Dormant company status is an excellent tool for keeping the assets in the company for its future usage. Explain.

A dormant company means a company which is inactive i.e., not carrying out any business activity and has applied to the Registrar of Companies ("ROC") to change its status in the Register of Companies maintained by the said Registrar of Companies from "Active Company "to "Dormant Company". A company may become dormant immediately after its registration or after a few years of its incorporation. A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy land now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, 'dormant company' is an excellent tool for keeping assets in the company for its future usage. A dormant company may either be a public company or a private company or a One Person Company (OPC).