Dormant company

                                                           Dormant company

                                                                   SEC. 455

Dormant company means a company registered under company act 2013. Dormant company is mainly signifying a particular status of a company. This type of company mainly formed for future project moreover holds assets or intellectual property and has no significant accounting transaction or an inactive company. Such type of company may make an application to the registrar for obtaining the status of a dormant company.  

INACTIVE COMPANY:

                                                Inactive company means a company which has not been carrying on any business or operation or has not made any significant accounting transaction during the last two financial years or has not filed annual accounts or annual return during the last two financial years.

SIGNIFICANT ACCOUNTING TRANSACTION:                                                                             

  Any transaction other than:

1.       Payment of fees by company to the registrar.

2.       Payment made by the company to fulfill the requirement of any act.

3.       Allotment of shares to fulfill the requirement of this act.

4.       Payment for maintenance of its office and records.

Exemption to dormant company:

                             

1.       Financial statement does not include cash flow statement.

2.       It is required to hold at least one board meeting in each half of the year and gap between two board meeting not less than 90 days.