Active Company or Dormant, India

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Active Company in India

The dormant company status can be applied for by a company that is inactive or whose operations are being held for a future try or created to have but with no significant accounting transaction. Dormant companies may be exempted from specific provisions of the Companies Act.

Overview of Dormant Company Status

A company The Registrar will approve a Form MSC-1 of companies to grant the Dormant Company designation. There are many reasons why a company would like to be dormant. We have a detailed discussion here on how to make an active company a dormant entity. Click here. A company can be dormant for up to five years. If a company is inactive for longer, it will be penalized. ROC will strike off and the company itself.

The company must submit a request to the ROC to meet the Active Company status within five years after the date the company was designated as a Dormant Company. The company's directors should apply within seven days for the restoration or activation of the company if there is any breach of conditions that a dormant entity.

Step-by-step process to convert a dormant company into an active one.

The Board of Directors may adopt a resolution authorizing a director or other representative to apply with ROC to gain the status of a deceased company as an active entity.

Prepare an MSC-3 Dormant Company Return for the financial year that the application to change the company's status is being filed.

After approval of such changes by the Board of Directors, MSC-4 is used to apply to make the company Active.

After approving the application, the ROC will issue a Certificate MSC-5 if they have accepted the company's request.

  • Copy of the board decision authorizing the filing of this declaration
  • The duly audited Statement of Financial Position.
  • Copy of the Memorandum of Association/Articles of Association

To be considered for the status of a Dormant Company, you must file three applications to the Registrar of Companies.
S.No Formulation Name Explanation ROC Fee
1. e-Form - MSC-4 With the financial statements, board resolution and financial statements, the application to change the Company's Status from Dormant is filed. According to the below table, the Capital of the Company will be a determinant.

S.No Authorized Capital Other than OPC/Small Company OPC and Small Company
1. Up to Rs. 25,00,000/- Rs. 2,000/- Rs. 1,000/-
2. Rs. Rs. Rs. 5000/- Rs. 2,500/-
3. Rs. 50,00,001 To Rs 5 Crores Rs. 10,000/- N/A
4. Rs 5 Crores to RS 10 Crores Rs. 15,000/- N/A
5. Above Rs. 10 Crores Rs. 20,000/- N/A
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