The Revival of Struck Off Company is indeed a process in which a company that was struck off by the Registrar of Companies can be revived. Of course, This is a substitute for winding up the business. Of course, it is possible for a period of twenty years following the strike off date.
The revival of a struck off company is a crucial process in the corporate landscape of India. Companies that have been struck off the register face significant legal and operational challenges. Empower Legal, a prominent corporate law firm, specializes in assisting companies in this complex revival process. In this article, we will explore the concept of striking off, the consequences it entails, and the legal provisions and procedures for reviving a struck off company.
Understanding the concept of striking off
Striking off refers to the process of removing a company’s name from the official register maintained by the Registrar of Companies (RoC). This action signifies the loss of legal existence for the company. Striking off can occur due to various reasons, such as non-compliance with statutory requirements, long-term inactivity, or failure to file annual returns and financial statements.
Consequences of company strike off
When a company is struck off, it ceases to exist as a legal entity. The implications of this are far-reaching. The company loses its ability to enter into contracts, sue or be sued, or undertake any business activities. Additionally, directors and shareholders may face personal liabilities for the company’s obligations and may be disqualified from holding similar positions in other companies.
Legal provisions for company revival
In India, the revival of a struck off company is under the governance of the Companies Act, 2013, and the procedures set by the National Company Law Tribunal (NCLT). These provisions outline the necessary steps and requirements for the revival process, ensuring transparency and accountability.
Grounds for Revival of struck off company
The grounds for revival of a company are:
One of the main grounds for the restoration of a company is that it was formed for general public interest. In addition, The company would not have been established as a shell without being in compliance with various laws. Accordingly, This is a legal basis for the restoration of a company. In fact, it has been used in many cases in the past.
Another reason for the restoration of a company is that its members were disqualified by the Registrar and it was not in compliance with the Companies Act. This is another legal basis for the restoration of a company and it is applied in many cases during recent times.
Is your company has been struck off on the ground of non-compliance with the Registrar of Companies? In any case, You can be restore it by filing an appeal or application to the Registrar in Form No. NCLT 9 and providing a demand draft of 1000 rupees as fees with the petition.
To initiate the revival process, you must file an application in the NCLT. The application should provide valid reasons justifying the revival, such as rectifying inadvertent non-compliance, resolving legal disputes, or reinstating business operations. The NCLT carefully evaluates each case before deciding on the revival.
Methods for Revival of struck off company
Do you need Revival of struck off company? Firstly, You must first file an appeal or application to the Registrar of Companies. Moreover, You can do this if the company has been struck off. This is because of non filing of financial statements and annual returns for a continuous period of three years. Resolve it, If the company has been disqualified by the Registrar or on a number of other grounds as a matter of fact.
Who Can Apply for the Revival of the Company?
Firstly, You can apply to the Registrar of Companies for revival if you are a member or creditor of the Company. The applicant can also be a workman, or someone who has an employment in the Company.
Revival procedure
The revival procedure involves a series of steps and interactions with the NCLT. Firstly, the applicant must file an application with the necessary documents, including financial statements, board resolutions, and any pending legal proceedings related to the company. The NCLT then examines and verifies the application to ensure compliance with legal requirements.
After the completion of the application, you will get a hearing schedule before the NCLT. During the hearing, the applicant presents their case, and the NCLT evaluates the merit of the revival request. The NCLT’s decision is based on factors such as the company’s willingness to settle outstanding liabilities, compliance history, and prospects of revival.
Conditions and requirements for revival
The successful revival of a struck off company is subject to fulfilling certain conditions and requirements. Clearing outstanding liabilities, including taxes, loans, and other dues, is a fundamental prerequisite. Additionally, the company must demonstrate a commitment to comply with all legal and regulatory obligations, such as filing annual returns, conducting regular audits, and maintaining proper corporate governance practices.
Role of professionals in company revival
Given the intricacies involved in the revival process, engaging a corporate law firm like Empower Legal becomes crucial. Corporate law firms possess the expertise and experience to navigate the legal complexities and ensure a smooth revival. These professionals provide expert advice, guide companies through the necessary procedures, and advocate for their clients’ interests before the NCLT.
Revival of struck off Challenges and complexities
Reviving a struck off company is not without its challenges. Legal disputes, pending litigation, and unresolved financial matters can complicate the revival process. Resolving these issues requires meticulous attention to detail, effective negotiation skills, and extensive legal knowledge. Additionally, reinstating assets, contracts, and business relationships requires careful coordination and diligent efforts.
Benefits of reviving a struck off company
Despite the challenges, reviving a struck off company offers several benefits. Firstly, it restores the legal existence and credibility of the company, enabling it to resume business operations. Revival also allows the company to safeguard its brand, intellectual property, and market position, which are otherwise at risk after striking off. Moreover, revived companies can protect the interests of their directors and shareholders and maintain their financial stability.
Case studies of successful revivals
Several companies have successfully revived their operations after being struck off. One such example is a Pvt. Ltd., a manufacturing company that faced strike off due to inadvertent non-compliance. Through diligent efforts, that Pvt. Ltd. rectified the compliance issues, settled outstanding dues, and successfully revived its business operations.
Another noteworthy example is a software development firm that encountered legal disputes and financial difficulties leading to strike off. With the assistance of Empower Legal, that software development firm successfully resolved the disputes, paid off outstanding debts, and revived its operations, becoming a thriving software solutions provider once again.
Revival of struck off Trials and Hearing by Tribunal:
The Tribunal will hear the Appeals by summoning both parties to a trial and hearing. NCLT will hear the both parties and consider and their arguments. Meanwhile, Is the Tribunal satisfied after hearing both sides? Then, it will order the company’s name to be restored in the ROC records.
Rajendra Law Office is the Best Lawyers for the Revival of Struck Off Company
The legal team at Rajendra Law Office has been helping clients with the revival of their struck-off companies for over three years. Lastly, They have extensive experience in addressing the issues involved with the Registrar of Companies and other government authorities.
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We have helped revive over 1.63 lakh companies, with a lot of success. We can help you revive your company with ease and speed. Contact us today! We look forward to hearing from you.
Conclusion
The revival of a struck off company in India is a critical process that requires a comprehensive understanding of legal provisions, diligent compliance, and expert guidance. Empower Legal, a leading corporate law firm, specializes in assisting companies in this revival journey. By taking timely action, engaging professionals, and adhering to legal requirements, struck off companies can regain their legal existence and continue their business operations. Empower Legal’s expertise in company revival makes them a valuable partner for companies seeking to navigate the complexities and challenges associated with revival.
