Maintaining an inactive company doesn’t have to mean paying heavy annual compliance fees or facing strict regulatory penalties. Under the Companies Act, 2013, registering your Private Limited, Public Limited, or One Person Company for dormant status allows you to pause active operations legally while protecting your corporate entity, domain, and intellectual property. Whether you are holding assets for a future project or taking a temporary operational break, securing dormant status drastically lowers your ongoing compliance burden. At Corporate Mitras, we handle your entire MSC-1 filing process end-to-end—ensuring full Registrar of Companies (ROC) approval, zero compliance slip-ups, and absolute legal protection for up to five years. Protect your business assets and reduce maintenance costs today by consulting our experts for hassle-free dormant status filing!
Dormant Company Status Filing
Pause your business operations legally. Retain your corporate identity, protect your intellectual property, and drastically reduce annual compliance costs without winding up your company.
Apply for Dormant StatusWhy Choose Dormant Status?
Under the Companies Act, 2013, an inactive company can apply to the Registrar of Companies (ROC) to obtain the status of a "Dormant Company." This strategic move is ideal for businesses that wish to temporarily halt operations but plan to restart in the future.
Key Benefits
- Cost Reduction: Minimal annual compliance required (only Form MSC-3 is filed annually).
- Asset Protection: Safely hold real estate, assets, or Intellectual Property (IP) without active trading.
- Avoid Penalties: Prevents the ROC from automatically striking off your company for non-filing.
- Easy Revival: Reactivate your company seamlessly using Form MSC-4 when you are ready to resume business.
Eligibility & Legal Process
Who Can Apply?
- Companies with no "significant accounting transactions."
- No outstanding public deposits or defaults in payment.
- No outstanding statutory dues (taxes, duties, etc.).
- No pending management disputes or legal proceedings.
- Must pass a Special Resolution (approved by 75% of shareholders).
The Filing Process
- Board & General Meetings: Convene a Board meeting to approve the proposal, followed by an EGM to pass the Special Resolution.
- Form MGT-14: File the Special Resolution with the ROC within 30 days.
- Form MSC-1: Submit the application for dormant status with a statement of affairs certified by a Chartered Accountant.
- ROC Approval (MSC-2): The ROC issues a certificate allowing the dormant status.
Ready to Pause Your Compliance Burden?
Let Corporate Mitras handle the paperwork, CA certifications, and MCA filings for a smooth transition to Dormant Status.
Consult a Compliance ExpertFrequently Asked Questions
What is a Dormant Company under the Companies Act, 2013?
A dormant company is an entity formed for a future project or to hold an asset/intellectual property, and has no significant accounting transactions. It is officially registered as "inactive" with the MCA.
What is a "Significant Accounting Transaction"?
Any transaction other than payment of ROC fees, payments required by law, allotment of shares to fulfill requirements, or payments for office maintenance. If you perform active business trading, you cannot be dormant.
Do Dormant Companies need to file annual returns?
Yes, but the burden is significantly reduced. A dormant company only needs to file a simplified "Return of Dormant Company" in Form MSC-3 annually, instead of the heavy AOC-4 and MGT-7 filings.
How long can a company remain dormant?
A company can remain in the dormant status for a maximum period of 5 consecutive years. Before the 5-year period ends, it must either apply for active status or face strike-off procedures.