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CS Executive · Company Law and Practice · Dormant Company

Veda Holdings Pvt Ltd was incorporated in 2023 solely to hold a trademark acquired for a product launch planned in future. It has had no significant accounting transaction since incorporation. Under section 455 of the Companies Act, 2013, what may the company do?

Such a company may apply to the Registrar for dormant status. Section 455(1) covers a company formed for a future project or to hold an asset or intellectual property that has no significant accounting transaction, and the application is made to the Registrar, not to the Tribunal.

  1. AApply to the Registrar for the status of a dormant companyCorrect
  2. BAutomatically become dormant without any application
  3. CApply to the National Company Law Tribunal for dormant status
  4. DApply to the Central Government for dormant status

Explanation

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

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