| When running a limited company, there are many | | | | Fortunately, there is a solution. Under the |
| important things to consider. One of these is the | | | | Companies Act 2006 - Section 1024 onwards |
| legal obligations placed on the company. Perhaps | | | | supply a means for a company to apply to get |
| one of the most important of these is the | | | | back on the register via what is known as an |
| requirement to submit company accounts each | | | | administrative order. Through a number of steps, |
| year and on time. There are severe penalties for | | | | a company may apply for restoration on the |
| those companies that fail to do this. | | | | register, but they first have to satisfy a number |
| Initially failing to properly submit your company | | | | of criteria. |
| accounts can lead to a late filing penalty. These | | | | 1) At the time of being struck from the register, |
| are fines which increase with severity; the longer | | | | the company must have been carrying out their |
| the submission is delayed. The penalties were | | | | business. |
| introduced to ensure that the accounts and | | | | 2) The company must seek a waiver letter from |
| reports were submitted on time. These accounts | | | | the treasury solicitor. |
| are necessary for public accountability. | | | | 3) The company must pay all the penalties and |
| Fines for late penalties can be up to £7,500 (for | | | | fees that it owes |
| PLC's) or £1,500 for private limited companies). | | | | 4) The company must ensure that all its accounts |
| But there are far worse consequences. A | | | | and records are up to date. |
| company that continues to fail to submit its | | | | If all of these steps are satisfied, an application to |
| accounts and records may be struck from the | | | | be restored on the register may be made to the |
| companies register. This means that it can | | | | registrar (Companies House). The process may be |
| technically no longer trade as a limited company. | | | | quite expensive as the company is required to |
| Its assets also automatically pass to the crown. | | | | pay a number of fees and penalties: |
| This is actually quite a common occurrence. Many | | | | A) £79 to the treasury secretary for the |
| companies move their registered office address | | | | waiver letter. |
| and neglect to notify Companies House of the | | | | B) £100 for the Companies House processing |
| change. Therefore, when they fail to submit their | | | | fee. |
| accounts, they also do not receive the reminders | | | | C) All the penalties for late filing. |
| sent out by the registrar. Eventually they will be | | | | The process may take some time and be quite |
| struck off the register and their company will be | | | | costly, but it is preferable to the alternative which |
| dissolved without their knowledge. | | | | involves applying through the court system. |