Section 424 (5) An inactive company shall have such minimum number of directors, file such documents as may be specified by the Commission through regulations to the registrar to retain its inactive status in the register and pay such annual fee as prescribed in the Seventh Schedule and may become an active company on an application made in this behalf accompanied by such documents as may be specified by the Commission through regulations on payment of such fee as prescribed in the Seventh Schedule.
36. Inactive Company .—
(1) Subject to the provisions of section 424 of the Act, a company may file an application to the registrar as per Form 38 for obtaining status of an inactive company.
(2) 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 D along with payment of annual fee as per Seventh Schedule to the Act.
(3) Any company which was earlier granted status of inactive company and now desirous of starting operations shall apply as per Form 39 to the registrar to become active company.