How Long Does It Take For ASIC To Reinstate A Company

Business enterprises, like people, are born, grow to maturity, and ultimately perish. A corporation has the same legal rights and responsibilities as a natural person while it is in existence. However, a company must be registered to be sued or to bring legal action against another party.

How Long Does It Take For ASIC To Reinstate A Company?

In some cases, the Australian Securities and Investments Commission (ASIC) may take longer than others to reinstate a business. The length of time needed to complete a task may vary depending on variables such as how difficult the task is, how quickly relevant information becomes available, and how cooperative the company and its directors are.

It’s hard to give an estimate without knowing more about the company and the circumstances surrounding its deregistration. If you need further information, ASIC is the best place to go.

There are several potential causes for a business’ deregistration. It can be initiated by ASIC if they have reason to suspect the company is no longer conducting business, or it can be initiated voluntarily by the members (shareholders) of the company.

When a business is deregistered, its existence ends and its assets become the property of ASIC. The assets of a deregistered corporation could be pursued in court if the plaintiff has a valid claim under a contract (usually an insurance policy) with the company.

A business, unlike a human being, can be revived. The Court can be petitioned to restore the business. The Court may order ASIC to reinstate the company’s registration if it finds that doing so would be equitable. When a deregistered company is reinstated, it is treated as if it had never been deregistered, and any assets held by ASIC are returned to the firm.

In that case, either the firm or its shareholders can initiate legal action. The Court may direct that a deregistered company be re-established and that the (previously brought) process be resumed from the time the deregistration was discovered.

The Reinstatement Process And Application

The act of putting something back where it was before is known as reinstatement. In the context of insurance, reinstatement means that a lapsed policy is once again in force.

If you don’t pay your premiums on time, the insurance company may ask for proof that you still qualify, like a recent physical exam for life insurance, as well as full payment. After the policy has been renewed, the insurance company should do everything it can to keep the person from not paying again.

After the grace period expires and the policy is no longer in force, the policyholder must take the necessary steps to reinstate the policy before the beneficiaries get any payout.

The following are the typical steps taken to restore a deregistered company with the Australian Securities and Investments Commission (ASIC):

  • A reinstatement application, along with any necessary supporting documentation, must be submitted to ASIC by the company’s directors or shareholders.
  • The application will be evaluated by ASIC to see if the business meets the requirements for re-registration. This may necessitate looking into the company or asking for more information from the directors.
  • The company will be added back to the register of companies and a notice of reinstatement will be issued by ASIC if the application is accepted.
  • In addition to satisfying any outstanding fines or fees, the corporation must fulfil all other legal obligations, such as submitting complete and timely annual reports and maintaining thorough and accurate financial records.

To be reinstated, a corporation may need to present new paperwork or meet certain conditions, both of which might add months to the process.

In addition to the stages indicated above, there are a few crucial things to keep in mind while filing for the reinstatement of a company deregistered by ASIC:

  • The corporation must have been deregistered in conformity with the Corporations Act 2001. This signifies that the corporation must have been deregistered for not lodging annual statements or by application.
  • The corporation must be able to demonstrate that it has remedied any lingering difficulties that led to its deregistration, such as unpaid fees or fines.
  • The company must be able to establish that it can meet its duties as a registered company, including compliance with the Corporations Act 2001, and any other laws and regulations relevant to its operation.
  • The company’s directors must issue a statement of solvency, which guarantees that the company will be able to pay its debts when they fall due.
  • The company must give evidence that it has notified all of its creditors of the application for reinstatement and none of them has objected to the restoration. If the application is rejected, the company will remain deregistered and will not be able to conduct business or own assets.

It’s important to know that the reinstatement process is not guaranteed and that ASIC can accept or deny a request for reinstatement.

How To Reinstate As A Third Party

If the Australian Securities and Investments Commission (ASIC) has deregistered your company and you cannot have it reinstated through the present directors or shareholders, you may be able to have a third party do so on your behalf. When applying as a third party, a corporation may have to go through a more involved process than when applying as its present directors or owners.

  • Find out which firm was deregistered and whether it meets the requirements for re-registration.
  • It is necessary to track down the company’s creditors and stockholders and inform them of your desire to re-enter the market.
  • Get your reinstatement paperwork in order, including proof of notification to creditors and a statement of solvency.
  • Don’t forget to include the application fee when sending it to ASIC.
  • The company will be added back to the register of companies and a notice of reinstatement will be issued by ASIC if the application is accepted.
  • In addition to satisfying any outstanding fines or fees, the corporation must fulfil all other legal obligations, such as submitting complete and timely annual reports and maintaining thorough and accurate financial records.

As an outsider, you will have to show that you can handle the company’s legal responsibilities as a registered company, such as following the Corporations Act 2001 and any other rules that apply to the company’s line of work. There also needs to be approval from the majority of shareholders and no pushback from creditors. It’s also a good idea to talk to a professional, like a lawyer or an accountant.

Reinstating A Company’s Benefits

The Australian Securities and Investments Commission (ASIC) may reinstate a previously deregistered firm if it believes it will benefit the Australian economy. Here are a few possible advantages:

  • Once again, the organization can hold assets and do business without violating any laws. This allows the organization to legally take on business operations such as making deals and collecting payments.
  • In the future, the business will have access to loans and other financial services that it may not have had before it was deregistered.
  • There will be a resumption of trading, so shareholders can once again realize gains from trading their shares.
  • Any obligations due to creditors can be collected from the business.
  • As a corporation, the company will be able to file yearly reports and fulfil other legal requirements.
  • The company’s reputation and trustworthiness can be increased by being open and honest with its stakeholders.

An organization’s reinstatement does not cancel its obligations or resolve any pending lawsuits. The firm and its directors will still be held responsible for all obligations and legal issues that were in place before deregistration. To keep its legal status as a corporation, the company must pay any fines or fees that are past due and make sure it follows all laws.


Reinstating an ASIC-deregistered corporation requires an application and supporting paperwork. Reinstating a corporation allows it to lawfully conduct business, keep assets, obtain credit and other financial services, and meet its legal duties as a registered company.

It’s important to remember that the company will still be liable for any debts or legal issues that existed before deregistration and that a third party must have the capacity to meet the company’s obligations as a registered company, the support of the majority of shareholders, and no objection from creditors. Always seek legal or financial advice.

More information is available by clicking reinstating a company!

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