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We are a professional consulting firm specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, explaining the eligibility, process, and documents required for setting up and maintaining a business. We also prepare and file necessary applications with relevant government agencies such as the Registrar of Companies (ROC) and the Income Tax Department. We do not directly provide government documents or represent ourselves as a government agency.

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  • Basic Overview arrow
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HomearrowCompliancearrowLLP Name Change

Overview Of Dormant Company Status

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.

Dormant to Active Company in India

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.

Stepwise Process To Convert a Dormant Company to Active Company

Step Wise Process in Chronological Order

step1

Convene Board Meeting

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.

step2

Prepare & File Return in MSC-3

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.

step3

File Application in MSC-4

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.

step4

Approval as Active Company

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.

List of Documents Required for Dormant to Active Company
  • 1. Copy of board resolution authorising for filing this declaration.
  • 2. The duly audited statement of financial position.
  • 3. Copy of memorandum of association/articles of association.

Applicable ROC Forms & ROC Fee

To acquire status as a Dormant Company following three applications shall be filed to the Registrar of Companies with Prescribed Filing Fee

S.NoForm Name Name ExplanationROC Fee
1.e-Form - MSC-4The 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.

Filing Fee for MSC-4 (Application to make a company as Dormant Company)

No.Authorised CapitalOther than OPC or Small CompanyOPC 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 CroresRs. 10,000/-N/A
4.Rs 5 Crores to Rs 10 CroresRs. 15,000/-N/A
5.Above Rs. 10 CroresRs. 20,000/-N/A