DORMANT COMPANY UNDER SECTION 455 OF COMPANIES ACT

The term Dormant itself defines an inactive, non-functional or suspended state. Keeping in line, the Section 455 of The Companies Act, 2013 also describes a Dormant Company as a company which has no significant accounting transaction. The term Significant Accounting Transaction indicates transaction other than:- 

• The payment of fees to Registrar,
• The payment made to fulfill requirements of the Act,
• The payment made in order to maintain office or record, and
•  Allotment of shares.

Moreover, a Dormant Company must have:-

• 3 Directors in case of Public Company,
• 2 Director in case Private Company, and
• 1 Director in case of One Person Company

What are the documents required to be attached while filing form?

The following are documents are required to be attached:-

1. Latest Financial Statement
2. Statement of Accounts
3. List of Shareholders
4. List of Directors
5. Notice of EGM
6. Special Resolution
7. Auditor’s Certificate

How to revitalize a Dormant company?

• For obtaining the status of an Active company an application shall be made in Form MSC-4 and shall also file return in Form MSC-3of financial year in which application for obtaining the status of Active Company is being filed.

• The Registrar shall, after considering the application in Form MSC-4, issue a certificate in Form MSC-5 allowing the status of an Active company to the applicant.