Can a company which has revenue from operations in previous year, go in for strike off under section 248 of the Companies Act 2013

The Companies Act 2013 provides for the strike-off of a company that is not carrying out any business activities or has failed to comply with its statutory obligations. Section 248 of the Act specifies the circumstances under which a company may be struck off from the register of companies maintained by the Registrar of Companies. 

Here, we will discuss whether a company that has revenue from operations in the previous year can go in for strike off under section 248 of the Companies Act 2013.

Strike-off under Section 248 of the Companies Act 2013:

Section 248 of the Companies Act 2013 deals with the strike-off of a company from the register of companies maintained by the Registrar of Companies (ROC). 

The provisions are provided for when the ROC can strike off the name of the Company and voluntary application by the Company itself to get its name struck off fro the register.

The section specifies the circumstances under which a company can be struck off from the register by the ROC. According to the section, a company can be struck off if it:

• Fails to commence business within one year of its incorporation;
• Has not carried out any business activities for two consecutive financial years;
• Fails to file its financial statements or annual returns for a period of three consecutive financial years;
• Has not paid its statutory fees or penalties for a period of one year or more;
• Has not maintained its registered office or has failed to respond to the Registrar's notice seeking confirmation of its registered office address.

As can be seen from the above, the section provides for strike-off in cases where a company has not carried out any business activities for two consecutive financial years. This means that a company that has revenue from operations in the previous year cannot be struck off under this section.

A Company can voluntarily apply for strike off under any of the grounds mentioned above.

Revenue from Operations:

Revenue from operations refers to the amount of money earned by a company from its primary business activities. It is the income generated from the sale of goods or services by a company. Revenue from operations is an important metric that reflects the financial health of a company. If a company has revenue from operations, it means that it is carrying out business activities.

Can a company with revenue from operations go in for strike-off?

As mentioned earlier, section 248 of the Companies Act 2013 provides for the strike-off of a company that has not carried out any business activities for two consecutive financial years. If a company has revenue from operations in the previous year, it means that it has carried out business activities during that year. Therefore, such a company cannot be struck off under this section.

However, it is important to note that a company with revenue from operations may still be eligible for strike-off if it fails to comply with its statutory obligations. For example, if a company fails to file its financial statements or annual returns for three consecutive financial years, it can be struck off under section 248 of the Companies Act 2013, even if it has revenue from operations.

Conclusion:

In conclusion, a company that has revenue from operations in the previous year cannot go in for strike off under section 248 of the Companies Act 2013. 

The section provides for strike-off in cases where a company has not carried out any business activities for two consecutive financial years. However, it is important to note that a company with revenue from operations may still be eligible for strike-off if it fails to comply with its statutory obligations. Companies should ensure that they comply with all their statutory obligations to avoid being struck off from the register of companies maintained by the Registrar of Companies.