Restoring a company in Jersey involves a structured process governed by the Companies (Jersey) Law 1991. This guide outlines the key steps, requirements, and considerations for reinstating a company that has been struck off the register or dissolved.

Why Companies Are Struck Off in Jersey

Companies in Jersey may be struck off or dissolved for reasons such as:

1. Failure to File Annual Returns:
   • Companies must submit annual returns to the Jersey Financial Services Commission (JFSC). Non-compliance can result in striking off.
2. Non-Payment of Fees:
   • Annual fees are mandatory, and non-payment is a common reason for removal from the register.
3. Voluntary Dissolution:
   • Shareholders may choose to dissolve a company, but restoration may be needed if circumstances change.
4. Regulatory Non-Compliance:
   • Breaches of Jersey’s regulatory requirements can lead to administrative striking off.

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The Restoration Process

1. Determine Eligibility:
   • Companies struck off within 10 years can generally apply for restoration.
   • Court approval is required for companies dissolved for longer periods.
2. Engage a Local Representative:
   • Restoration must be handled through a local authorized representative, such as a law firm or corporate service provider.
3. Submit an Application to the JFSC:
   • The application must include:
     • The company name and registration number.
     • Evidence of compliance with outstanding regulatory obligations.
     • Payment of restoration fees and outstanding annual returns.
4. Pay Outstanding Fees and Penalties:
   • All unpaid fees, including penalties for late filings, must be settled before the restoration process can proceed.
5. Obtain Court Approval (if applicable):
   • For companies requiring court restoration, an application must be made to the Royal Court of Jersey. Legal representation is required for this process.
6. Receive Confirmation of Restoration:
   • Once approved, the JFSC reinstates the company on the register, and it regains its legal status.

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Key Considerations

1. Time Limits:
   • Applications for administrative restoration must be made within 10 years of the company’s dissolution.
   • Beyond 10 years, court restoration is the only option.
2. Impact on Liabilities:
   • Restoration revives all prior liabilities and obligations of the company, including debts and contractual responsibilities.
3. Future Compliance:
   • Restored companies must adhere to Jersey’s regulatory requirements to avoid future issues.

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Costs Involved

The cost of restoring a company in Jersey includes:

• Outstanding Fees: Unpaid annual returns and late penalties.
• Restoration Fees: Administrative fees charged by the JFSC.
• Legal Fees: Applicable for court-ordered restorations.
• Representative Fees: Costs for engaging a local service provider.

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Benefits of Restoring a Company in Jersey

1. Asset Recovery:
   • Restoration allows access to company-owned assets, such as bank accounts and property.
2. Business Continuity:
   • Enables the company to resume operations without forming a new entity.
3. Retention of Original Incorporation Date:
   • Restored companies maintain their original incorporation date and corporate identity.

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Conclusion

Restoring a company in Jersey is essential for reclaiming assets, resuming operations, or addressing outstanding obligations. By understanding the restoration process and working with experienced professionals, companies can ensure a smooth and efficient reinstatement.

For more detailed insights, explore our resources on company restoration here, or contact us today to discuss company restoration requirements in Jersey.