SERVING A STATUTORY DEMAND ON A COMPANY VS AN INDIVIDUAL - KEY DIFFERENCES EXPLAINED
- Tracenet Legal Services
- Jun 23
- 6 min read
1️⃣ Introduction
A statutory demand is one of the most powerful debt recovery tools in UK insolvency law. But its strength depends entirely on serving it correctly — and the rules differ significantly between serving a company and an individual. A single service error can invalidate the demand, delay your case, or allow the debtor to challenge it. This guide explains the key differences in serving statutory demands on companies versus individuals, and how Tracenet’s trusted process servers ensure compliance every time.
👉 For a step-by-step foundation, see our page: How to Serve a Statutory Demand
Contents
Conclusion and Why Choose Tracenet Legal Services
Useful Weblinks
1️⃣ Introduction
Serving a statutory demand is one of the most effective ways to enforce an undisputed debt in England and Wales. But the legal rules and practical risks vary significantly between serving a company and an individual.
Many creditors and even junior solicitors assume “service is service”. In practice, an error in who, where, or how you serve can result in your winding-up or bankruptcy petition being dismissed — wasting costs and time, and damaging your client’s case.
This comprehensive guide explains the key differences — in statute, in court practice, and in real-life tactics — and how Tracenet’s professional process servers ensure bulletproof compliance.
👉 For an essential step-by-step foundation, see our main guide: How to Serve a Statutory Demand.
2️⃣ Why Proper Service is Crucial — Practical Consequences
Serving a statutory demand correctly triggers:
✅ The statutory presumption of insolvency under Insolvency Act 1986 s.123 (companies) and s.268 (individuals).
✅ The 21-day clock for the debtor to pay, settle or apply to set aside (18 days for set aside, individuals).
✅ The creditor’s right to escalate to a winding-up petition or bankruptcy petition if unpaid.
Wrongly served demand = no statutory presumption.
Result: Petition struck out, wasted costs, possible adverse costs order.
3️⃣ UK Legal Framework for Service
📜 Key sources:
Insolvency Act 1986
s.123: Company presumed insolvent if fails to pay.
s.268: Individual presumed unable to pay.
Insolvency (England and Wales) Rules 2016
r.6.3 & r.6.9: Company service at registered office.
Part 10: Service on individuals for bankruptcy.
CPR Part 6
6.3 & 6.9: Service rules generally.
6.17: Certificate of Service requirements.
6.15: Alternative service (Crave Leave).
4️⃣ Serving a Statutory Demand on a Company
✅ What the Law Requires
Serve at the company’s registered office address as shown on the Companies House register.
Not at a trading address, shopfront, or branch office (unless that is also the official registered office).
📑 Insolvency Rules 2016, r.6.9 — “A document may be served on a company by leaving it at or sending it by post to the registered office…”
✅ Registered Office Issues
Key practice risks:
Some companies use a third-party accountant’s office as their registered office.
Directors may claim they never received it if mail handling is poor.
Tracenet’s approach:
We verify the current Companies House entry on the day of service.
Our server attends in person, documents the building name, suite number, who accepted it, or if left through the secure letterbox.
✅ Virtual Offices & Dormant Companies
Many companies use virtual addresses. If no staff are present, the server must evidence that it is the official address and follow practical steps:
Record signage and building details.
Use secure letterbox or deliver to a reception with name noted.
Issue a clear Certificate of Service.
✅ Practical Steps for Process Servers
Always take time-stamped photos (where allowed).
Note any receptionist or mailroom staff names.
Keep a log for the Statement of Service.
Confirm no alternate registered office has been filed at short notice.
5️⃣ Serving a Statutory Demand on an Individual
✅ Legal Requirements for Personal Service
Must be served personally — handed directly to the debtor or left in their presence if they refuse.
📑 CPR 6.5: Defines personal service.
📑 CPR 6.17: Certificate of Service must specify how, where, when, by whom.
✅ Debtor Evasion & Substituted Service
When the debtor dodges:
Multiple genuine attempts must be made at different times/days.
A Letter of Appointment can be posted through the letterbox to warn of next attempt.
If personal service remains impossible, your solicitor must apply for Crave Leave under CPR 6.15.
✅ Mistakes to Avoid
❌ Dropping it through the letterbox immediately — unless authorised by a court.
❌ Handing it to a family member — not valid personal service.
❌ Using post only — courts routinely dismiss this unless agreed or ordered.
6️⃣ What Proof of Service Must Include — For Each
✅ Companies:
Certificate of Service signed by the process server.
Precise registered office address, date/time, method.
Statement of Truth confirming the facts.
✅ Individuals:
Certificate of Service or sworn Affidavit if contested.
Detailed log if multiple attempts.
Statement of Attempts if Crave Leave was needed.
7️⃣ Advanced Pitfalls and Real Practice Tips
Pitfall 1:
Serving a company at a former registered office — common with dissolved or shell companies.
✅ Solution:
Always check Companies House on the day.
Pitfall 2:
Serving a director personally instead of the company.
✅ Solution:
Serving the director does not count as serving the company — do both if needed.
Pitfall 3:
Debtor changes address mid-process.
✅ Solution:
Tracenet performs same-day tracing where suspicious. We update clients immediately to avoid wasted attempts.
8️⃣ Real-World Example — Company & Director Compared
Scenario:
A creditor instructs Tracenet to serve a statutory demand for £85,000 against ABC Ltd and its director under a personal guarantee.
Company:
Tracenet verifies the registered office via Companies House, attends in person, records receptionist’s name, leaves the demand securely and photographs it in situ and files a Certificate of Service within 24 hours.
Director:
Debtor evades three visits. Our server confirms via neighbours that he still lives there and subsequently leaves a Letter of Appointment and On the fourth attempt, the debtor attends the appointment and service is achieved at 7 AM at the front door. Both Certificate of Service and Statement of Attempts are filed with the solicitor.
Result:
When the debtor’s solicitor later claims non-receipt, both the winding-up and bankruptcy petitions proceed unhindered due to bulletproof evidence.
9️⃣ Extended FAQs
1️⃣ Where must I serve a company’s statutory demand?
Only at its registered office as shown on Companies House.
2️⃣ Can I serve a director instead of the company?
No — that does not legally serve the company.
3️⃣ What if the company changed address?
Always check Companies House on the service day. If out of date, consult your solicitor.
4️⃣ How should I serve an individual?
Personally, handing it directly to them — not to a family member or neighbour.
5️⃣ What if the debtor refuses to accept?
A process server can record this and courts will usually accept it as valid personal service.
6️⃣ Can I post it to an individual?
Only with court permission for alternative service.
7️⃣ What is Crave Leave?
Permission from the court to use alternative service when personal service has genuinely failed.
8️⃣ What documents prove service?
A Certificate of Service for straightforward cases; a Statement of Attempts and sworn Affidavit if challenged.
9️⃣ How fast should proof be filed?
Immediately — Tracenet returns Certificates within 24 hours.
🔟 Who signs the Certificate?
Only the process server who did the actual service.
1️⃣1️⃣ Can I serve at a shop if the company has no proper office?
No — you must serve at the registered office or apply for directions if unusual.
1️⃣2️⃣ What if the debtor is abroad?
Extra steps apply — consult your solicitor for international service under the Hague Convention.
1️⃣3️⃣ How do I instruct Tracenet?
Call 0800 048 5684 or request a fixed-fee quote online.
1️⃣4️⃣ What happens if service is wrong?
Your statutory demand may be set aside and your petition rejected.
1️⃣5️⃣ Why not serve it myself?
A professional process server reduces mistakes, documents everything correctly, and stands up in court if challenged.
Conclusion and Why Choose Tracenet Legal Services
Serving statutory demands properly — and proving it with clear, compliant evidence — is vital to protect your client’s legal position and avoid costly setbacks.
Tracenet Legal Services is trusted by solicitors and insolvency practitioners nationwide to handle statutory demand instructions expertly. We ensure companies and individuals are served correctly, documents are watertight, and your next steps are protected.
👉 For a step-by-step breakdown, see our page: How to Serve a Statutory Demand.
Welcome to Tracenet Legal Services. Since 2015, we have managed and effected the service of thousands of Statutory Demands upon debtors across the Country.
We are a multi-award-winning and industry-leading UK Process Server of Statutory Demands, providing Business-to-Business Support, Litigation, and Insolvency Support Services to UK Debt Recovery professionals and Legal Teams.
If you need assistance in serving a Statutory Demand upon an Individual or Company, please call us on 0800 048 5684 or contact us for a fixed fee, Nationwide service.
We serve Statutory Demands, Nationwide.
Telephone 0800 048 5684 or Request a Quote
Useful Weblinks
Comentarios