Under Indian Companies Act, 2013 - the concept of Dormant Company has been introduced. If your Group have some inactive companies then by using this Section - you can skip expense on accounts preparation, audit, and routine filing. The Corporate Hibernation can continue for five years at a time. Good for Auditors too - as such companies will not be counted under the limits of 20.

1. Presented By
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2. SECTION 455 OF CHAPTER
XXVIII OF COMPANIES ACT, 2013
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3. Team AGBians

4. Do you Know???
Companies Eligible for
being a Dormant Company
 Companies Incorporated for
Future Projects or
 To hold only assets or
 To hold Intellectual Property or
 Inactive Company
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5. Do you Know???
Companies Eligible for
being a Dormant Company
And
Has no significant
accounting transaction
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6. Inactive Company
 Not carrying any business or
operation or
 No significant accounting
transaction during last two
financial years, or
 Has not filed financial statements
and annual returns during last two
financial years
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10. • No Accounts,
• No Audit,
• 1 form per year
• Minimal Expenditure
PROMOTERS
• No Disclosure
• No Default
• No Tension
DIRECTORS
• Not to be counted
in auditsAuditor
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11. NO inspection,
Enquiry or
investigation
ordered or taken
Against company.
No prosecution
initiated &
pending
against the
company
Company not having
any outstanding public
deposits & also
company has not made
any default in
payment or interest
thereof
No dispute in
the
management or
ownership of
the company
Company shall not
have any outstanding
statutory taxes, dues,
duties etc.
No default in
payment of
workmen’s dues
Securities of
company are not
listed on any stock
exchange
Eligibility of Company for Status of Dormant
Company [R-3]
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12. Requirements Related to
Active Status of a Dormant
Company [S-455(5)]
 Minimum NO. Of Directors;
 Annual Fees as may be
prescribed;
 Filing of Necessary
Documents Along with
Necessary Fees.
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14. Cont…
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16. Cont……
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20. Following shall be deemed to be the
Register of Dormant Companies
• Register maintained on the
website of MCA i.e. on
www.mca.gov.in ;
• Any other website report by the
Central government in their
notifications.
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21. What can happen after 5
years?
Don’t forget to re-activate – before 5 years
period
Because Registrar is empowered to
initiate the process of striking off the
company if the company remains as a
dormant company for a period of
consecutive 5 years [ R-8].
That means if a Dormant company
wants to be an active Company then it
can do so but before the expiry of 5
Consecutive years. Team AGBians

22. Application For Seeking Status Of
An Active Company [R-8(1)]
Application in Form MSC-4 along with the
fees provided in Companies( Registration
offices & Fees) Rules, 2014 & attachment of
Return filed in Form MSC-3 to the Registrar
In respect of f.y. in which the application for
obtaining the status of an active company is
being filed.
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23. How and When – DC
will become AC ?
Registrar shall give his
consent by issuing Form
MSC-5 as a certificate of
status of an Active
Company.
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24. Consequences of Failure To
Act As Dormant Company
Failure to act as dormant
Company may result into
strike off the name of
company from register of
dormant by registrar.
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