Article explains How to Voluntarily Obtain Status of Dormant Company-Steps, Company Which can be declared Dormant By Registrar, Steps to apply for ACTIVE COMPANY Status by Dormant Company, Documents required for obtaining status of Dormant Company, Compliances to be done by a Company after Obtaining Status of Dormant Company and Companies eligible to apply for Obtaining Status of Dormant Company.
A company or an inactive company* that has not made any significant accounting transaction** can file an application to the Registrar in a prescribed manner to obtain the status of a dormant company. A Dormant 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 statements and annual returns during the last two financial years;
**Significant accounting transactions would mean transactions other than the basic procedural transactions i.e the payment of fees by a company to the Registrar and also payments to fulfil the requirements of this Act or any other law, allotment of shares to fulfil the requirements of this Act and payments for maintenance of its office and records.
A Company may make an application for obtaining the Status of Dormant Company to Registrar in Form MSC-1 on payment of such fees as provided in Companies (Registration Offices and Fees) Rules, 2014, after passing a special resolution to this effect in the general meeting of the company or after issuing a notice to all the shareholders of the company for this purpose and obtaining consent of at least 3/4th shareholders (in value).
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.
The Company can check the status in the register of dormant company maintained by Registrar.
A Company which has not filed Financial Statements or Annual Returns for two Financial Years consecutively, the Registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant companies.
A Dormant Company may make an application for obtaining the Status of Active Company to Registrar in Form MSC-4 on payment of such fees as provided in Companies (Registration Offices and Fees) Rules, 2014 and application shall be accompanied by a return in Form MSC-3 in respect of the financial year in which the application for obtaining the status of an active company is being filed.
The Registrar shall, after considering the application filed in Form MSC-4, issue a certificate in Form MSC-5 allowing the status of Active Company to the applicant.
1. A Dormant Company shall maintain Minimum Number of Directors.
2. A Dormant Company shall file a “Return of Dormant Company” audited by Chartered Accountant in practice in Form MSC-3 within thirty days from the end of the each Financial Year.
3. As per Section 173(5), A Dormant Company is required to convene at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days.
The Company Shall be eligible to apply for Obtaining Status of Dormant Company only if-
Provided that if there is any outstanding unsecured loan, the company may apply only after obtaining concurrence of the lender and enclosing the same with Form MSC-1;