This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
As per Indian Laws, there is no concept of "Zero Declaration ", a company can be classified as "dormant company" can enjoy that status, this rule does not apply for Income Tax Filings and another statutory compliance requirement under various Labour Laws.
Dormant company or inactive company is referred to the company registered under the Companies Act,2013 for the foreseeable or future project and the company to hold the assets and IPR and has no accounting transaction.
Terms to understand
Inactive company :
The inactive company refers to the company which didn’t comply to their yearly compliance i.e., a company has not filed their financial statements and IT filling for the last 2 years and the company which has not been carrying any business transaction and operations.
Significant/ relevant Accounting transaction
It means any transaction other than the following are as follows:
Any payment to the ROC
Any payment made to fulfil any the requirement of Companies ACT,2013.
Any payment for the maintenance of the company records and office.
Generally, the register shall be maintained regarding dormant companies in the prescribed format.
If a company failed to the company and has not filed annual returns(IT returns) and Roc fillings for the 2 years consecutively, shall issue a notice to ROC to maintain a register for Dormant companies.
If the company is failed to do the above compliance then, the ROC has the power to strike off the name from the list of Registrar of Dormant company list.
FORMS REQUIRED FOR THE Dormant Company
MCS-1- for NOC from owners
MSC-2- for status
,MCS-3- for returns
MSC-4- status for seeking active
MSC-5- certificate for allowing an active company applicant.
Requirements:
3 directors in case of public company, 2 in case of private limited and 1 in OPC
• Annual return and financial position audited by CA should be filled
• Eligibility require meeting the following criteria
• No inspection/ enquired has ordered against company
• There should not any case/prosecution against company under any law
• Company should not have any public deposits or outstanding
• No deputy in management
for further clarification visit our website www.virtualauditor.in