Dormant Status Filing

Obtaining dormant status for a company allows it to remain registered without conducting any significant business activity. This status is beneficial for companies that plan to pause operations while retaining their legal existence. At Global Taxman, we ensure a hassle-free process to file for dormant status, complying with the Companies Act provisions.

What is Dormant Status?

Dormant status is granted to companies that have no significant transactions but wish to retain their registration for future operations. The status allows them to avoid penalties for non-compliance while staying active on the Registrar of Companies (RoC) records.

Eligibility for Dormant Status

• The company has no significant financial transactions in the previous two years.
• Not declared as a defunct company by RoC.
• Has no outstanding dues, such as taxes or compliance fees.
• Board resolution and approval from shareholders are obtained.

Key Benefits of Dormant Status

• Avoid penalties for non-filing of compliance forms.
• Preserve the company's name and registration for future use.
• Minimal compliance requirements compared to an active company.
• Cost-effective solution for temporarily inactive businesses.

Step-by-Step Process

1. Board Meeting: Pass a resolution to apply for dormant status.
2. Shareholder Approval: Obtain consent through a special resolution in the general meeting.
3. Clearance of Dues: Ensure all statutory and tax dues are cleared.
4. Filing with RoC: Submit Form MSC-1 along with necessary documents to the RoC.
5. Approval of Status: Upon verification, the RoC grants the dormant status.

Documents Required

• Board resolution and shareholders’ approval.
• Statement of assets and liabilities certified by a Chartered Accountant.
• Certificate of no dues from tax authorities.
• Declaration of intent to remain dormant.
• Consent from creditors, if applicable.

Why Choose Global Taxman?

• Expert Guidance: Our team ensures a smooth and legally compliant filing process.
• Cost-Effective Services: Affordable pricing with no hidden charges.
• End-to-End Support: Assistance from documentation to approval.
• Compliance Assurance: Ensure all regulatory requirements are fulfilled seamlessly.

Frequently Asked Questions (FAQs)

• How long can a company remain dormant? A company can remain dormant for up to 5 years, after which it must become active or face deregistration.
• Can a dormant company conduct any transactions? No significant transactions are allowed; only maintenance-related transactions like payment of fees are permitted.
• Is annual compliance required for dormant companies? Yes, dormant companies must file annual returns and financial statements.
• Can a dormant company resume active status? Yes, by filing Form MSC-4 with the RoC, a dormant company can regain active status.