Obtaining status of Dormant company

Dormant companies are an excellent option for those promoters who want to hold an asset under their corporate umbrella to be used at a later stage. The provision for obtaining the status of a dormant company is a new and effective tool that can be of great advantage for foreign investors as well. In order to apply for obtaining the said status, there are certain conditions that need to be adhered to. Some of those conditions can include that the applicant company is free form any legal inspections or investigations in the past, the company does not have any outstanding public deposits as such nor is it under default for monetary payments. Apart from these, there are other conditions too that have been listed in detail under the CA2013. In order to obtain the status of a dormant company, there is a systematic procedure that needs to be followed which begins with a formal board meeting. A particular director would have to be authorised for applying as a dormant status with the ROC and the notice will have to be issued in the general meeting of the company. The procedure also requires the filling up of the forms that are available with the registrar and sending them for approval along with other relevant documents. Once the form is approved, a system generated certificate is sent to the company declaring its dormant status.