Activation Procedure for a Dormant Company
When the company has not engaged with any meaningful relationship, then that company is stated to be a dormant company. This is a status that doesn’t just happen; one has to apply for it. Moreover, there are certain conditions for company dormancy that are needed to be followed. That being said, a dormant status is suited for companies that have long term goals. Now, once the dormant period is over, the company has to be reactivated. This blog is dedicated to telling about this process of reactivation.
Steps to reactivate a dormant company
According to Companies act, the companies who now want to come out of dormant or inactive stage and re-activate or become active again, have to follow through with the steps that are given below:
- File the annual returns and balance sheets of the company first, along with the Form 61 for company reactivation. Points to remember are:
- This application has to be filed for Director, manager or the Director of the company.
- The detailed application of this matter shall be as per the Company Law Board regulations of 1991.
- The documents required for this process are:
- Information about the date of incorporation of the company
- Certificate of Incorporation
- MOA and AMOA of the company.
- Income tax return filings that have been done up until the time for applying reactivation.
- After you have filed the application for dormant company reactivation in the Form 61, you have 21 days to file all the annual returns and the balance sheets for the specified financial years. After the company has been successfully able to do so, its status shall be changed back to active. If the process is unsuccessful, the status shall again be changed to Dormant.
Note: The specified period is the dormant period of the company
The forms required for annual returns are:
- Form 23B: Intimation by auditor to registrar
- Form 23AC: Balance sheet filing
- Form 20B: Annual Return for Companies
- Form 23ACA: Profit and Loss account filing
- Form 66: Compliance Certificate.
Once you have gone through all the formalities that have been mentioned here, your company shall be active and you shall be ready to go about your business.