Dormant status of the Company
The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.
Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year. Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.
Here are some Rules regarding Dormant Company
MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.
MSC 2- Certificate of Registrar- Registrar will issue the Certificate.
MSC 3- Return of Dormant Company- By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.
MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.
MSC 5- Certificate of Application status- In this certificate of Application status is being issued.
There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.
And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.
Want to register a company in India ? Hire #1 business consultant in India – BIATConsultant .