Revival of Stuck Off Companies

A company can get struck off from the records of the Registrar of Companies under two modes:

1. By Sou-moto order of ROC

Under Section 248(1) of the Companies Act, 2013, the Registrar of Companies can strike off the name of a company on its own for the following reasons:

• Not being operational for two straight previous Financial Years having not applied for defunct status under section 455.
• Not commencing business for 1 year from the date of incorporation.
• If the ROC believes that the company is non-operational after making an inspection.

2. By an application made by Company

A company can make an application for removal of its name from the records of Registrar in Form STK-2.

• Approval from the concerned regulatory authority is required before applying for strike off.
• Approval of more than 75% of shareholders in terms of capital is required.

Procedure for revival of strike off companies as per Companies Act, 2013

1.Filing of appeal before NCT

An appeal can be filed within 3 years of the Registrar’s Order by the aggrieved company.

2.Application to tribunal for initiation of the revival purpose

the members of the Company or the creditors of the Company or the Company itself can file an application to the Tribunal to restore the Company’s name, within a period of 20 years from the date of publication of striking off notice in the official Gazette. The Tribunal, after giving an opportunity of being heard to the company, the ROC and other concerned, shall pass the order as it may deem fit.

Process for applying to the Tribunal/Documents Required

  Filing of application in Form No. NCLT-9, along with the following attachments

• Copy of Companies AOA and MOA?
• Director’ List.
• Certified True copy of the Registrar’s order for Strike off.
• Signed Balance Sheet of the company.
• Certified True Copy of the Company’s BR for applying to NCLT for Registration.
• Appeal against Registrar’ order.
• Affidavit verifying petition.
• Copy of proof of application fees paid.
• Memorandum of Appearance.

Frequently Asked Questions

Q. Can a Company apply for revival if its in operations from last few financial Years?

A company has to show that it is operational if its name has been struck off from the records of ROC suo-moto. If it was not operational, then its stand’s little chance of revival.

Q. What can a company do to avoid striking off it has stopped operations for some reason?

A company can apply for dormant status if its is not doing any business in the present but wants to stay in the books of Registrar. A company can apply for dormant status in Form MSC-2.

Q. Can a company get strike off twice?

Yes, a company can get struck off again by the ROC, if it does not comply with the order and file all the belated returns with the ROC.