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2014

About Dormant Company

Analysis of Definition of Dormant Company:

Dormant Company means a company –
  • If a company is formed and registered under the Act for a future project and has no significant accounting transaction, or
  • If a company is formed and registered under the Act to hold assets and has no significant accounting transaction, or
  • If a company is formed and registered under the Act for Intellectual property and has no significant accounting transaction such a company, or
  • An Inactive company may make an application in such manner as may be prescribed for obtaining the status of dormant company.

Not Lets Discuss Inactive Company:

Inactive company means a company which –
  • has not been Carrying on Any Business, or
  • has not been Carrying on operation, or
  • has not made any Significant Accounting Transaction During The Last Two Financial Years, or
  • has not filed Financial Statements and Annual Returns during the LAST TWO FINANCIAL YEARS.

Not Lets Discuss Significant Accounting Transaction

Significant Accounting Transaction means any transaction other than –
  • Payment of Fees by a company to the Registrar;
  • Payments made by it to fulfill the requirements of this Act or any other law;
  • Allotment of shares to fulfill the requirements of this Act; and
  • Payments for maintenance of its office and records.
Financial Management