Understanding company status at Companies House
Companies House records a company's status as one of the following: Active, Dormant, In Administration, In Liquidation, Receivership, or Dissolved/Struck Off. A dormant company is one that has had no significant accounting transactions in the relevant period. Dormancy itself does not prevent finance, but it signals no active trading, which most lenders require.
A pending strike-off occurs when Companies House has issued a first gazette notice to strike off the company (usually for failure to file accounts or confirmation statements). At this stage, lending is extremely unlikely. Any assets of the company could be dissolved with the company.
Restoring a struck-off or dissolved company
If your company has been struck off within the last six years, it may be possible to restore it to the register via an administrative restoration application (if you were a director or member at the time of dissolution) or a court-ordered restoration. Administrative restoration is simpler and typically takes 4 to 8 weeks.
Once restored, the company resumes active status and, in principle, can approach lenders again. However, lenders will note the period of inactivity and dissolution, and this will need to be explained as part of any finance application.
- Dormant companies rarely qualify for conventional business finance
- Pending strike-off companies will be declined by virtually all lenders
- Dissolved companies cannot apply for or receive business finance
- Administrative restoration is possible within 6 years of dissolution
- Court-ordered restoration is available beyond 6 years in limited circumstances
- Resolving company status before applying for finance is essential
Frequently Asked Questions
Can a dormant company get a business bank account?
Some banks will open accounts for dormant companies, but most will require evidence of intended trading activity. Without an active business bank account, accessing business finance is extremely difficult.
What is the difference between dormant and struck off?
A dormant company is one that has had no significant transactions but is still active on the Companies House register. A struck-off company has been removed from the register entirely and legally no longer exists. The distinction is critical: a dormant company can trade and apply for finance; a struck-off company cannot.