Dormat Status filing
Dormant Status Filing is the procedure by which a business that is registered under the Companies Act of 2013 can submit an application to the Registrar of Companies (ROC) in order to be classed as a "Dormant Company."
When a company is dormant, it means that:
Was established for the purpose of a future project, or
Has a piece of property or intellectual property, or
Does not have any important transactions in accounting, or
Has a momentary pause in activity
To put it another way, dormant status indicates that a firm is able to legally continue to be registered even when it is not actively doing business activities.
Not only does it assist decrease the stress of compliance, but it also helps the organization remain legally viable.
Qualifications Required to Be Considered for Dormant Status
Applying for:
✅ There are no ROC filings that are pending
✅ There are no loans or deposits that are still due
✅ There are no outstanding legal challenges
✅ Required permission from the board
✅ The permission of shareholders is necessary
Before applying, the company first has to be compliant.
Steps to Take in Order to Apply for Dormant Status
Hold a Meeting of the Board
To apply for dormant status, the resolution must be passed.
Obtain Acknowledgement from the Shareholders
Get the Special Resolution passed.
Eliminate Any Outstanding Filings
Make certain that all ROC compliances have been finished.
Submit the MSC-1 Form
Send in your application along with any necessary materials.
Review of the ROC
This application is reviewed by the Registrar.
Approval and Certificate
If authorised, the firm will be placed in the dormant category.
The name of the company is still there in the records, but it is listed as "Dormant."
Annual Compliance for Companies That Have Gone Dormant
Even defunct businesses are required to:
✔️ A minimum number of directors should be maintained
✔️ Form MSC-3, "Return of Dormant Company," must be submitted on an annual basis
✔️ Observe the authorised yearly charge
✔️ Keep the statutory registries up to date
In the event that compliance is not met, the inactive status may be removed.
Potential Dangers of Ignoring Dormant Filing
Heavy fines for filing documents late
Constant strain of mandatory compliance
Potential for a strike-off
The disqualification of the director
Why Being Dormant Is Really Important
Changes occur in business cycles.
When it comes to failure, delay may sometimes be strategic.
Position of dormancy:
The safeguarding of your legal identity
Lessens the need for needless compliance
Preserves the possibility of resurrection
Defends against sanctions
It is not abandonment but rather preservation that is organised.
The Ways in Which We Can Assist
