Regulation 62 — Inactive Company

(1) Subject to the provisions of section 424 of the Act, a company
other than a listed company may by a special resolution passed in a general meeting, file an
application on a specified format App-2 to the registrar for obtaining status of an inactive company.
The registrar on consideration of the application shall allow the status of inactive company and issue
a certificate in the form set out in Annexure-M.
(2) Subject to sub-section (4) of section 424 of the Act, in case of a company which has
not filed financial statements or annual returns for two financial years consecutively, the registrar
shall issue a notice to that company and enter the name of such company in the register maintained
for inactive companies.
(3) An inactive company shall comply with the following requirements to retain its
inactive status in the register—
(i) shall have minimum number of one director in case of a single member company, two
directors in case of a private limited company and three directors in case of public
limited company;
(ii) shall file Annual return on Form-A along with payment of annual fee as per Seventh
Schedule to the Act within a period of 30-days from the close of each calendar year.

(4) Any company which was earlier granted status of inactive company and now desirous
of starting operations may by a special resolution passed in a general meeting, shall apply to the
registrar on a specified format App-2 to become active company. The registrar on consideration of
the application shall grant the status of active company and issue a certificate in the form set out in
Annexure-N.