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

Sunrise Projects Pvt Ltd was incorporated to hold a patent for a future product and has had no significant accounting transaction since incorporation. Which course is available to it under the Companies Act, 2013?

Such a company may apply to the Registrar in the prescribed manner for dormant status. Section 455(1) covers companies formed for a future project or to hold an asset or intellectual property with no significant accounting transaction. The Registrar, not the Tribunal, grants it, and it is not automatic.

  1. AIt may apply to the Registrar in the prescribed manner for the status of a dormant companyCorrect
  2. BIt must apply to the National Company Law Tribunal for dormant status
  3. CIt automatically becomes dormant on completing one year from incorporation
  4. DIt may become dormant only after being struck off the register

Explanation

Section 455(1) allows a company formed for a future project or to hold an asset or intellectual property, with no significant accounting transaction, to apply to the Registrar for dormant status. The application goes to the Registrar, not the Tribunal, and dormancy is not automatic.

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