Recently, the Ministry of Corporate Affairs (MCA) has completed striking off many private limited companies that have not filed their financial statements and annual returns on a regular basis with the Registrar of Companies (ROC). The Directors of such strike-off companies were also ruled out from being directors of the company. In this article, we examine the process of striking off clearance or restoring a company that the MCA struck off for failing to file an annual return.
The Ministry of Corporate Affairs (MCA) is calling for strict action against nearly all private companies that have failed to file their annual returns with the Registrar of Companies (ROC). Even last year, MCA struck off lakhs of private companies under section 248(1) of the Companies Act, 2013. The government is still proceeding with the process to clean up the corporate field. On the other hand, it also involves a legal procedure to restore or reactivate the company’s strike.
A private company is struck off when the Removal of the company’s name is done under the Registrar of Companies procedure under Section 248 of The Companies Act, 2013. The Registrar is the responsible person who can strike off a company that has become dormant. Apanyan be restored or revived under the Companies Act, 2013, by an order of the National Company Law Tribunal (NCLT).
Documents to be Submitted
- Form 9 to be prepared
- Reason for the Strike off (From MCA notice)
- Notice copy attachment
- MCA master data
- MOA/AOA copy to be attached
- Last year, the MCA return filing copy was. The newly appointed director in the previous step can file the MCA annual return on behalf of the company.
- Board Resolution for Authorized Signatory
- Incorporation Certificate copy
- Rs 2500/- fees DD challan in the favour of” Pay and Accounts officer, Ministry of Corporate Affairs”
The company has been struck off – what does it mean?
A company is said to be struck off or dissolved when the company is removed from the Companies Register, which means the company cannot conduct business, sell assets, or engage in other business ties. If a company conducts any business after its strike-off, this will lead to a series of legal repercussions, including penalties. A director’s liability can be removed for up to 15 years, and personal liability can be imposed to pay the company’s debts, among other consequences.
Any assets or funds that have not been distributed before the company’s strike-off are shifted to the Crown through ‘bona vaca tia’. The company has assets that need to be preserved. The company has to go through the process of reviving itself. The company is inoperative or does not carry on any business for the two preceding financial years and has not filed any application within such period for obtaining the status of a dormant company under Section 455 of the Act.
OncCompanyompany has been struck off, and the name OncCompanyompany will become available for new companies to register. Therefore, if you wish to restore the company, you must verify the availability of the same name. If it’s not available, you must find a different company name; that’s really serious.
Strike off the Company under the Companies Act, 2013
- Section 248 explains the complete information and the power of the Registrar of Companies to take action against the company before the ROC.
- To restore the company name, it can appeal to the NCLT under section 252.
- Apart from the removal of the names of Companies from the Register of Companies, the Companies Rules, 2016 also carry on with the strike off.
- Rule 87A of the NCLT (Amendment) Rules, 2017 and NCLT Rules, 2016 also address the struck off.
- The striking off of defunct companies can be done under Section 248 of the Companies Act. However, the restoration of the company in the register of Companies can be done under Section 252 of the Companies Act 2013.
The Reasons for a Strike-Off Company
There are various reasons for striking off a company, and here are some reasons. The first reason is that a company is the company first
- The first reason is that if New York fails to commit to registration.
- If the Company fails to carry on its business for two preceding years.
- If the Company failsls to submit or file annual returns and financial statements for a continuous period of 3 years.
- When the directors of the Company fail to file the Form DIR-8 on time.
- Disobedience of relevant provisions of the Companies Act and other legal rules and regulations.
Procedure for the Revival of Strike-Off Companies as per The Companies Act, 2013
Application striking off or reactivating a company, the company, the director of the company, or any member of the company, is not satisfied with the strike-off order of the Registrar under section 248, then the In that case, the member or the company can file an appeal to T. This appeal should be filed within 3 years from the date of the strike-off order.
Check out the procedure for the revival of the strike-off of companies below:
Preparation & Filing Application Under NCLT
The applicant can apply to restore the company name. The procedure can be conducted under Section 252(3). The company can be revived. The Tribunal was structured. 2016.
Rule 87A(2) – Submission of the Petition with ROC
The application for reviving the company copy must be served on the ROC and other parties in accordance with the NCLT rules, either in person or by post, and it must be done within 14 days from the hearing.
File documents with Applimust in NCLT-9
The applicant must submit a list of documents as per Annex B of the NCLT Rules, 2020, for reviving the Company.
Hearing of the petition by NCLT: Rule 87A (3)
The NCLT should hear from both sides (Roc and Appli ). Once the hearing is over, if the NCLT is satisfied, it can restore the company’s name to the list of the ROC.
File the NCLT order with the ROC.
After receiving the order for restoration of the company’s name, it will direct the applicant to deliver a certified copy of the order to the ROC, and this process must be completed within 30 days after receiving the order.
Directions by NCLT under rule 87A(4)
After submitting the order to the ROC, the ROC must issue the order in the official gazette. The applicant then has to pay the fee to the Registrar as per the s. After this procedure, the Company needs to file all its pending financial statements and pay annual returns with the Registrar, as well as pay the fee as per the NCLT.
Publish the order in the Official Gazette.
Finally, the ROC must publish the order restoring the company in the official gazette.
The main aim of the Ministry is to become stringent and take action against numerous companies for non-filing and non-compliance with the Registrar, in order to rebuild a corruption-free economy. This is a commendable initiative taken by the government, which helps clean up the entire corporate structure and prevent tax evasion. In conclusion, striking off such companies also helps prevent money laundering and strengthens the corporate sector in India.
