As per the Companies Act, 2013, a "Dormant Company" is

Solution

As per Section 455 of the Companies Act, 2013, a company may be declared dormant if it is an "inactive company" or is formed for a future project or to hold an asset/intellectual property and has had no "significant accounting transaction" for two financial years.  An "inactive company" is one that has not conducted business, had significant accounting transactions, or filed financial statements and annual returns for the preceding two financial years. Certain transactions are not considered "significant accounting transactions," such as paying fees to the Registrar, payments required by law, allotting shares to meet Act requirements, and payments for maintaining office and records.