1 . Reduction in compliance costs : After obtaining Dormant Status , only one form i . e . MSC 3 indicating financial position of the company duly audited by Chartered Accountant in practice need to be filed along with form fees as may be prescribed with ROC within 30 days of the end of financial year . Due to this , the compliances and forms to be filed by the company are reduced to a large extent , which gives relaxation in government fees and professional fees . Also , Dormant Company is not considered for the purpose of counting number of Companies for Statutory Audit . However , this does not give any relief in filing in the case of any change in shares , directors etc . The company needs to file the return or intimation as a normal company .
2 . Exemptions :
� No need to hold a board meeting in each quarter , it can hold a board meeting in each half with at least 90 days gap .
� Provisions of rotation of auditor do not apply .
� No need to have Cash Flow Statement
PROCEDURE :
� Hold Board Meeting to call Extraordinary General Meeting
� Obtain Certificate from Chartered Accountant
� Obtain Approval of Members by way of special resolution
� Obtain Auditor ’ s Certificate
� Statement of Affairs duly certified by a Chartered Accountant or Auditor ( s ) of the company
� Latest Financial Statement and Annual Return of the Company , in case the same are filed with Registrar
� Certificate regarding no dispute in the management or ownership
� Consent of lender , if any loan is outstanding
� File form MGT 14 for special resolution
� File Form MCS-1 with the registrar
� Form MCS 1 in STP form , therefore it is auto approved .
ARE THERE ANY CONDITIONS FOR APPLYING FOR DORMANT STATUS ?
�
� �
� � � �
No inspection , inquiry , or investigation or prosecution pending in any court against the company No public deposits or interest thereon outstanding for payment No outstanding loan , secured or unsecured . If there are unsecured loans then the consent of the lender should be obtained and enclosed along with the form No dispute or difference amongst the management or promoters of the company No outstanding tax dues either to central or state government or local authorities No defaulted in payment of its workmen ’ s dues Not a listed company
If you have any query please comment in the comment box below or Contact us . We would love to help you . Closing a Ltd Company