What is the procedure to be followed by a Dormant Company for obtaining the status of an Active Company?
CS Executive · Setting up of Business Entities and Closure · PYQS · June 2023
What is the procedure to be followed by a Dormant Company for obtaining the status of an Active Company?
Answer & Explanation:
In accordance with the provisions of Section 455 read with Rule 8 of the Companies (Miscellaneous) Rules, 2014, the dormant company shall follow the below procedure for obtaining status of an active company on its own: An application for obtaining the status of an active company is required to be made in Form MSC-4 along with fees as provided in the Companies (Registration Offices and Fees) Rules, 2014 which should be accompanied by a 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 ROC after considering the application filed for obtaining the status of the active company from dormant company shall issue a certificate in Form MSC-5 allowing the status of an active company to the applicant. The ROC shall in the following cases change the status of the dormant company to active company: Where a dormant company does or omits to do any act mentioned in the grounds in the application made for obtaining status of a dormant company and such act or omission affects its status of dormant company, the directors of such a company are required to file an application within seven days from such event for obtaining the status of an active company. Where the ROC has reasonable cause to believe that any company registered as 'dormant company' under his jurisdiction has been functioning in any manner, directly or indirectly affecting the status of dormant company, the ROC can initiate the proceedings for enquiry under section 206 of the Companies Act, 2013 and if, after giving a reasonable opportunity of being heard to the company in this regard, it is found that the company has actually been active, the ROC may remove the name of such company from Register of dormant companies and treat it as an active company.
Topics: Company Law
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