1. Why Company Status Matters
In Indian commercial transactions, contracting with an entity that lacks valid legal operational capacity can render contracts unenforceable, trigger GST input tax credit reversals under Rule 86A, and lead to unrecoverable debt.
2. Master Status Breakdown & Legal Implications
| MCA Status | Legal Capacity | What It Means for Counterparties |
|---|---|---|
| Active | Full operational capacity | Safe to transact. The company is actively registered, eligible to file statutory returns, and maintain bank accounts. |
| Active (Non-Compliant) | Operational but restricted | Failed to file Form INC-22A (Active Company Tagging Identities). Restricted from filing changes in director structure or capital. |
| Under Process of Strike Off | Imminent dissolution | High risk. The ROC has published Form STK-5. The company will be struck off unless strong legal cause is shown within 30 days. Do not extend credit. |
| Strike Off / Struck Off | Zero legal capacity | Dissolved. Cannot transact, operate bank accounts, or sign agreements. Debts remain enforceable against individual promoters. |
| Dormant (Section 455) | Preservation mode only | The company has formally notified the ROC that it has no significant accounting transactions. Used for future projects or intellectual property holding. |
| Amalgamated | Merged into successor | Ceased independent existence following a court- or NCLT-sanctioned merger. All contracts and liabilities transition to the surviving parent entity. |
| Under Liquidation / CIRP | Controlled by Liquidator / IRP | Subject to Corporate Insolvency Resolution Process (CIRP) under IBC 2016 or winding up. Powers of the Board are suspended. |