Dormant Company To Account Status

Overview of Dormant Company Status

The Registrar will approve a Form MSC-1 Company Application. This is when a company attains the Dormant Company statute. There are many reasons why a company would like to be dormant. We have a detailed discussion on converting an existing company to inactive status here. A company can be dormant for up to 5 years. If a company is still active after that time, then the ROC will extinguish the company.

The company should thus apply to ROC for Active Company Status within 5 years from the date it was declared 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.

Section 248(2) of the Companies Act, 2013 and Companies (Removal of Names of Companies Register of Companies), Rules prescribes a detailed procedure to close an inactive or dead company. These are the steps that will lead to company closure.

The Board of Directors may adopt a resolution authorizing ROC to make an Application with ROC to become an Active Company from a Dormant Company.
Prepare & File a Return in MSC-3
Prepare a MSC-3 Dormant Company Return for the financial year that the application to change the company's status is being filed.

After the Board of director approves the changes, MSC-4 is used to file the application to make the company Active.

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 this declaration.
The duly audited Statement of Financial Position.
Copy of memorandum/articles de association.

Three applications will be required to obtain the status of a Dormant Company.

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 Status is filed.	The Capital of the Company will be determined according to the following table.

S.No	Authorized Capital	Other than OPC/Small Company	OPC or Small Company
1.	As High as 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.	From Rs 5 crores to Rs10 crores	Rs. 15,000/-	N/A
5.	Above Rs. 10 Crores	Rs. 20,000/-	N/A

Quantity	: 1 Year
Market Price	: ₹11899
DobizndiaFilings	: ₹8389 excl. GST
	₹9899 incl. GST
GST Credit	: ₹1510
You Save	: ₹3510 (29%)

Quantity

: 1 Year

Market Price

: ₹11899

DobizndiaFilings

: ₹8389 excl. GST

₹9899 incl. GST

GST Credit

: ₹1510

You Save

: ₹3510 (29%)

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