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How to Restart a Dormant Company

KickStart_TaxAgility Accountants LondonIf you decide to restart trading under your dormant or non-trading company doing so is a relatively easy process; whereas restoring a dissolved company with the same intentions takes a while longer, but can certainly be done.

Restarting a Dormant or Non-Trading Company

It’s crucial that you tell HMRC within three months of restarting a dormant or non-trading company; though ideally it doesn’t hurt to let them know as soon as possible.

You’ll then have a number of forms to complete that, though you can see to yourself, you may wish for an accountant to deal with on your behalf (see details below). The following is what’s expected of you, and your company, in the first twelve months after you restart trading:

  1. Your accounts must be sent to Companies House within nine months of your company’s year end. During the period in which your company remained dormant you should have continued sending accounts to Companies House; therefore your company’s year end will remain the same as it’s always been.
  2. You must pay Corporation Tax within nine months and one day of your company’s year end. Conversely, your Corporation Tax period starts when you restart trading and is unrelated to previous accounting periods.
  3. You must send HMRC a completed Company Tax Return within twelve months of your company’s year end. Your Company Tax Return must include a copy of your statutory accounts, and as with the first point your company’s year end will remain the same as it’s always been.

Restoring a Dissolved Company

It’s possible to apply to have your dissolved company restored if your company has been struck off the register and dissolved by the Registrar of Companies; though there are some caveats in place.

You’re welcome to apply for administrative restoration of your dissolved company if any or all of the following apply:

  • You were formerly a director or shareholder of the company,
  • You didn’t volunteer for your company to be struck off the register,
  • The company was trading (rather than in a dormant or non-trading state) when it was struck off the register.

In order to apply for administrative restoration of your dissolved company you’ll need to complete Form RT01 and send it to Companies House alongside a £100.00 cheque made payable to Companies House, all and any outstanding company documents, and a waiver letter if your company formerly held assets.

When Companies House receives your application the Registrar of Companies will take their time in deciding whether or not to restore your company. If they refuse your fight isn’t over; you may apply for a court order and receive a discretionary grant if you’re a former shareholder.

Need Assistance with How to Restart a Dormant Company?

To speak with a professional to discuss the prospect of restarting a dormant or dissolved company, and how we can take care of the hard work for you, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.

 

This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

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