Dormant Status Filing

Dormant status filing offers a practical solution for companies that are inactive but wish to retain their legal existence for future projects or to hold assets. This process, governed by Section 455 of the Companies Act, 2013, allows a company to apply to the Registrar of Companies (ROC) for a “dormant company” designation. While in dormant status, the company’s compliance burden is significantly reduced, as it has minimal or no significant accounting transactions. However, it still needs to fulfill certain basic compliances, such as filing annual returns in Form MSC-3 and maintaining a minimum number of directors. Obtaining dormant status helps protect the company’s name and corporate identity without incurring the full compliance costs of an active entity, providing flexibility for future reactivation when business operations are ready to resume.