What to do for Revival of Struck-Off Companies in India: Legal Steps, Clarity & Compliance Guide

A When a company is "struck off" by the Registrar of Companies (ROC), its name is removed from the Register of Companies and it ceases to exist as a legal entity. This is different from winding up, as the company cannot continue operations until its name is restored on the register.

A Companies are typically struck off for reasons such as:
• Failure to file financial statements or annual returns for a continuous period (usually three years)
• Failure to commence business within one year of incorporation
• Not carrying on any business or operation for two consecutive financial years without applying for dormant status
• Subscribers not paying the subscription amount and not filing the declaration within 180 days of incorporation
• Failure to obtain a commencement of business certificate within one year of incorporation
• Directors not declaring that all subscribers have paid for their shares within 180 days

A "Struck off" is a summary procedure for defunct companies, involving removal of the company's name from the register. "Wound up" is a formal legal process involving liquidation of assets and distribution to creditors and shareholders.

A Yes, a struck-off company can be revived by making an application to the National Company Law Tribunal (NCLT).

A The process generally involves:
• Filing an application with the NCLT within three years from the date of the strike-off order
• Demonstrating sufficient cause for revival
• Providing evidence of the company's operations or reasons for inactivity
• Submitting required documents and paying prescribed fees
• Appearing before the NCLT for hearings
• Complying with the NCLT's order for revival (if granted)

A Documents typically include:
• Application to the NCLT
• Copy of the strike-off order
• Financial statements and annual returns (if applicable)
• Evidence of business operations or reasons for inactivity
• Affidavits from directors
• Any other documents as required by the NCLT

A The application for revival must be filed with the NCLT within three years from the date of the strike-off order.

A If the NCLT approves the revival, the company's name is restored to the Register of Companies and it resumes its legal existence. The company must then file all pending annual returns and other compliances.

A The NCLT considers factors such as whether the company was genuinely carrying on business or had reasonable cause for inactivity, any outstanding liabilities, whether revival is in the interest of justice and equity, and compliance with legal requirements.

A If the company was struck off due to non-filing of returns, filing all pending returns and paying any applicable penalties is usually a prerequisite for revival.

A The fees are prescribed by the NCLT and are subject to change.

A The revival process can take several months, depending on the NCLT's workload and the complexity of the case.

A Generally, no. The application for revival must be made within three years of the strike-off order. However, the NCLT has discretionary powers and in exceptional circumstances, might consider applications beyond the three-year limit. It is best to consult with a legal professional.

A Upon revival, the company's assets and liabilities are restored, and it resumes its legal existence as if it had not been struck off.

A You can check the status of a company on the MCA website.

A Winding up is a more formal process involving liquidation of assets and distribution to stakeholders.

A Generally, no, as it has ceased to exist legally. However, liabilities incurred before the strike-off may still be pursued against directors or promoters in certain cases.

A The bank accounts are usually frozen.

A You will need to provide the bank with the NCLT order for revival.

A Directors may face certain disqualifications.

A Ensure timely filing of financial statements and annual returns, and comply with all legal requirements.

A A professional can assist with the preparation and filing of the necessary applications and documents for revival.

A Challenges can include proving sufficient cause for revival, dealing with legal complexities, and managing the NCLT process.