WHO CAN APPLY FOR DORMANT COMPANY STATUS?
– Company for a future project and has no signification accounting transactions
– Company holds an assets or intellectual property and has no signification accounting transactions
1. “Significant Accounting Transaction” means any transaction other than—
2. Inactive Company means a company which
PROCEDURAL REQUIREMENTS FOR OBTAINING DORMANT STATUS
1. Hold Board Meeting to call EGM and to Authorize the director to make application for Dormant with ROC.
2. Obtain approval of shareholders by passing special resolution or obtaining consent of at least of 3/4th shareholders in value.
3. After obtaining approval, e-form MGT-14 must be filed with ROC
4. Company will make an application in Form MSC-1 along with fee as may be prescribed
|Application made||Other than OPC & Small company||OPC & Small company|
|By a company having an authorized share capital of:
a) Up to Rupees 25,00,000
b) Above Rupees 25,00,000 but up to Rupees 50,00,000
c) Above Rupees 50,00,000 but up to Rupees 5,00,00,000
d) Above Rupees 5,00,00,000 but up to Rupees 10 crore or more
e) Above Rupees 10 crore
|By a company limited by guarantee but not having a share capital||2,000||N/A|
ELIGIBILITY CONDITIONS FOR A COMPANY TO FILE FOR DORMANT STATUS
Company shall be eligible to apply, if-
(i) no inspection, inquiry or investigation has been ordered or taken up or carried out against the company
(ii) no prosecution has been initiated and pending against the company under any law
(iii) the company is neither having any public deposits which are outstanding, nor the company is in default in payment thereof or interest thereon
(iv) 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
(v) there is no dispute in the management or ownership of the company and a certificate in this regard is enclosed with Form MSC-1
(vi) 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
(vii) the company has not defaulted in the payment of workmen’s dues
(viii) the securities of the company are not listed on any stock exchange within or outside India.
The Registrar shall, after considering the application filed in Form MSC-1, issue a certificate in Form MSC-2 allowing the status of a Dormant Company to the applicant.
CONVERSION OF DORMANT COMPANY INTO ACTIVE COMPANY
1. An application, for obtaining the status of an active company shall be made in Form MSC-4.The MSC-4 should be accompanied by the return Form MSC-3 of the Dormant Company.
Provided that the Registrar shall initiate the process of striking off the name of the company if the company remains as a dormant company for a period of consecutive five years.
2. After considering the application filed, the Registrar can approve the application and issue a certificate in Form MSC-5, allowing the status of the Dormant Company to be an Active Company.
Disclaimer clause : The information shared above is true and correct to the best of our knowledge. All statements /recommendations are made without guarantee on the part of the author or publisher