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A company acquires the Dormant Company status when the Registrar approves an application in Form MSC-1 of Companies. There are several reasons why a company seeks dormant status. Please refer to our detailed discussion on the procedure to convert an active company as a dormant company; click here. A company can remain dormant only for up to five years, and if a company remains in dormant status beyond the five years, then the ROC shall strike off the company itself.
Hence the company should apply to the ROC for obtaining the Active Company Status within five years from the date the company was declared to be a Dormant Company. In case of any event in breach of conditions for a dormant company, the company’s directors must apply for the restoration of the company as an active company within seven days of such event.
If an inactive company having acquired Dormant Company Status can quickly restore itself as an active company. On this page, we have explained the stepwise process of restoring a company as an Active Company by filing. MSC-3 Application to the Registrar of Companies.
Step Wise Process in Chronological Order
The Board of Directors shall pass a resolution to make an application with ROC for obtaining the status of a dormant company as an active company and authorise a director to make an application, sign documents or forms, or complete all the formalities.
Before the application for change in status is filed, prepare a dormant company return in form MSC-3 in respect of the financial year in which the application for obtaining the status of an active company is being filed.
The application for changing the company's status from a Dormant to an Active Company is filed in form MSC-4 after the Board of directors approve such changes in step number one above.
Upon satisfaction of the ROC on the application for changing the company's status, the ROC issues a Certificate in form MSC-5 after it accords its approval to the application.
To acquire status as a Dormant Company following three applications shall be filed to the Registrar of Companies with Prescribed Filing Fee
S.No | Form Name | Name Explanation | ROC Fee |
---|---|---|---|
1. | e-Form - MSC-4 | The application is filed to change the Status of the Company from the Dormant to an Active along with the financial statements and board resolution. | Depends on the Capital of the Company as per the below table. |
No. | Authorised Capital | Other than OPC or Small Company | OPC or Small Company |
---|---|---|---|
1. | Up to Rs. 25,00,000/- | Rs. 2,000/- | Rs. 1,000/- |
3. | Rs. 25,00,001 To 50,00,000/- | Rs. 5000/- | Rs. 2,500/- |
3. | Rs. 50,00,001 To Rs 5 Crores | Rs. 10,000/- | N/A |
4. | Rs 5 Crores to Rs 10 Crores | Rs. 15,000/- | N/A |
5. | Above Rs. 10 Crores | Rs. 20,000/- | N/A |