The Company Status- Here is what you all must know

The Company Status- Here is what you all must know

When you research a company, you would go across several status of the companies. This status is fairly one of the most valuable components for business owners. Any status of the company tells you whether the company is functional or not. In the concept of business states, if you're a profound professional or owner of the organization you should primarily check the status of the companies (Private and Public) incorporated in India, as it sums up the real image of the company. Meanwhile, most of the people are only well-versed of active and in-active status. However, there are total 14 status which could reflect in any of the company you're looking for your business deals. This company information will help you to know the operational condition of the company and other critical details.

Here's the list of possible status of a company• • • • • • • • • • • •

Active Dormant Dormant Under Section 455 Active in Progress Amalgamated Converted to LLP Converted to LLP and Dissolved Dissolved Under Liquidation Liquidated Under Process of Striking Off Strike Off

ACTIVE: As per last few amendments by the Government of India, the Ministry of Corporate Affairs through a notification dated 21st Feb ‘19’ has introduced the Companies amendment rules, 2019. Under the Companies Act (an act that regulates incorporation, responsibilities,

directors details, dissolution of a company, a company is active as soon as it is incorporated.

Basically, a company registered in India retains active status if it keeps on trading and is regular in filing its balance sheets, profit and loss statements, annual returns, conducts, AGM and adheres to other rules and regulations.

DORMANT: Under the companies act 2013, the section 455 was introduced when the Dormant word was discovered, a Company is said to be dormant if it is not operating or any kind of business activity or not receiving any form of income. On the other hand, if any company has not filed its annual returns for two year as then such a company will also be called as dormant company. Such companies do not need to submit various company compliance forms, and hence, individual firms take this step if they anticipate that the coming years might not see a lot of business as this helps them cut further costs.

ACTIVE IN PROGRESS- This status comes when any company continues its operations, it requests Registrar of Companies by an application for getting back into action. At this situation, ROC changes its status to Active in Progress and provides 21 days to file all pending returns. After successful submission, the company receives Active status or in case it fails the completion of such returns, it could get back to Dormant status.

AMALGAMATED- When two or more companies have legally liquidated together to form a new company, this status of a company will be marked as amalgamated. Amalgamation can occur in two ways either as a merger or as acquisitions. The companies may combine for diversification of activities, expansion of services, reduction in competition and for an increase in efficiency.

DISSOLVED-When a company close its operation it is said to be dissolved. In this case, no debt is present and the assets and liabilities of the company can be settled within 12 months and the company is expired.

LIQUIDATED- A company is said to be liquidated when all its assets are liquidated and the business comes to an end or unregistered in Registrar of Companies. During the process of liquidation, a company is liquidated when it is ascertained that the business is not in any state to continue. This may happen due to various reasons such as insolvency, unwillingness to carry on with the operations, etc.

You can check the status of each and every company at www.thecompanycheck.com. We provide a platform, where you can check all the Indian Companies. You can also access balance sheet, profit and loss, research reports on Indian companies at www.thecompanycheck.com.