How can I get a company reinstated?
When a company is deregistered, it no longer exists as a legal entity and cannot conduct trade. Common reasons that a company is deregistered include:
- voluntarily ceasing trade;
- liquidation; or
- being struck off the register by ASIC.
Sometimes parties involved in the company prior to deregistration want to reinstate the company at a later date. It is possible to do this by applying to ASIC for reinstatement.
LawPath has business lawyers who can assist you with this application process and provide the support needed to get the company up and running again.
Eligibility
To be eligible to apply for the reinstatement of a company with ASIC, you must:
- have been a director, secretary or member of the company when it was deregistered;
- be able to confirm that the company will be solvent, meaning it will be able to pay its debts as and when they fall due once it is reinstated;
- not have been disqualified from managing a company; and
- if relevant, provide evidence as to why the company should not have been deregistered.
If the company was voluntarily deregistered, you will need to prove that the declaration you made with the application was incorrect when the company was deregistered.
The Application Process
There are several steps that need to be completed when applying for reinstatement:
- You will need to check if the company name is still available;
- You will need to calculate how much the reinstatement will cost using ASIC’s ‘Reinstatement Calculator’;
- Once you have received a rough estimate of the fees using the reinstatement calculator, you will need to request a detailed quote from ASIC;
- You will need to fill out Form 581 Application for ASIC Reinstatement and return it to ASIC with the reinstatement fee paid. It can take up to 28 days after ASIC receives your application until they make a decision.
The application form can be found on ASIC’s website.
Application to the court for reinstatement
Alternatively, you can apply to the court for an order that ASIC reinstate the company. When companies are deregistered, parties lose the ability to bring legal proceedings against the company. Aggrieved persons or the former liquidator may apply to ASIC to have the company reinstated so that debts can be claimed.
You may also apply for a court order for reinstatement if ASIC refuses your application. If this is an avenue you are interested in pursuing, we recommend engaging one of LawPath’s business lawyers to get some advice about the court process.
Conclusion
Once your company has been reinstated, LawPath has specialised business lawyers who can help set up your company for success. They can assist with easily modifiable legal documents and agreements necessary to support your company’s growth.
Need more help? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from Australia’s largest legal marketplace or to get answers to your legal questions.
