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Overview Of Dormant Company Status

A company acquires the Dormant Company status when the Registrar approves an application in Form MSC-1 of Companies. There are several reasons why a company seeks dormant status. Please refer to our detailed discussion on the procedure to convert an active company as a dormant company; click here. A company can remain dormant only for up to five years, and if a company remain in dormant status beyond the five years, then the ROC shall strike off the company itself.

Hence the company should apply to the ROC for obtaining the Active Company Status within five years from the date the company was declared to be a Dormant Company. In case of any event in breach of conditions for a dormant company, the company’s directors must apply for the restoration of the company as an active company within seven days of such event.

Change in Partners of LLP

Stepwise Process To Convert a Dormant Company to Active Company

 

Step Step Wise Process in Chronological Order
1 Convene Board Meeting
The Board of Directors shall pass a resolution to make an application with ROC for obtaining the status of a dormant company as an active company and authorise a director to make an application, sign documents or forms, or complete all the formalities.
2 Prepare & File Return in MSC-3
Before the application for change in status is filed, prepare a dormant company 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.
3 File Application in MSC-4
The application for changing the company’s status from a Dormant to an Active Company is filed in form MSC-4 after the Board of directors approve such changes in step number one above.
4 Approval as Active Company
Upon satisfaction of the ROC on the application for changing the company’s status, the ROC issues a Certificate in form MSC-5 after it accords its approval to the application.

List of Documents Required for Dormant to Active Company

 

  • Copy of board resolution authorising for filing this declaration.
  • The duly audited statement of financial position.
  • Copy of memorandum of association/articles of association.

Applicable ROC Forms & ROC Feee

To acquire status as a Dormant Company following three applications shall be filed to the Registrar of Companies with Prescribed Filing Fee

No Form Name Explanation ROC Fee
1 e-Form – MSC-4 The application is filed to change the Status of the Company from the Dormant to an Active along with the financial statements and board resolution. Depends on the Capital of the Company as per the below table.

 

Filing Fee for MSC-4 (Application to make a company as Dormant Company

 

No Authorised Capital Other than OPC or Small Company OPC or Small Company
1 Up to Rs. 25,00,000/- Rs. 2,000/- Rs. 1,000/-
2 Rs. 25,00,001 To 50,00,000/- 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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