HOW TO NORMALISE
DORMANT COMPANY
When a company is formed and
registered under Companies Act 2013 for some future project and has no
significant accounting transaction, such inactive company can make application
to registrar for dormant Status.
Now, when that future project has
come up or very near, and you are willing to again make it active, then, you
need to follow some key steps as below;
Application for seeking
status of an active company:
·
An application under sub-section (5) of
section 455, for obtaining the status of an active company shall be made in
Form MSC-4 along with the fees as
prescribed and shall be accompanied by a
return in form MSC-3 in respect of
the financial year in which the application for obtaining the status of an active company is being filed.
It is to be
noted that the registrar shall initiate the process of
striking off the name of the company if the company remains as a dormant
company for the period of consecutive 5 years.
·
The Registrar shall, after considering
the application filed under rule as discussed above , issue a certificate in Form
MSC-5 allowing the status of an
active company to the applicant.
·
Where a dormant company does or omits to
do any act mentioned in the grounds of application in form MSC-1 submitted to
Registrar for obtaining the status of dormant company, affecting its status of
dormant company, the directors shall within 7 days from such event, file an
application, for obtaining the status of an active company.
·
Where the Registrar has reasonable cause
to believe that any company registered as ‘dormant company’ under his
jurisdiction has been functioning in any manner, directly or indirectly, he may
initiate the proceedings for enquiry and if, after giving a reasonable
opportunity of being heard to the company in this regard, it is found that the
company has actually been functioning, the Registrar may remove the name of
such company from register of dormant company and treat it as an active
company.
It
is important to note that a dormant company is required to file Annual Return
indicating financial position duly audited by a Chartered Accountant in
Practice in eForm MSC 3 every year within 30 days from the end of each
Financial Year.
Further
to this, otherwise, the dormant company shall continue to file other event
based compliances in the same manner as if it is an active company.
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