal the decision if they believe that the refusal was unjust or based on incorrect information.

Alternatively, they may choose to apply for a court order to have the company restored to the register. However, this option can be costly and time-consuming, and is generally only recommended if other options have been exhausted. Ultimately, it is important for company directors to ensure that they meet all regulatory requirements and deadlines to avoid the need for restoration in the first place.

Frequently asked questions

How long does administrative restoration take?

The administrative restoration process takes about 2 weeks, in that time Companies House will inform you of the decision.

Why would a company be restored?

A company would be restored to the register if the Secretary of State has an interest. a former director of the company would like to resume trading* a creditor (at the time of striking off or dissolution) wishes to recover debts. land or property that the company had (or has an interest in) may be of relevance.

Conclusion

In conclusion, administrative restoration is a process that can help companies that have been struck off the register. The process involves submitting an application to the Companies House, along with the required fee and supporting documents. If the application is successful, the company will be restored to the register, and it can continue trading and protecting its assets.

While administrative restoration is not always straightforward, it can be a useful tool for companies that need to protect their interests and reputation. We hope that this guide has been helpful, and we encourage you to seek professional advice if you are considering administrative restoration for your company.

Insolvency & Restructuring Expert at Business Insolvency Helpline | + posts

With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.

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