Govt begins tracking companies that failed to file Form ACTIVE

Last Updated at: November 04, 2019
2620
Govt begins tracking companies that failed to file Form ACTIVE

The Ministry of Corporate Affairs (MCA) has started identifying shell companies and directors that have not yet filed the form e-22 or e-Form ACTIVE, which means Active Companies Tagging Identities and Verification.

As a move of tightening the noose around shell firms, on February 2019, the MCA made it mandatory for all companies, incorporated till December 2017, to file Form ACTIVE. This ACTIVE Form requires companies to prove their active status by uploading photographs of directors and the registered address displaying corporate identity number, company name, email and phone number. In addition, companies were also asked to upload a photo of their interiors. Through these details, authorities were looking to track companies that were using one building. However, some start-ups had sought exemptions, stating the reason that many of them operate in shared premises or out of home. Companies that have not filed their financial statements and annual returns would be barred from ACTIVE status.

Get Your Company Registered

The deadline to file the form with no penalties was April 25, 2019 after which the late fine would be Rs 10,000. Now the companies that have missed to file on the said date may have to pay the late fee and would not be allowed to change its authorized capital structure or be eligible for any merger.

The move is aimed at curbing multiple companies that were operating in a single building and professionals who have been signing off on company filings without due diligence.

Is interest exempt from GST?

Yes, it is. Income received from instruments like reverse repo and repo in form of interest are hence exempted from GST. Understand the procedure for GST registration and GST returns here.

Who can digitally sign the MSME Form I:

Any director or the manager of the firm can sign the MSME I form as their signature is booked on MCA Portal. More about Udyog Aadhar Registration

What are PAN and TAN?

PAN and TAN are ten digital alpha numeric numbers issued by the income tax department for different reasons. PAN is offered to all tax payers. TAN is offered to only eligible people. More on Income Tax Return Filing

What is the difference between ISO 9001 certification and ISO 9001 accreditation?

Both ISO 9001 certification and ISO 9001 accreditation are same. Both meets the quality management system (QMS) of ISO standards. Learn more about ISO Certification.

Where to go for applying for 80G certificate?

An Income Tax Office which has discretion over your registered NGO address is where you need to apply for the 80G Certificate. More info on NGO Registration in india.

Govt begins tracking companies that failed to file Form ACTIVE

2620

The Ministry of Corporate Affairs (MCA) has started identifying shell companies and directors that have not yet filed the form e-22 or e-Form ACTIVE, which means Active Companies Tagging Identities and Verification.

As a move of tightening the noose around shell firms, on February 2019, the MCA made it mandatory for all companies, incorporated till December 2017, to file Form ACTIVE. This ACTIVE Form requires companies to prove their active status by uploading photographs of directors and the registered address displaying corporate identity number, company name, email and phone number. In addition, companies were also asked to upload a photo of their interiors. Through these details, authorities were looking to track companies that were using one building. However, some start-ups had sought exemptions, stating the reason that many of them operate in shared premises or out of home. Companies that have not filed their financial statements and annual returns would be barred from ACTIVE status.

Get Your Company Registered

The deadline to file the form with no penalties was April 25, 2019 after which the late fine would be Rs 10,000. Now the companies that have missed to file on the said date may have to pay the late fee and would not be allowed to change its authorized capital structure or be eligible for any merger.

The move is aimed at curbing multiple companies that were operating in a single building and professionals who have been signing off on company filings without due diligence.

Is interest exempt from GST?

Yes, it is. Income received from instruments like reverse repo and repo in form of interest are hence exempted from GST. Understand the procedure for GST registration and GST returns here.

Who can digitally sign the MSME Form I:

Any director or the manager of the firm can sign the MSME I form as their signature is booked on MCA Portal. More about Udyog Aadhar Registration

What are PAN and TAN?

PAN and TAN are ten digital alpha numeric numbers issued by the income tax department for different reasons. PAN is offered to all tax payers. TAN is offered to only eligible people. More on Income Tax Return Filing

What is the difference between ISO 9001 certification and ISO 9001 accreditation?

Both ISO 9001 certification and ISO 9001 accreditation are same. Both meets the quality management system (QMS) of ISO standards. Learn more about ISO Certification.

Where to go for applying for 80G certificate?

An Income Tax Office which has discretion over your registered NGO address is where you need to apply for the 80G Certificate. More info on NGO Registration in india.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.