Introduction
In India, companies that fail to comply with statutory requirements may face the risk of being struck off from the Registrar of Companies (RoC). This action effectively dissolves the company, and its assets are deemed to be vested with the government. However, the law provides an opportunity for companies to revive and restore their status. If your company has been struck off and you wish to revive it, there are critical steps you must take to ensure a successful restoration. In this blog, we will outline the crucial steps to revive a struck off company.
1. Assess the Reason for Strike Off
The first step is to determine the reason for the company’s strike off. Common reasons include non-filing of statutory returns, non-compliance with annual filings, or the company being inactive. Understanding the cause will help you address the underlying issues during the revival process.
2. Obtain Professional Advice
Reviving a struck off company involves legal complexities and procedural formalities. It is advisable to seek professional advice from a qualified company secretary, chartered accountant, or legal expert experienced in company law matters. They can guide you through the process and ensure compliance with all necessary regulations.
3. Gather Relevant Documents
Collect all the required documents related to the struck off company, such as the Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), and financial statements. These documents will be crucial for the revival process.
4. Apply for Restoration with the National Company Law Tribunal (NCLT)
To revive a struck off company, you must file an application for restoration with the National Company Law Tribunal (NCLT) within the jurisdiction where the registered office of the company was located. The application must be accompanied by the necessary affidavits and documents, along with the prescribed fee.
5. Publish Public Notices
As part of the revival process, you must publish public notices in leading newspapers, both in English and the local language, informing the public about the company’s intended restoration. This step allows creditors and stakeholders to raise objections, if any, within the specified time frame.
6. Obtain No Objection Certificates (NOCs)
If there are any outstanding dues or liabilities, obtain No Objection Certificates (NOCs) from creditors, employees, or any other concerned parties. This is essential to demonstrate that the revival of the company will not adversely affect their interests.
7. File Pending Returns and Documents
To restore the company’s active status, you must file all pending statutory returns, annual filings, and other necessary documents with the RoC. Compliance with these requirements is crucial for a successful revival.
8. Attend NCLT Hearings
After filing the restoration application, you will need to attend NCLT hearings for the company’s revival. It is essential to be well-prepared with all the required documents and legal representation during these hearings.
9. Obtain NCLT Order
If the NCLT is satisfied with the application and after considering any objections, if applicable, it will issue an order for the restoration of the struck off company. This order is a crucial legal document and should be duly preserved.
10. Pay Outstanding Fees and Penalties
As part of the revival process, you may be required to pay outstanding fees, penalties, or any other dues to the government authorities. Ensure timely payment to avoid any further complications.
Conclusion
The revival of a struck off company is a challenging and meticulous process that requires adherence to legal procedures and strict compliance with the relevant laws. By taking these critical steps, seeking professional guidance, and fulfilling all necessary requirements, you can increase the chances of successfully restoring your company’s active status. Remember to assess the reason for the strike off, gather all relevant documents, apply for restoration with the NCLT, publish public notices, and obtain necessary NOCs. With determination and perseverance, you can bring your company back to life and resume its business activities.
