Preetha has recently become Director of a Company. She wants to know about 'active' and 'inactive' status shown in MCA website. Explain the concept of 'Inactive Company' to her referring the relevant provisions of the Co

'Inactive company' means a company which, (a) has not been carrying on any business or operation, or (b) has not made any significant accounting transaction during the last two financial years, or (c) has not filed financial statements and annual returns during the last two financial years. 'Dormant company' is formed and registered for a future project to hold an asset or intellectual property and has no significant accounting transaction. Such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.