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A Limited Company or Private Limited Company or One Person Company can enlist itself as a dormant organization and benefit certain exceptions from compulsory compliances. Lethargic company status is for the most part gotten for companies enlisted to hold a benefit or protected innovation and have no signiﬁcant bookkeeping exchanges. In this article, we take a gander at the technique for enrolling as a lethargic company in India and its points of interest.
As per the Companies Act, 2013, the deﬁnition for a dormant company is:
“Where acompany is framed and enlisted under this Act for a future venture or to hold an advantage or protected innovation and has no signiﬁcant bookkeeping exchange, such acompany or an inert company may make an application to the Registrar in such way as might be recommended for getting the status of a dormantcompany. Clarification. — For the motivations behind this segment,
Eligibility for registering as dormant company
A company can apply for and become a dormant company, only if the following criteria are satisﬁed:
Procedure for registering as a dormant company
To acquire the status of lethargic company, the accompanying strides must be trailed by the company:
The company must ﬁrst lead a General Meeting of the Board and pass an extraordinary resolution for applying to wind up distinctly as a lethargic company or send notice of the same to all shareholders and acquire assent of atleast 3/4 of the shareholders in esteem. Once, the Board Resolution or shareholder’s endorsement is acquired, the same can be ﬁled with MSC-1 (Application for status of dormantcompany) with the imperative expenses. In the event that the Registrar is satisﬁed with the application, then a Certiﬁcate will be issued by the Registrar in MSC-2 permitting the status of dormantcompany. Subtle elements of all dormantcompanies are kept up by the Registrar furthermore distributed on the MCA site Dormantcompanies are required to ﬁle an “Arrival of Dormant Company” every year before April 30th with the Ministry of Corporate Aﬀairs. The arrival of lethargic company must incorporate detail of ﬁnancial position of the company appropriately examined by a Chartered Accountant by and by. The arrival of dormantcompany is ﬁled usingForm MSC-3. To re-establish the dynamic company status, an application can be made to the Registrar in shape MSC.
On the off chance that the Registrar is satisﬁed with the application, the company will be re-established to dynamic status by issuance of MSC-5. Once acompany is enrolled as a lethargic company, the yearly return for the company can be ﬁled utilizing a simpliﬁed frame MSC-3. Additionally, the quantity of Board Meetings to be led by the Company is decreased and the consistence weight is lessened.