Dormant Company Status
Quick Answer
Dormant Company Status Registration India allows a company incorporated under the Companies Act, 2013 to obtain status as a dormant company if it has no significant accounting transactions or is an inactive company. This status helps businesses avoid the burden of regular compliance while keeping the company registered.
Dormant Company Status — detailed explanation below
Governing Act — Dormant Company Status Registration India
The concept of a dormant company is governed by Section 455 of the Companies Act, 2013. This section defines a dormant company as one that has not been carrying on any business or has no significant accounting transactions during the last two financial years. The Ministry of Corporate Affairs (MCA) has also issued the Companies (Miscellaneous) Rules, 2014, which prescribe the procedure for applying for dormant status.
Government Department & Website for Dormant Company Status Registration India
The application for Dormant Company Status Registration India is filed with the Ministry of Corporate Affairs (MCA) through its online portal. The official website is www.mca.gov.in. All forms and filings are done electronically using the MCA21 system.
Dormant Company Status Registration India Application Process
The process for obtaining dormant status involves the following steps:
- Board Resolution: The company's board of directors must pass a resolution approving the application for dormant status.
- Special Resolution: A special resolution must be passed by the members of the company.
- Filing Form MSC-1: The company must file Form MSC-1 with the Registrar of Companies (ROC) along with the required documents.
- Verification by ROC: The ROC reviews the application and, if satisfied, issues a certificate of dormant status.
- Annual Compliance: While dormant, the company must file Form MSC-3 (annual return) and Form MSC-4 (certificate of compliance) each year.
Key Forms Required for Dormant Company Status Registration India
The following forms are essential for Dormant Company Status Registration India:
- Form MSC-1: Application for obtaining status of dormant company.
- Form MSC-3: Annual return of dormant company.
- Form MSC-4: Certificate of compliance from the company's auditor.
- Form MSC-5: Application for seeking status of active company (if the company wishes to become active again).
Eligibility Criteria for Dormant Company Status Registration India
A company is eligible to apply for dormant status if:
- It has not been carrying on any business or has no significant accounting transactions during the last two financial years.
- It has not made any application for winding up.
- It has not been struck off by the ROC.
- It has filed all due financial statements and annual returns.
Additionally, a company incorporated for a future project or to hold an asset may also apply for dormant status.
Timeline for Dormant Company Status Registration India
The timeline for processing an application for dormant status depends on the ROC's workload. The company must file Form MSC-1 and the ROC will review and issue the certificate if all documents are in order. No specific timeline is prescribed by law.
Fees for Dormant Company Status Registration India
The government fees for filing Form MSC-1 are as prescribed by the Companies (Registration Offices and Fees) Rules, 2014. The fee depends on the authorized share capital of the company. Below is the fee structure:
| Authorized Share Capital | Fee (INR) |
|---|---|
| Up to ₹1,00,000 | ₹200 |
| ₹1,00,001 to ₹5,00,000 | ₹300 |
| ₹5,00,001 to ₹10,00,000 | ₹400 |
| Above ₹10,00,000 | ₹500 |
Note: Additional fees may apply for late filing or other services.
Frequently Asked Questions
What is Dormant Company Status Registration India?
Dormant Company Status Registration India is a process under Section 455 of the Companies Act, 2013 that allows a company with no significant accounting transactions to obtain dormant status, reducing compliance requirements.
Who can apply for Dormant Company Status Registration India?
Any company incorporated under the Companies Act that has not carried on business or had significant transactions for the last two financial years can apply. Also, companies formed for a future project or to hold an asset are eligible.
What forms are needed for Dormant Company Status Registration India?
The key forms are Form MSC-1 (application), Form MSC-3 (annual return), and Form MSC-4 (compliance certificate). These are filed with the ROC through the MCA portal.
Can a dormant company become active again after Dormant Company Status Registration India?
Yes, a dormant company can apply to become active by filing Form MSC-5 with the ROC, along with a board resolution and a declaration that it will carry on business.
What are the annual compliance requirements for Dormant Company Status Registration India?
A dormant company must file Form MSC-3 (annual return) and Form MSC-4 (certificate of compliance) each year. It is exempt from other compliances like holding annual general meetings.
Is Dormant Company Status Registration India beneficial for startups?
Yes, startups that have incorporated but not yet commenced operations can use dormant status to avoid regular compliance costs while keeping the company registered for future business.
Share this page