Understanding the Process of Reinstating Articles of Incorporation
Reinstating articles of incorporation is the process by which a company regains its ability to conduct business activities after previously suspending them for any number of reasons. It is a formal administrative action of a particular jurisdiction which requires the company to deliver, either physically or electronically, all relevant documents and filings. This includes the articles of incorporation and any amendments needed to represent the company’s current operating state.
Once submitted, the reinstatement process begins to make the company a legitimate entity once again. Many companies go through a reinstatement process after filing for a formal dissolution or period of inactivity. It is a relatively simple process to gain back the privileges of a registered entity, but a crucial step to take for any company before initiating new business.
Reasons for Reinstating Articles of Incorporation
There are a number of reasons why a company might need to reinstate its articles of incorporation. Many companies choose to do so when they are re-strategisationg, or to align with new regulations, standards or markets. Reinstating articles of incorporation can also be necessary during mergers and acquisitions, or when a company changes its name or expands its operations.
In other cases, companies might reinstate their articles of incorporation to access the capital or other resources of another entity, or to revive business activities after dormancy. No matter the reason, the reinstatement process is essential to updating the legal requirements of a business, so it may continue functioning.
Legal Implications of Reinstating Articles of Incorporation
When a company reinstates its articles of incorporation, it must adhere to the laws governing its new jurisdiction. Usually this means filing any necessary official paperwork with the relevant entities, such as the local government agency. Failing to do so can result in serious fines or criminal charges.
The reinstatement process also requires the company to update its registration with the Secretary of State, such as name changes or a review of its current registered agents. The success of a company can depend on a successful reinstatement process, since it ensures that all parts of the entity are up-to-date with local laws and regulations. As such, it is in any company’s best interest to understand the full implications of this process before reinstating their articles of incorporation.
