Last year alone, The MCA has performed a Strike Off for several companies. However, it is not the end of the company’s story. All you have to do is know how to revive a Struck off company.
In the last few years, the MCA (Ministry of Corporate Affairs) have strike-off several Private limited Companies. The reason for company strike-off has ranged from irregularities in the functionality, Insolvency or bankruptcy issue to failure to file MCA Annual Returns. As a result, the director disqualification has also gone up. How to revive a struck off Company? Well, through this blog, we are going to answer this very question.
Struck of Company Revival
When the company is closed i.e. its name is removed from the MCA registry, the directors are disqualified as well. Therefore, if you are going to revive your company, you are going to need a whole new board of directors as well. With this introduction; let us proceed with the process to clear company strike-off. Fortunately for you, there are only two steps to do so:
- Hiring of the new directors of the company: There is a way to clear the director disqualification. However, when the company itself is closed, there is no point at this moment. The Registrar of Companies readily accepts the application to hire new directors of the company. However, it can create issues with the role check courtesy of company strike off. That being said, there are things that can be handled in the back end that allows director application acceptance.
- Application to the NCLT: You must file an application to the NCLT or National Company Law Tribunal to get the status of your company to go from being Strike-Off to Active. It is matter that only a Registered and practicing Chartered Accountant, Cost Accountant Company Secretary can handle as they are the ones who are going to appear before the tribunal. Therefore, Companies looking for reactivation should file FORM 12 or Memorandum of Appearance giving the right to CA, CS or Cost Accountant to represent them. The Format of the said Form is Given Below:
(See rule 45)
Memorandum of Appearance
National Company Law Tribunal.........Bench
In the matter of.................petitioner
(C.P NO...........of 20...........)
Please take notice that I, ABC, Company Secretary in practice/ practicing Chartered Accountant/ Practicing Cost Accountant, duly authorised to enter appearance, and do hereby enter appearance, on behalf of petitioner/opposite party/Registrar/Regional Director/Government of............... in the above-mentioned petition.
A copy of the resolution passed by the Board of Directors authorising me to enter appearance and to act for every purpose connected with the proceedings for the said party is enclosed, duly signed by me for identification.
Enclosure: As aforesaid Tele No.
Documents required to Active Company Strike off
In order to activate a struck off company or opening a closed company, following documents are required to be submitted to the NCLT along with form 12. These documents must be duly attested (affixed with a company seal) and signed by the authorised signatory or the Company Director (Even disqualified one). Additionally, you need to prepare the NCLT documentation to change the status of the company from Strike-Off to Active on 2 green sheets and one white sheet:
- Form 9 which is certificate of Incorporation of the private limited company
- The reason as to why the company strike-off happened
- A copy of the notice
- The master data from the MCA
- Memorandum of Association
- Articles of Association
- MCA return filing of the previous year.
- A board resolution Authorising the signatory
- A fee of INR 2500/- through either demand draft (DD) or challan paid in favour of Pay and Accounts Officer of Ministry of Corporate Affairs.
The professional has to present himself before the NCLT with the aforementioned documents. There are going to be subsequent hearings is the situation requires it. Once all the documents and the presentation satisfy the National Company Law Tribunal, the status of company is activated. Consequently, the DIN (Director Identification Number) activation or removal of director disqualification can then be started.
Registrationwala can provide you best services for restart a closed company. For more information, you can consult with our experts.