Meaning of Dormant Company
A Company which is formed and registered under Companies Act for a future project or to hold an asset or intellectual property and has no significance accounting transaction, such a company is an inactive company may make an application to application to Registrar of Companies for obtaining status of dormant Company.
Inactive Company – Means a Company which has not been carrying on any business or operation or has not made any significant accounting transition during the last 2 financial year or has not filed financial statements and annual return during the last two financial years.
Significance Accounting Transaction- Means any Transition Other than :
- Payment of Fee by a Company to Registrar
- payment made by it to fulfill the requirements of Companies Act or other laws
- Allotment of shares
- payment for maintenance of its office and records
Application for Obtaining Status of Dormant Company :
#Obtaining Digital Signature Certificate (DSC) of any Director
# Pass Board Resolution for authorizing a Director to make application to ROC for obtaining status of dormant company
#Pass Special Resolution at EGM for authorization for obtaining status of dormant Company
#File MGT-14 to ROC for Special Resolution
#File MSC 1 for application to ROC for Obtaining the status of dormant Company
Mandatory Documents to be attached with form MSC 1:
- Copy of Resolution Authorizing application
- Copy of Special Resolution
- Auditors Certificate
- Statement of Affairs duly certified by Auditor
- Consent of Lender , if any loan is outstanding
- Certificate Regarding No Dispute in the Management or Ownership
- NOC from Regulators , if company is regulated by such authority
