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.
