Companies House figures suggest that as many as 90% of administrative restoration applications are initially rejected because of errors in the paperwork required, leading to delays in resuming business and accessing vital company funds.
With more and more companies being struck off for non-compliance than ever before, here are our top 5 tips for making the restoration process easier and reducing the risk of rejection:
- Accounts – if you need to prepare accounts to bring the public record up to date then consider whether the accounts are prepared under the Companies Act 1985 or the Companies Act 2006. The statements required to be made will differ depending on which Act applies which, in turn, depends on the period that the accounts cover. There are also further rules about signing and stating who has signed under the Companies Act 2006.
- Don’t forget the need to have the right letter from the Treasury Solicitor to waive the Crown’s claim to any assets.*
- Remember the devil is in the detail. The documents required are relatively complicated so do consider seeking expert help. Failure to put signatures in the right place/ to include all the relevant information or putting statements in relation to the accounts in the wrong places will all lead to rejections.
- Some companies fail to calculate the late filing penalties due correctly. There is a sliding scale of penalties depending on the period of lateness and, in certain cases, doubling of penalties for successive defaults.
- Make sure you have the correct versions of all the forms you need to file – the annual return may be one required under the Companies Act 1985 and others will be under the Companies Act 2006.
*Special provisions apply to companies with a registered office in the Duchy of Lancaster or Cornwall, Northern Ireland or Scotland.
Of course, prevention is always better than cure. So keeping up with compliance on a regular basis is of course a much better option that having to restore a defunct company. Helen Goose, Head of our Corporate Legal Services team says “in a few cases the Treasury Solicitor might have already sold a property previously belonging to a company (leaving the company with only a right to the sale price less their costs etc) or might be in the process of doing so and will expect their legal costs to be paid”.
Helen and her team are rightfully proud of the extremely low levels of rejections experienced by clients who use Jordans restorations service. “Our rejection rate is considerably lower than that generally reported by Companies House. Attention to detail is key in ensuring the process runs smoothly”, commented Helen.
For further information about Jordans restoration service, contact Helen Goose on 0117 918 1322 or email [email protected].