DORMANT COMPANY
Sec 455 Of Companies Act 2013 With (miscellaneous)Rules 2014 Stipulate The Provision Pertaining To “DORMANT COMPANY".
A Company Is Formed And Register Under This Act To Hold An Assets Or Intellectual Property For Future Project.
This Company Has No Significant Accounting Transaction And Has To Apply The Registrar For Obtaining The Status Of Dormant Company.
1)It Does Not Carry Any Business or Operation.
2)It Should Not Have Any Financial Transaction During Last Two Financial Years.
3)It Should Not Have Been Filling Any Financial Statement Or Annual Returns During Last Two Financial Years.
ONLY THIS TRANSACTION ARE VALID
1)If company pays fees to registrar.
2) payment made by company to fulfill any requirement of companies act or any other law.
3)alloting shares to fulfil the requirements of companies act or any other law.
4) payment made for maintenance of office and records.
If Company has made any of the above transaction in last two years then also that Company will fall under definition of dormant company.
OBTAINING DORMANT STATUS
We can obtain dormant status (inactive) in Two ways
1)SUO MOTO:- a company which meets a above criteria can apply for Registration as suo moto(On its own).
For the status of dormant company in form MSC-1 along with the fee provided in the companies .
2) REGISTRAR OF COMPANY (ROC):- if a company has not filed an annual return or an financial statements in two financial year consecutively.the registrar will issue a notice to such company and enter the name of such company in the companies registrar maintained for dormant company.
REGISTRAR WILL STRIKE OFF (CANCEL)THE NAME OF THE COMPANY IF IT REMAINS IN DORMANT STATUS FOR A PERIOD OF CONSECUTIVE 5 YEARS. BEFORE THE END OF 5 YEARS YOU HAVE TO CHANGE THE COMPANY STATUS FROM DORMANT TO ACTIVE.
PROCEDURE TO OBTAIN THE STATUS OF DORMANT COMPNAY:-
1)company shall call a board meeting in which they will fix a date ,day ,time,venue for calling a general meeting of Members of the company in which they will pass resolution for making application to ROC to obtain the status of dormant company.
2)the company shall obtain the statement affairs which will give the companies financial position at the time of passing resolution in shareholder meeting from the auditor of the company
3)the company shall hold the general meeting at the appointed time,place and date as per the notice calling the said meeting.the notice shall propose the resolution as a special resolution.
4)the company shall pass special resolution in which there should be 3/4th consent of the shareholders and then Authorize an director to make an application to ROC for Obtaining the status of dormant company.
5)after passing special resolution the company shall e-file form MGT-14 with ROC for filing special resolution.
6)After filing of form MGT-14 the company shall file form MSC-1 with ROC along with the copy of special resolution, statement of affairs, declaration of directors and other necessary documents.
7)on being satisfied with the merit of the application the ROC Will issue certificate in form MSC-2(confirming reply from ROC that you are now registered as dormant company) on confirming the application.
BENEFITS PROVIDED TO DORMANT COMPANY:-
1) This Company shall hold only two board meetings in a years with the gap of 90days.
2)This company is not required to include the statement of cashflows in its financial statement.
3)The provision of rotation of auditor's is not applicable to Dormant Company.
4)This Company enjoy the advantage of lower statutory compliance cost as there are few statutory compliance applicable to Dormant Company as compared to active company.
5)Dormant company is an advantage to promote who wants to hold an intellectual property or assets under the Corporate sheild for its usage at the later stages.
6) Companies can enjoy the status of Dormant Company for the period of 5 consecutive years.
HOPE THIS WAS HELPFULL TO YOU 😁❤️🙏FOR MORE DETAILS READ MY OTHER BLOGS.
No comments:
Post a Comment