Company has been dissolved

[Sandra Carnegie]

Sorry if this has already been asked before but I'm so confused with everything.

I opened a beauty salon in 2014 which was going really well and I had 1 employee. Business was really starting to take off, it had a great reputation and had a lot of regular clients when I became really unwell. I had no choice but to stop working. My employee kept things ticking over and paid all the bills etc. However during my time of illness my mother also passed and I started suffering from quite severe depression and didn't take anything to do with the business so no accounts were completed. I'm not using this as an excuse just giving you all the background on it.

Companies house have now dissolved my business as I had not sent completed accounts in March of last year.

I have gotten myself sorted and want to start again. Can I reopen the business using the same name. There are no debts at all. Only thing outstanding is a set of accounts however I just don't have the funds to pay to have the company reinstated (think it's in the region of £1k plus accountancy fees of about the same).

Is there anything I can do. I really want to get back on track again but unsure of what I can do. I want to keep the name as I think that the clients would come back again so wouldn't take as long to build it up again.

Any help would be greatly appreciated.

Thank you, Sandra

 

[Mr D]

You can set up a new company. New name. Pretty cheap to do.

Or pay to resurrect the old company.

What happened to the assets of the old company? You planning on buying them from the Crown or requesting they disclaim them?

 

[ChrisCallaghan]

Hi Sandra,
Pleased to hear you are back on your feet.
You can form a new company (you can do it on line fairly quickly) - but not using the same or very similar name.
So you could have a fresh start with a new name. If you are planning to trade from the same address and / or have a list of former customers you can get the word around that you are starting to trade again under a new brand.
Good luck
Phil

 

[Sandra Carnegie]

Hi Sandra,
Pleased to hear you are back on your feet.
You can form a new company (you can do it on line fairly quickly) - but not using the same or very similar name.
So you could have a fresh start with a new name. If you are planning to trade from the same address and / or have a list of former customers you can get the word around that you are starting to trade again under a new brand.
Good luck
Phil

Thanks Phil, it would be trading at same address but was hoping that I could use the old name rather than start a completely new business. Just feel it would be up and running quicker that way as old clients would return quicker.

 

[Sandra Carnegie]

You can set up a new company. New name. Pretty cheap to do.

Or pay to resurrect the old company.

What happened to the assets of the old company? You planning on buying them from the Crown or requesting they disclaim them?

Thank you for your reply. I have all the company assets. Nothing was taken. It was just dissolved. Hope that makes sense. I need to do it as cheaply as possible as funds are low at the moment. Was hoping to keep the old company name without paying out £1k to reinstate old company as would also need to send in accounts to companies house so that would require accountancy fees too.

 

[ChrisCallaghan]

Hi Sandra,

As Mr D said the alternative is to resurrect the old company. Unfortunately, there are strict rules about reusing the same (and potential penalties if you do). Easiest / cheapest is to start afresh.
Phil​

 

[Mr D]

Thank you for your reply. I have all the company assets. Nothing was taken. It was just dissolved. Hope that makes sense. I need to do it as cheaply as possible as funds are low at the moment. Was hoping to keep the old company name without paying out £1k to reinstate old company as would also need to send in accounts to companies house so that would require accountancy fees too.

The assets don't belong to you. They belong to the company, which when dissolves they pass to the crown.

 

[Sandra Carnegie]

Hi Sandra,

As Mr D said the alternative is to resurrect the old company. Unfortunately, there are strict rules about reusing the same (and potential penalties if you do). Easiest / cheapest is to start afresh.
Phil​

Thank you very much. Looks like it's going to be a new name. How similar can it be. For instance it was called Fresh Beauty & Skincare Centre could it be Fresh Skincare or would it need to be completely different?

 

[Sandra Carnegie]

The assets don't belong to you. They belong to the company, which when dissolves they pass to the crown.

Oh my goodness this just keeps getting more confusing. Does this mean I can't use any of the equipment I have (my husband bought it all for me so hoping this isn't the case)
Also in relation to naming the salon does it need to be completely different or can it be quite similar? I'm totally lost with all of this. Thank you so much

 

[Lisa Thomas]

Does your husband own the assets or did the Company own them?

The name would only be an issue if the Company was Liquidated.

 

[Newchodge]

Do you have to be a ltd company. You can set up as a sole trader using the same name.

 

[Newchodge]

I would not worry about the assets. I doubt the Queen or anyone else will be around to demand them from you.

 

[Sandra Carnegie]

Does your husband own the assets or did the Company own them?

The name would only be an issue if the Company was Liquidated.

My husband bought them with money from his account

 

[Sandra Carnegie]

Do you have to be a ltd company. You can set up as a sole trader using the same name.

I would have an employee so think it would need to be a limited company in order to pay wages or is this incorrect?

 

[Sandra Carnegie]

Does your husband own the assets or did the Company own them?

The name would only be an issue if the Company was Liquidated.

It wasn't liquidated, it was dissolved due to not sending in accounts on time. It was previously called Fresh Beauty & Skincare Centre could I potentially call it just Fresh Skincare? Don't want to get myself into trouble. Panicking a bit about everything

 

[Newchodge]

I would have an employee so think it would need to be a limited company in order to pay wages or is this incorrect?

That's incorrect. A sole trader can be an employer without any problem whatsoever.

 

[Mr D]

I would have an employee so think it would need to be a limited company in order to pay wages or is this incorrect?

Sole trade or limited company either one can pay wages.

However the type of business has impact on reporting, accounting, tax and your personal income.
You can set up a limited company if you want.

 

[Chris Ashdown]

Did you not be able to just make a change to the name like j.smith becomes j.smith (2019) ltd or is that not now allowed, after all the old company is dissolved

 

[Pendulum]

Unfortunately, there are strict rules about reusing the same (and potential penalties if you do)
Phil​

What rules please? Penalties under what legislation?

 

[Scalloway]

What rules please?

Section 216 of the Insolvency Act 1986

a penalty which includes one or more of the following:

• A fine
• Imprisonment
• Personal liability for the company’s debts

https://www.companydebt.com/liquidation/section-216-the-re-use-of-a-liquidated-company-name/

 

[Lisa Thomas]

The Phoenix regs only applies to a Liquidated Company.