Definition of passive status

1. Based on the provisions in article 43 of this law, any entity that fails to submit an annual balance sheet for two years in a row shall be notified in writing by the NRC within 30 days of conclusion of the fore-mentioned period.

2. In the event the business entity fails to comply with the obligation the 30 day period from notification and not later than 60 days from the conclusion of the time limit for submission of balance sheets, the NRC shall transfer that entity under the ‘passive status' category, and the note "PASSIVE" shall appear on all the documents issued, based on the register.  

3. The provisions in item 1 of this article shall not be applicable for business entities that have notified the suspension of their activities, in line with article 43 of this law.