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14 company status you must know

Whenever you will research a Company, you would come across a word u2018Statusu2019. <br>Every company in India hasu00a0a status. <br>What does this u2018Statusu2019 mean? <br>Is it important to give attention to it?<br>Well I guess, Yes. The u2018Statusu2019u00a0tell the current state of the company. <br>Whether it is active and operating or dormant or it has been struck off and closed. <br>There are 14 such status that a company could be carrying.<br>

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14 company status you must know

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  1. 14 company status you must know

  2. Whenever you will research a Company, you would come across a word ‘Status’. • Every company in India has a status. • What does this ‘Status’ mean? • Is it important to give attention to it? • Well I guess, Yes. The ‘Status’ tell the current state of the company. • Whether it is active and operating or dormant or it has been struck off and closed. • There are 14 such status that a company could be carrying.

  3. This is how we can categorise them: • Active • Dormant • Active in Progress • Under liquidation • Under process of Striking Off • Closed • Strike off • Amalgamated • Liquidated • Dissolved • Converted to LLP • Converted to LLP and dissolved • Other status: • Not available for e-filing • To be migrated • Captured

  4. What do these statuses mean? • Active:Out of nearly 15 lacs companies in India, around 10.5 lacs are Active companies. An ‘Active’ means it is operating and is regular in filling its Balance sheets, Profit & Loss Statements, Annual Returns and other statutory documents. When a company is incorporated, it is given the status of ‘Active’. • Dormant: There are around 1.4 lac dormant companies in India. A Dormant company is an inactive company which has not been carrying any business or has not made any significant accounting transaction in the last two years.

  5. Active in progress:A dormant company is allowed 21 days by the Ministry to do its pending annual filings. During this period the status of the company remains as ‘Active in Progress’. After these 21 days, if the company has still not filed its financials, then the company is given the status of ‘Dormant’. • Strike Off:There are currently 2.4 lacs Struck off companies in India. These Companies are registered under Companies Act but due to various reasons they are inoperative or defunct. They, therefore, can apply to Registrar of Companies to get their name struck off from the companies register.

  6. Under process of Striking Off:A company which is undergoing the process of ‘Striking Off’ either voluntarily or by action of the Registrar is given the status ‘Under process of Striking Off’. • Liquidated / Dissolved:A company is given the status of Dissolved or Liquidated when its affairs have been completely wound up. In such case, the company is then given the status of ‘Dissolved / Liquidated’ and the company ceases to exist. • Under liquidation: When a company is undergoing a winding up process, dissolution or liquidation, it is said to be under liquidation.

  7. Amalgamated: A company is said to be ‘Amalgamated’ when it has merged into another company. For example there are two companies – A Limited & B Limited. A Limited merges into B Limited. Now, A Limited as such will cease to exist and only one entity will remain ‘AB Limited’. • Converted to LLP and Dissolved / Converted to LLP:Companies Act allows a Company to convert itself into an LLP by following certain procedures. When the Company gets converted into an LLP, the Company ceases to exist and only the new LLP remains.

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