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* Companies House Guidance COMPANIES HOUSE OFFICIAL STATISTICS : DEFINITIONS TO ACCOMPANY STATISTICAL RELEASES Published 31 October 2024 CONTENTS * 1. Companies Act 2006 * 2. Small Business,

Enterprise and Employment Act * 3. Corporate bodies and companies * 4. Company types * 5. Corporate body types * 6. Companies and businesses * 7. The companies register * 8. Incorporation *

9. Dissolution * 10. Restoration * 11. Insolvency * Queries Print this page © Crown copyright 2024 This publication is licensed under the terms of the Open Government Licence v3.0 except

where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London

TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This

publication is available at

https://www.gov.uk/government/publications/definitions-to-accompany-our-statistical-releases/companies-house-official-statistics-definitions-to-accompany-statistical-releases 1. COMPANIES

ACT 2006 The Companies Act 2006 is an act of UK Parliament, and is the primary source of UK company law. Companies acts govern how UK limited companies operate, and have existed for over 150

years in various forms. The act introduced several significant changes to simplify and improve UK company law. These changes were implemented between 2006 and 2009. 2. SMALL BUSINESS,

ENTERPRISE AND EMPLOYMENT ACT The Small Business, Enterprise and Employment Act significantly changed legal requirements for companies, including what they file with Companies House. The act

received Royal Assent in March 2015. 3. CORPORATE BODIES AND COMPANIES Corporate bodies and companies are legal business types that are registered at Companies House. Companies are types of

corporate bodies formed under the Companies Act 2006. Corporate bodies and companies are registered at Companies House whether or not they go on to trade actively. 4. COMPANY TYPES The

corporate body types designated as companies under the Companies Act 2006 include: * public limited * private limited * private limited by guarantee with no share capital * private limited

by guarantee with no share capital (use of limited exemption) * private limited (section 30 exemption) * private unlimited * private unlimited with no share capital For the purpose of the

Companies Act 2006 and related legislation, the Channel Islands and the Isle of Man are not regarded as part of the UK companies register. 5. CORPORATE BODY TYPES Companies House official

statistics cover Companies Act 2006 companies, and the following corporate body types: * assurance companies * charitable incorporated organisations * European economic interest groupings *

further education and sixth form college corporations * investment companies with variable capital * investment companies with variable capital (securities) * investment companies with

variable capital (umbrella) * limited liability partnerships * limited partnerships * old public companies * other company types * overseas companies * overseas entities * protected cell

companies * registered societies * Royal Charter companies * Scottish charitable incorporated organisations * Scottish partnerships * UK economic interest groupings * UK Societas *

unregistered companies 6. COMPANIES AND BUSINESSES Companies are types of legal business structures defined by being registered at Companies House. Other legal business structures that are

not registered at Companies House include sole traders and business partnerships. Learn more about legal business structures. 7. THE COMPANIES REGISTER 7.1 TOTAL REGISTER The total register

includes all companies registered at Companies House and required to file documents, regardless of whether they are dormant or actively trading. The total register includes companies in

liquidation and receivership, and companies in the process of dissolution. It does not include companies that have been dissolved. 7.2 EFFECTIVE REGISTER The effective register contains all

companies on the total register that are not in liquidation or in the process of dissolution. 7.3 NET EFFECTIVE REGISTER The net effective register contains all companies on the effective

register that are not in receivership. TABLE 1: SUMMARY OF DIFFERENCES IN THE COMPOSITION OF THE TOTAL, EFFECTIVE AND NET EFFECTIVE REGISTERS COMPANY STATUS TOTAL REGISTER EFFECTIVE REGISTER

NET EFFECTIVE REGISTER Registered with Companies House: actively trading or dormant Yes Yes Yes In liquidation Yes No No In the course of dissolution Yes No No In receivership Yes Yes No

Dissolved No No No 8. INCORPORATION Incorporation is the process by which a new or existing business registers as a limited company. A business cannot operate as a limited company until it

has been incorporated at Companies House under the Companies Act 2006. A company is a legal entity with a separate identity from those who own or run it. Most companies are limited liability

companies where the liability of the members is limited by shares or by guarantee. Establishing a company means the directors are required to file certain documents every year, including

annual accounts and confirmation statements (which replaced annual returns). Companies must inform Companies House about any changes, such as the appointment or resignation of directors, or

a change to the company’s registered office address. Learn more about incorporation. 9. DISSOLUTION Dissolution means removing an incorporated company from the Companies House register. A

company that has been removed from the register is called a ‘dissolved company’. A company can be dissolved: * as the outcome of insolvency procedures * if the Registrar of Companies has

reason to believe the company is not carrying on business or is not in operation * by applying to be struck off the register if the company is dormant or no longer trading A company might

apply for dissolution if it is no longer needed. For example: * the directors wish to retire and there is no one to take over the running of the company * the company is a subsidiary whose

name is no longer needed * the company was set up to explore an idea that turned out not to be feasible Once a company has been dissolved it can be restored to the Companies House register

under certain circumstances. Learn more about dissolution. 10. RESTORATION There are 2 pathways for a dissolved company to be restored to the Companies House register. Any company which is

restored to the register is deemed to have continued in existence as if it had not been struck off and dissolved. 10.1 ADMINISTRATIVE RESTORATION A former director or member of a dissolved

company may apply to have the company restored to the register. They may apply for restoration if the registrar dissolved the company because it appeared to be no longer carrying on business

or in operation. Section 1025 of the Companies Act 2006 details the requirements of administrative restoration. 10.2 RESTORATION BY COURT ORDER A company that was dissolved following an

application under Section 1003 of the Companies Act 2006 (voluntary dissolution) can be restored by court order. A member or a creditor of the company can apply; any of the parties who must

be notified of the application for strike off may also apply. Learn more about restoration. 11. INSOLVENCY Company insolvency proceedings are formal measures taken when a company is unable

to pay its debts. Some insolvency proceedings result in a company closing or ‘winding up’, like compulsory liquidations and creditor’s voluntary liquidations. Some are aimed at rescuing or

restructuring a company, like receiverships, administrations and company voluntary arrangements. Member’s voluntary liquidation can take place when directors believe a company: * is solvent

* will be able to pay its debts in full within 12 months from the start of the winding up process The Insolvency Service reports the most complete picture on insolvency statistics and has

policy responsibility for all forms of corporate insolvency in England and Wales. Members’ voluntary liquidation is not included in Insolvency Service statistics, as it does not involve

insolvency. Learn more about liquidation and insolvency. QUERIES If you have a query relating to a Companies House statistical product, email [email protected]. Back to top