A director whose DIN was deactivated
A director misses the yearly KYC and finds they cannot sign a filing.
Read the scenario →Illustrative example
Annual filings for a company that never started trading
A company registered years ago and never operated. Its filings were ignored.
Scenario type: Dormant private limited company. This is a hypothetical example, not a real client.
The situation
A founder registered a company, then moved on to another project. Years later a bank asks for filed financials, and none exist.
The challenges
- Several years of annual returns and financial statements are pending
- Late fees have been adding up each day
- Directors face personal exposure for continued default
How it is typically handled
- 1Confirm the company's status on the registry and list every pending filing
- 2Prepare nil or actual financial statements for each year
- 3File pending returns in order and pay the applicable fees
- 4Decide whether to revive the company, or to close it formally
What a good outcome looks like
The default stops accruing and the founder can choose a clean path: run the company properly or wind it down in an orderly way.
Key takeaways
- A company with no revenue still has filing duties
- Late fees are charged per day of delay
- If you will not use a company, close it formally
This scenario is general information for illustration. Rules, thresholds and deadlines change and depend on your facts, so confirm the position for your own situation with a qualified professional.
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