How a dormant company can get status as active

Dormant companies do have certain legal compliance and reporting obligations to fulfill for maintaining the company on the official register.

Please read our earlier article to know how to get status of Dormant Company and its legal compliance requirements as per companies act 2013.

dormant company get status active

In this article, we will discuss how a dormant company can get back its status as active in the official register.

To get back the status as active, company is required to file form MSC-4 with ROC accompanied by a return in Form MSC-3.

If company started carrying any significant transaction having status as dormant then within 7 days from the date of transaction, company need to file an application with ROC in form MSC-4 accompanied by a return in Form MSC-3 to get back the status active from the earlier status of dormant.

After considering the application, ROC issues a certificate in Form MSC-5 along with status of an active company.

As per rule 7 of Companies (Miscellaneous) Rules, 2014, the company shall file return or returns of allotment and change in directors in the manner and within the time specified in the Companies Act 2013.

Where Registrar has reasonable cause to believe that the dormant company under it’s jurisdiction has been functioning in any manner directly or indirectly, he may after giving reasonable opportunity of being heard initiate proceedings for inquiry under section 206 of the Companies Act 2013.

If after inquiry, it’s found that the company has actually been functioning, the Registrar may remove the name of such company from the registrar of dormant companies and treat it as an active company.

Registrar shall initiate the process of striking off the name of the company if it remains as dormant for a period of 5 consecutive years. To know more read our article on how dormant company name can be strike off by ROC.

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