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Article explains Difference Between Dormant And Strike Off Companies under Companies Act, 2013-

Meaning Section 455 of the Companies Act 2013 deals with the provisions of Dormant Company.

As per Companies act Dormant Company means a company which is formed or registered for the below objectives:

1. Incorporated for the future project;

2. Hold an asset or intellectual property;

3. Has no significant transaction;

4. Is an inactive company. (inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years , or has not filed financial statement and annual returns during the last two financial years;) Such Company can file an application with a registrar to obtain the status as Dormant Company.

Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.
Eligiblity 1. No inspection, inquiry or investigation has been ordered or taken up or carried out against the company

2. No prosecution has been initiated and is pending against the company under any law

3. The company is neither having any public deposits which are outstanding nor the company is in default in payment thereof or interest thereon

4. The company is not having any outstanding loan, whether secured or unsecured, provided that if there is any outstanding unsecured loan, the company may apply under this rule after obtaining concurrence of the lender and enclosing the same with Form MSC-1

5. There should not be any dispute in the management or ownership of the company (a certificate in this regard is enclosed with Application)

6. The company does not have any outstanding statutory taxes, dues, duties etc. payable to the Central Government or any State Government or local authorities etc.

7. The company has not defaulted in the payment of workmen’s dues

8. The securities of the company are not listed on any stock exchange within or outside India

1. Companies that are not operating or not carrying on any business for the last two years from the date of application or,

2. Companies which are not operating or not carrying on any business within one year of incorporation and,

3. A company having Nil assets & liability. &     Not eliglible     1. The company is incorporated after 2nd November 2018, but it has not filed 20A.

One year is not completed since incorporation.

2. For ongoing company i.e having business transactions in last 1-2 years.

3.  DIN is deactivated.

4.  Any director is disqualified.

5. The company has already received notice from ROC of strike off.

6.Any ongoing litigation are pending.

Section Section 455 of the Companies Act 2013 Section 248 of the Companies Act 2013
Forms eForm MSC-1 MGT-14 & STK-2
1. Certified true copy of board resolution ratifying the proposal for obtaining dormant status

2. Certified true copy of special resolution ratifying the proposal for obtaining dormant status
3. Auditor’s certificate

4. Statement of affairs duly certified by Chartered Accountant or Auditor(s) of the company

5 Copy of approval or NOC from the regulatory authority in case the company is regulated by such authorit

6. Company’s latest financial statement and annual return are mandatory to be attached with the application in case the same is filed to Registrar

7. Consent of the lender in case any loan is outstanding

8. Certificate w.r.t no dispute in the management or ownership

9. Any other optional attachment(s) as may deem fit.

1. Indemnity Bond duly notarized by all directors (in Form STK 3).

2. A statement of liabilities comprising of all assets and liabilities of the companies (certified by a Chartered Accountant).

3. An affidavit in Form STK 4 (by all directors of the company).

4. CTC of Special Resolution  (duly signed by every director of the company).

5. A statement concerning any pending litigations with respect to the company.

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