Company Dormancy

Company Dormancy

How to register as Dormant Company?
A Limited Company or Private Limited Company or One Person Company can enlist itself as an inactive organization and benefit from certain exceptions from required compliances. Inactive organization status is mainly for organizations enlisted to hold assets or intellectual property and have no critical accounting exchanges.

What is a dormant company?
As per the Companies Act, 2013, "Where an organization is shaped and registered under this Act for a future venture or to hold an asset or intellectual property and has no huge accounting exchange, such an organization or an inactive organization may make an application to the Registrar in such way as might be endorsed for getting the status of a dormant company.

  • Clarification— for the motivations behind this segment,—
  • 1. "Inactive organization" signifies an organization that has not been continuing any business or activity, or has not made any huge accounting transaction during the last two financial years, or has not recorded filed reports and yearly returns during the last two financial years;
  • 2. “Significant accounting transaction” signifies any exchange other than—
  •     payment of fees by an organization to the Registrar;
  •     payments made by it to satisfy the prerequisites of this Act or some other law;
  •     allotment of shares to satisfy the necessities of this Act; and
  •     payments for the upkeep of its office and records;
  • Therefore, any company that wants to be just an asset company or has no important business activities can apply and turn into a dormant company.

Eligibility for registering as
A Dormant company

  • A company can apply for, and turn into a dormant organization, only if the given criteria’s are satisfied:
  • 1. No review, request, or investigation has been requested or taken up or accomplish against the organization;
  • 2. No prosecution has been started and forthcoming against the organization under any law;
  • 3. The organization is neither having any public deposits which are remarkable nor the organization is in default in installment thereof or interest consequently;
  • 4. The organization isn't having any outstanding loan, whether secured or unsecured: Provided that if there is any extraordinary unsecured loan, the company may apply under this rule after getting the acceptance of the moneylender and enclosing the same with Form MSC-1
  • 5. There is no contest in the administration or responsibility for organization and an endorsement in this regards is enclosed with Form MSC-1;
  • 6. The organization doesn't have any exceptional legal assessments, duties, obligations, etc. payable to the Central Government or any State Government or nearby specialists, etc.
  • 7. The organization has not defaulted in the installment of laborers' contribution;
  • 8. The protections of the organization are not recorded on any stock trade inside or outside India.
Eligibility for registering
Process for registering

Process for registering as
A Dormant company

To get the status of the dormant company, here are the following steps must be followed by the company:

Step 1. To start with, you call for a board meeting to fix the time and scene to assemble a remarkable general conference of the individuals to pass a special resolution (at least 3/4th in value). The chief can make an overall application for dormant status with ROC in this executive gathering. You should give a notification for the public gathering. Also, you should employ a Chartered Accountant or Auditor to give a testament in this regular gathering.

Step 2. Then, the extraordinary general meeting takes place. At that point, an exceptional goal is passed. The precise of the individual choice and the notification of extraordinary public meeting having a logical assertion. This is because an attachment to e-form MGT-14 is documented with the ROC.

Step 3. Next, the organization should document an application in structure MSC-1 enclosing the following attachments to acquire a dormant status for the organization:

How much to pay for
Company Dormancy ?

Company Dormancy would vary from INR 5499/- to INR 7999/- depending upon the plan you choose.

Gold Plan
Gold Plan
₹ 9999/-   ₹ 6499/-
Package Includes
  • ✓ Documentation for dormancy documents
  • ✓ Auditor certificate
  • ✓ Submission of dormant form
  • ✓ Dormant status on MCA
  • ✓ Delegated Professional to coordinate exclusively to your case at a time.
  • ✓ ROC Filing for Dormant company for 1 year
Click here to Start  
Silver Plan
Silver Plan
₹ 8499/-   ₹ 5499/-
Package Includes
  • ✓ Documentation for dormancy documents
  • ✓ Auditor certificate
  • ✓ Submission of dormant form
  • ✓ Dormant status on MCA
  • ✓ Delegated Professional to coordinate exclusively to your case at a time.
Click here to Start  
Platinum Plan
Platinum Plan
₹ 11999/-   ₹ 7999/-
Package Includes
  • ✓ Documentation for dormancy documents
  • ✓ Auditor certificate
  • ✓ Submission of dormant form
  • ✓ Dormant status on MCA
  • ✓ Delegated Professional to coordinate exclusively to your case at a time.
  • ✓ ROC Filing for Dormant company for 1 year
  • ✓ GST return filing assistance
  • ✓ 4 TDS filings
  • ✓ Preparation of Financial Statement
  • ✓ Filing of company ITR for a year
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  • Dormant companies are temporarily kept inactive for some specified period but remain in the books of Registrar of Companies.
  • Thers is no requirement to hold Annual General meeting (AGM) every year
  • Company can retain its dormant status for as long as 5 years.
  • Such companies can retain their active status by following the specified procedure.
  • Dormancy saves the company from the hassle of maintaing books and following regular compliances
  • At all times, there must be minimum 2 directors in case of Private Limited, 3 directors in case of Public Limited and 1 Director in case of One Person company (OPC).
Plan Offer

FAQ
frequently asked questions

frequently asked questions
What is the procedure for registering a dormant company?
A Limited Company, a Private Limited Company, or a One-Person Company may register as a dormant company by maintaining board resolution and filling Form MSC-1.

"Where an entity is shaped and registered under this Act for a future venture or to possess an asset or intellectual property and has no large accounting exchange, such an organization or an inactive organization may make an application to the Registrar in such a way as might be endorsed for getting the status of a dormant corporation," according to the Companies Act of 2013, "such an organization or an inactive organization may make an application to the Registrar in such a way as may be endorsed for getting the status of a Dormant Company.
The following documents are required: If the business is controlled by a regulatory authority, a copy of their approval or no objection certificate (NOC) is required. In the event that the company's financial statement and annual return are submitted with the Registrar,they must be attached. If there is an unpaid loan, the lender's permission is needed.
To begin, a board meeting to set the date and location for a remarkable general meeting of the people to pass a special resolution (with at least 3/4 of the total). During this meeting, the Board of Directors may submit an overall application to ROC for dormant status. 
Next, an extraordinary general meeting is convened to pass a special resolution. This gives consent to the decision taken at boeard meeting with explanatory statement. This is followed by various filings with ROC.

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