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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Meridian Heritage Pvt Ltd was incorporated under the Companies Act, 2013 only to hold a trademark it plans to commercialise in future. It has made no significant accounting transaction. What may the company do under the Act?

The company may apply to the Registrar for dormant company status. The Act allows a company formed for a future project or to hold an asset or intellectual property, and having no significant accounting transaction, to seek this status.

  1. AApply to the Registrar for the status of a dormant companyCorrect
  2. BApply to the Tribunal to be declared an unregistered company
  3. CConvert itself automatically into a one person company
  4. DRemain exempt from filing any document with the Registrar without any application

Explanation

Section 455(1) lets a company formed for a future project or to hold an asset or intellectual property, with no significant accounting transaction, apply to the Registrar for dormant status. The Tribunal route is not provided for this purpose, and no automatic exemption or conversion arises.

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