Startup & Business
Dormant Company — Meaning
A company granted dormant status under Section 455, with reduced compliance for up to five years.
What is Dormant Company?
A company formed for a future project or to hold an asset, or one with no significant accounting transactions for two financial years, can apply to the Registrar in Form MSC-1 for dormant status. It then files only an annual return of dormant company (MSC-3) and keeps minimum directors, for up to five consecutive years, and returns to active status with Form MSC-4. It is an alternative to strike-off for companies that want to keep their registration.
Need help with this?
Our CA team handles this for clients across India.
More Startup & Business terms
MCA (Ministry of Corporate Affairs)
India's government ministry administering the Companies Act and registering companies through the MCA portal.
ROC (Registrar of Companies)
Government authority under MCA that registers companies and LLPs and maintains statutory records.
DIN (Director Identification Number)
Unique 8-digit number assigned to every director of a company in India.
DSC (Digital Signature Certificate)
Electronic signature issued by certifying authorities — required for filing company/LLP documents with MCA.
Private Limited Company
A separate legal entity incorporated under the Companies Act 2013 — most common startup structure.
