CD Ltd. has not filed financial statements and annual returns during the last two financial years. The Company wants to get the status of a Dormant Company. The Company has approached you seeking your advice on the benef

Benefits/Exemptions provided to a Dormant Company are as follows: Dormant Company may hold only two board meetings in a year with a gap of 90 days in between the two meetings. Dormant Company is not required to include the statement of cash flow in its financial statement. The provision of rotation of auditors is not applicable in case of the dormant company. Dormant companies enjoy the advantages of lower statutory compliance cost as there are few statutory compliances applicable to dormant company as compared to active company. Dormant status is an advantage to promoters who want to hold an intellectual property or an asset under the corporate shield for its usage at a later stage. Companies can enjoy the status of dormant company for a period of 5 consecutive years.