Introduction
Restoring a dormant company to active status is a strategic move for businesses ready to resume operations. This process involves specific legal steps to ensure compliance with the Companies Act, 2013.
Benefits of Reactivating a Dormant Company
Resumption of Business Activities
Allows the company to legally restart operations.
Access to Financial Resources
Enables the company to raise capital and secure loans.
Restoration of Compliance
Brings the company back into compliance with statutory requirements.
Eligibility Criteria
- The company must have been granted dormant status by the Registrar of Companies (ROC).
- The application for active status should be made within five years from the date of acquiring dormant status.
- There should be no outstanding dues or pending compliances.
Step-by-Step Process to Reactivate a Dormant Company
1. Board Resolution
- Convene a Board Meeting to pass a resolution approving the application for reactivation.
- Authorize a director to sign and submit the necessary documents.
2. Prepare and File Return in MSC-3
- Before applying for active status, prepare a dormant company return in Form MSC-3 for the financial year in which the application is being filed.
3. File Application in MSC-4
- Submit Form MSC-4 to the ROC, along with the following documents:
- Copy of the Board Resolution authorizing the application.
- Duly audited statement of financial position.
- Copy of the Memorandum and Articles of Association.
4. ROC Approval
- Upon satisfaction, the ROC will issue a certificate in Form MSC-5, confirming the company’s active status.
Documents Required
- Copy of the Board Resolution authorizing the application.
- Duly audited statement of financial position.
- Copy of the Memorandum and Articles of Association.
Important Considerations
Ensure all pending compliances are completed before applying for active status. Consult a professional to navigate the reactivation process smoothly.