Defination of Dormant Company

DORMANT COMPANY

Lets emphasis on Definition of Dormant Company:

Dormant Company means a company

1.      If a company is formed and registered under the Act for a future project and

has no significant accounting transaction or

2.      If a company is formed and registered under the Act to hold assets and has no significant accounting transaction or

3.      If a company is formed and registered under the Act for Intellectual property and has no significant accounting transaction such a company OR

4.      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:

Ø  has not been Carrying on Any Business, or

Ø  has not been Carrying on operation or

Ø  has not made any Significant Accounting Transaction During The Last Two Financial Years, or

Ø  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-

Ø  Payment of Fees by a company to the Registrar;

Ø  Payments made by it to fulfill the requirements of this Act or any other law;

Ø  Allotment of shares to fulfill the requirements of this Act; and

Ø  Payments for maintenance of its office and records.