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Dormant Status of Company | Beyonte Compliance
Business Services ยท Corporate Status

Dormant Status of Company

Apply for dormant company status under Section 455 of the Companies Act 2013 โ€” MSC-1 application, special resolution, and annual MSC-3 to maintain status with minimal compliance burden.

  • ๐Ÿ˜ด Dormant Company
  • ๐Ÿ“„ MSC-1 Filing
  • ๐Ÿข Section 455
  • โœ… Annual MSC-3
  • ๐Ÿ“ฌ ROC Compliance
๐Ÿ˜ด

Apply for dormant company status

Share your company details. We will handle the MSC-1 application and all compliance filings.

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What We Handle

A complete dormant status of company package

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Special Resolution

Special resolution passed at an EGM or by postal ballot authorising the application for dormant status.

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Form MSC-1 Filing

MSC-1 (Application for Dormant Status) filed with ROC โ€” includes special resolution and required documents.

๐Ÿข

Section 455 Compliance

Verification that all conditions under Section 455 are met before filing the application.

๐Ÿ“Š

Annual MSC-3 Return

Annual return of dormant company (Form MSC-3) filed every year to maintain dormant status.

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MSC-4 to Reactivate

When ready to resume operations, MSC-4 filed to restore active status.

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Pending Compliance Clearance

All outstanding compliance (returns, pending filings) cleared before MSC-1 application.

Key Requirements

What is needed for dormant status of company

No Significant Transactions

Company must have no significant accounting transactions in the last 2 financial years before applying.

No Outstanding Secured Loans

Company must not have any outstanding secured loans or debentures at the time of application.

Special Resolution Required

A special resolution of shareholders must be passed to apply for dormant status.

All Returns Up to Date

All annual returns and financial statements must be filed and up to date before MSC-1 is filed.

Annual MSC-3 Return

A dormant company must file annual return MSC-3 every year to retain dormant status.

Maximum 5 Years of Dormancy

A company can remain dormant for a maximum of 5 consecutive years before it must resume operations.

ℹ️

A dormant company must still file Form MSC-3 every year. Failure to file MSC-3 can result in the company losing its dormant status or facing penalties. We set up calendar reminders and file MSC-3 annually on your behalf.

Common Pitfalls

Common issues with dormant status of company

Outstanding compliance not clearedMSC-1 rejected if annual returns or financial statements are pending โ€” clear all backlogs first.
Secured loans outstandingApplication rejected if secured loans exist โ€” these must be settled before dormancy application.
Special resolution not passedMSC-1 filed without a valid special resolution โ€” the application is invalid.
Annual MSC-3 missedDormant status lapses if MSC-3 is not filed annually โ€” company reverts to active non-compliant status.
Dormancy period exceededCompany remains dormant beyond 5 years โ€” must be struck off or restored to active status.
Significant transactions during dormancyAny significant accounting transaction during dormancy disqualifies the company from the status.
How It Works

Simple steps, no surprises

1

Eligibility checked

All conditions under Section 455 verified โ€” no significant transactions, no secured loans, all filings current.

2

Special resolution passed

Special resolution passed at EGM or by postal ballot authorising application for dormant status.

3

MSC-1 filed

Form MSC-1 filed with ROC along with special resolution, list of directors and other required documents.

4

Annual MSC-3 maintained

MSC-3 filed annually to retain dormant status โ€” MSC-4 filed when ready to resume operations.

FAQ

Frequently asked questions

A dormant company is one that has been incorporated for a future project or to hold assets/intellectual property and has had no significant accounting transactions for the last 2 financial years. Section 455 allows such companies to apply for dormant status.

Form MSC-1 is the application filed by a company to obtain dormant status from the ROC. It must be accompanied by a special resolution of shareholders, the list of directors and a statement confirming no significant transactions in the last 2 years.

Yes. A dormant company must file Form MSC-3 (Annual Return of Dormant Company) every year. Failure to file MSC-3 can result in loss of dormant status and penalties.

A company can remain dormant for a maximum of 5 consecutive years under Section 455. After 5 years, it must either resume active operations or initiate winding up.

A dormant company files Form MSC-4 with the ROC to restore its active status. After filing MSC-4 and obtaining the ROC's acknowledgement, the company can resume normal business operations.

Ready to apply for dormant company status?

We handle MSC-1 application, special resolution, annual MSC-3 and reactivation via MSC-4.