Dormant Company
25
Presented By Team AGBians
description
Under Indian Companies Act, 2013 - the concept of Dormant Company has been introduced. If your Group have some inactive companies then by using this Section - you can skip expense on accounts preparation, audit, and routine filing. The Corporate Hibernation can continue for five years at a time. Good for Auditors too - as such companies will not be counted under the limits of 20.
Transcript of Dormant Company
Presented By Team AGBians
SECTION 455 OF CHAPTER XXVIII OF COMPANIES ACT, 2013
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Do you Know??? Companies Eligible for being a Dormant Company Companies Incorporated for
Future Projects or To hold only assets or To hold Intellectual Property or Inactive Company
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Do you Know??? Companies Eligible for being a Dormant Company And Has no significant
accounting transaction
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Inactive Company Not carrying any business or
operation or No significant accounting
transaction during last two financial years, or
Has not filed financial statements and annual returns during last two financial years
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• No Accounts, • No Audit, • 1 form per year • Minimal Expenditure
PROMOTERS
• No Disclosure • No Default • No Tension
DIRECTORS
• Not to be counted in audits Auditor
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NO inspection, Enquiry or
investigation ordered or taken
Against company.
No prosecution initiated &
pending against the company
Company not having any outstanding public
deposits & also company has not made
any default in payment or interest
thereof
No dispute in the
management or ownership of the company
Company shall not have any outstanding statutory taxes, dues,
duties etc.
No default in payment of
workmen’s dues
Securities of company are not
listed on any stock exchange
Eligibility of Company for Status of Dormant Company [R-3]
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Requirements Related to Active Status of a Dormant Company [S-455(5)] Minimum NO. Of Directors; Annual Fees as may be prescribed; Filing of Necessary Documents Along with Necessary Fees.
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Cont…
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Cont……
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Following shall be deemed to be the Register of Dormant Companies • Register maintained on the
website of MCA i.e. on www.mca.gov.in ;
• Any other website report by the
Central government in their notifications.
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What can happen after 5
years? Don’t forget to re-activate – before 5 years period Because Registrar is empowered to initiate the process of striking off the company if the company remains as a dormant company for a period of consecutive 5 years [ R-8].
That means if a Dormant company wants to be an active Company then it can do so but before the expiry of 5 Consecutive years.
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Application For Seeking Status Of
An Active Company [R-8(1)]
Application in Form MSC-4 along with the fees provided in Companies( Registration offices & Fees) Rules, 2014 & attachment of Return filed in Form MSC-3 to the Registrar In respect of f.y. in which the application for obtaining the status of an active company is being filed.
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How and When – DC will become AC ? Registrar shall give his consent by issuing Form MSC-5 as a certificate of status of an Active Company.
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Consequences of Failure To Act As Dormant Company Failure to act as dormant Company may result into strike off the name of company from register of dormant by registrar.
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