Dormant Status of Company
Dormant Status of Company
Some companies are formed with future plans, hold assets like property or IP, or need time before starting full operations. Instead of keeping the company active and bearing annual compliance costs, businesses can apply for Dormant Status under the Companies Act. This pauses most compliance requirements while keeping the entity legally alive.
A proper application and clean documentation ensure the ROC accepts the request and the company remains compliant during the dormant period.
What We Assist With
• Assessing eligibility for dormant status
• Preparing Board and shareholder resolutions
• Filing Form MSC-1 with MCA along with required documents
• Drafting declarations, financial statements and necessary NOCs
• Advisory on compliance requirements during dormant period
• Support for reactivating the company later through Form MSC-4/MSC-3
• Guidance on tax, bank and statutory updates if required
Why Companies Choose Dormant Status
• To hold assets, trademarks, IP or property without full compliance burden
• To keep the company alive for future projects or investments
• To pause operations during restructuring or inactive phases
• To avoid penalties from missed annual filings
• To reduce cost of maintaining an inactive company
Frequently Asked Questions
A company with no significant financial transactions and minimal operations that has applied to MCA to be kept in a dormant state.
Any company that is not carrying on significant business activity and meets MCA’s eligibility criteria.
Form MSC-1 is used to apply for dormant status.
Yes. A special resolution is mandatory before filing MSC-1.
No business activities, no major accounting transactions, except:
• payment for ROC fees
• allotment/revision of shares
• office maintenance charges within limits