PROVISIONS UNDER THE ACT

MEANING

Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company.

OR

*An  Inactive  Company,  may  make  an  application  to  the  Registrar  in  such manner as may be prescribed for obtaining the status of a dormant company.

*Meaning of Inactive company

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

A company which has not filed financial statements and annual returns during the last two financial years.

**Meaning of Significant Accounting Transaction

  • any transaction other than—
  • payment of fees by a company to the Registrar;
  • payments made by it 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

***Other Conditions

  • no inspection,  inquiry  or  investigation  has  been  ordered  or  taken  up  or carried out against the company;
  • no prosecution has been initiated and pending against the company under any law;
  • the company is neither having any public deposits which are outstanding nor the company is in default in payment thereof or interest thereon;
  • 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 ;

  • there is no dispute in the management or ownership of the company and a certificate in this regard is enclosed with Form MSC‐1;
  • the company does not have any outstanding statutory taxes, dues, duties payable to the Central Government or any State Government or local authorities etc.;
  • the company has not defaulted in the payment of workmen’s dues;
  • the securities of the company are not listed on any stock exchange within or outside India.
  • A dormant company shall have such minimum number of directors

PROCESS OF FILING FOR DORMANT STATUS

Steps for application for Dormant Status

1. Pass Board Resolution

2. Pass Special Resolution

3. File Form MGT‐14 within 30 days of passing special resolution as per Section 117

4. Filing of form MSC‐1 for application of Dormant Status with Registrar

Certificate from Registrar in form MSC‐2.

Name Last   date   of filling Remark
Nutrazoot Medicare    Private Limited 31/03/2020
  • We cannot file for dormant  status from 01/04/2020 as MGT‐14 as it exceeds 300 days resulting in condonation of delay.
  • However, if there is no significant Accounting Transaction in last 2 financial year and ***other conditons are satisfied we can apply for dormant status form current date.
Shristi Hydroelectricity Private Limited 31/03/2020
  • We cannot file for dormant  status from 01/04/2020 as MGT‐14 as it exceeds 300 days resulting in condonation of delay.
  • However, if there is no significant Accounting Transaction in last 2 financial year and ***other conditons are satisfied we can apply for dormant status form current date.
  • Provided the DIN status of Sushma Rohit Mishra need to be  activated as it is deactivated due to non‐filing of DIR‐3 KYC for which penalty of RS. 5000 shall be levied

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