Revival of Struck Off Companies

The Grounds for Revival of Struck Off Companies

The grounds on which NCLT does the Revival of struck off Companies are as follows:

• The Company holds any immovable property.
• The Company, apart from the Registrar of Companies, has complied with the GST, Income tax, Provident Fund, and such authorities.
• In case there is evidence stating that the Company has an ongoing business as active transactions in the bank statements of the Company.
• The Company is renewing any license on an annual basis and other documents depending upon the circumstances.
• Any document that shows that the Company is ongoing or active and it will be in the public interest to revive the Company.

Benefits of Revival of Struck Off Companies

Have a look at the significant benefits of the revival of struck off companies in India-

• To recover their overdue sum with interest, creditors of such Companies may start an action.
• The Company can be enforced for discharging the Company's liabilities/ obligations, and the liability of every director and officer shall continue.
• If any Company has not filed annual returns or financial statements for any continuous period of three fiscal years, it may disqualify the Directors of such Companies.
• The Registrar may also recommend the prosecutions of the persons responsible for the non-filing of the documents and returns.
• Moreover, five years from the date on which the said Company fails to do so, this disqualification will be the outcome with ineligibility to be appointed in another company or re-appointed.
• The office of the director will/must become vacant in all the companies leading to such disqualification as mentioned above, wherever he is holding the director's post.
• Such a director shall be required to inform the Company concerned about his disqualification even when the disqualification gets removed (under sub-section (2) of section 164) before he is re-appointed or appointed.

The following benefits can be availed if the Promoter Shareholder opt for the revival of the Company's name by taking instant action within the accord of this scheme:

• Such a company can now opt for filling out overdue returns and documents only with a nominal fee of Rs. 300/-, 400/-, 500/- or 600/- which has not filed returns for preceding years. The fees will depend on the case may be and can get the waiver, and additional business fees can commence their actions if so anticipated.
• For imposing penalties on accounts of delay associated with specified forms and returns, no proceedings against the Company and its Officers shall be initiated if overdue documents must be filed within the overall occupancy of the scheme.
• If proceedings or prosecution initiated shall be withdrawn if the scheme's necessities will be obeyed in time.

What is the Process of Revival of Struck Off Companies?

The process of revival of struck off companies is as follows:

• Step 1: Filing of the Application/Petition/Appeal
  An appeal or application must be made in the format of Form NCLT-9 along with a demand draft of Rs. 1000 in favour of Pay and Accounts Officer, Ministry of Corporate Affairs (MCA).
• Step 2: Serving Copy of Petition
  Not less than fourteen days before the date fixed for hearing of the application, a copy of the petition should be served to the Registrar of Companies and such other persons as the Tribunal may allow.
• Step 3: Trials and Hearing by Tribunal
  During the trials and hearings, the Tribunal shall hear the Petitioner and Respondent (ROC- Registrar of Company). It will also take note of the objections received during the proposed dates of the hearing. If it is satisfied after hearing both sides, then it can order the revival of the name of the Company in the record of the ROC.
• Step 4: Order of Tribunal
  The Tribunal makes an order for restoring the name of the Company in the Register of companies. Within 30 days from the order, the applicant should deliver a certified copy of such order to the ROC. The Registrar will publish the copy of the order after receiving it in the official gazette in the name and seal of the Company. Until and unless the Tribunal directs otherwise, the applicant must pay the costs of the appeal or application to the Registrar.
• Step 5: Abiding ROC Orders for Filing
  Within thirty days from the date of order, the Company should file a copy of such order in Form 'INC-28' with the Registrar of Companies.
• Step 6: Publication of Order
  After receiving the certified copy of the order, the Registrar will do the needful consideration and publish the order in the Official Gazette with the name and seal of the Company.
• Step 7: Filing of Pending Documents with ROC
  The Company should comply with the requirements of the Companies Act, 2013 and file pending annual returns and financial statements with the Registrar. They should abide by all the rules made thereunder within such time as may be directed by the Tribunal.

Revival of Struck Off Companies by CFSS-2020

Following the power under Section 248(1)(c) to curb the operations of shells and increase the transparency of Companies, the Registrar of Companies struck off many Companies in 2017, 2018, and 2019. Accordingly, having jurisdictions to date, there have been three tranches of striking off done by the Registrar of Companies (ROC).

Everyone was facing difficulty in reviving their Companies before this date, on account of hefty penalties, elaborated and included in filing annual returns of the Company. However, additional fees on filing yearly returns have been waived off by the government amid widespread Novel Corona Virus after the introduction of the Companies Fresh Start Scheme, 2020 (CFSS-2020). Therefore, many people again have started giving thought to in receipt of getting their Companies revived. (Under Section 252 of the Companies Act, 2013, read with Rule 87A of the National Company Law Tribunal (Amendment) Rules, 2017). Company Fresh Start Scheme (CFSS-2020) covers a golden opportunity to revive your Company without connecting any in-exorbitant or heavy penalties or fees.

Strike Off of Companies Under Companies Act, 2013

In case your company has been struck off from the Register of Companies due to non-filing of annual returns as well as financial statements for a time period of 3 years, you can get it restored. All you need to do is to file a petition in Jurisdictional Bench of National Company Law Tribunal (NCLT) and get your company restored.

Are you worried about the process of filing a petition in the jurisdictional Bench of NCLT? Our professionals at Corpbiz are just one call away.

How Can Corpbiz Assist in Revival of Struck Off Companies?

With a network of professionals such as lawyers, business consultants, CAs, and CS, Corpbiz is striving to help entrepreneurs start, run, grow, and manage their businesses in India. Given below are the reasons why we are trusted by business owners for the revival of struck off companies-

• 10+ Years of Proven Experience in Business Consulting
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• Guidance in Filing NCLT Petitions
• Assistance through NCLT Proceedings
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• Assistance in ROC Filings for Revival of Struck Off Companies
• End-to-end Representation for Successful Revival of Struck Off Companies