Govt begins tracking companies that failed to file Form ACTIVE

Last Updated at: May 30, 2020
2790
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. The e-Form ACTIVE is also known as e-Form INC -22A.

As a move of tightening the noose around shell firms, in 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. Besides, the government also asked the companies 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 the home. Furthermore, the companies that have not filed their financial statements and annual returns would be barred from ACTIVE status.

In 2019, the deadline to file the form with no penalties was April 25. Those who failed to do were fined Rs.10000. Also, the rules don’t allow them to change their business’ authorized capital structure. They were also not eligible for any merger. Now the companies that have missed to file on the said date may have to pay the late fee. The rules don’t allow them to change its authorized capital structure or be eligible for any merger. The companies will also be known as ACTIVE “non-compliant”. The government 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.

Get Your Company Registered

Who should apply Form Inc – 22A?

All companies that were incorporated on or before December 31st 2017 shall file Form Inc -22A.  They must fill all the details such as company names, address validation in the E-Form Inc -22A before the deadline. Whereas, the government has exempted some companies from filing. They are:

  • The companies incorporated on or after 01.01.2018
  • That struck-off from the registrar by the government.
  • Those companies the government is in the process of striking-off.
  • The companies that are under amalgamation or liquidation.
  • Those already dissolved companies.

The Governing body restricts which company from filing E-Form Inc – 22A?

The government restricts a company from filing the ACTIVE form if it had not filed its financial statements or the annual returns under Section 137 or Section 92. However, the government allows those companies that are under management dispute to file E-Form INC-22A. 

Details to file E-Form INC-22A or E-Form ACTIVE – 22A

The companies must provide the following information while filing E-Form ACTIVE 22A OR INC-22A:

  1. The company’s name
  2. Identification Number presented to the company or Company Identification Number  (CIN). Certificate of Incorporation issues the CIN.
  3. The registered address of the office along with the Pincode. The company must also share the location details along with the latitude and longitude.
  4. Details of the authority that certifies the business
  5. Information about all the directors involved in the business
  6. Details of the chief financial officer, company secretary
  7. Also, auditor and cost auditor information (if applicable) etc

The company must also share the PAN details, Bank account details etc while sharing the information about the above-mentioned stakeholders.

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 alphanumeric numbers issued by the income tax department. They are issues for different reasons. While the department offers PAN to all taxpayers, it offers TAN 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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Govt begins tracking companies that failed to file Form ACTIVE

2790

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. The e-Form ACTIVE is also known as e-Form INC -22A.

As a move of tightening the noose around shell firms, in 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. Besides, the government also asked the companies 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 the home. Furthermore, the companies that have not filed their financial statements and annual returns would be barred from ACTIVE status.

In 2019, the deadline to file the form with no penalties was April 25. Those who failed to do were fined Rs.10000. Also, the rules don’t allow them to change their business’ authorized capital structure. They were also not eligible for any merger. Now the companies that have missed to file on the said date may have to pay the late fee. The rules don’t allow them to change its authorized capital structure or be eligible for any merger. The companies will also be known as ACTIVE “non-compliant”. The government 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.

Get Your Company Registered

Who should apply Form Inc – 22A?

All companies that were incorporated on or before December 31st 2017 shall file Form Inc -22A.  They must fill all the details such as company names, address validation in the E-Form Inc -22A before the deadline. Whereas, the government has exempted some companies from filing. They are:

  • The companies incorporated on or after 01.01.2018
  • That struck-off from the registrar by the government.
  • Those companies the government is in the process of striking-off.
  • The companies that are under amalgamation or liquidation.
  • Those already dissolved companies.

The Governing body restricts which company from filing E-Form Inc – 22A?

The government restricts a company from filing the ACTIVE form if it had not filed its financial statements or the annual returns under Section 137 or Section 92. However, the government allows those companies that are under management dispute to file E-Form INC-22A. 

Details to file E-Form INC-22A or E-Form ACTIVE – 22A

The companies must provide the following information while filing E-Form ACTIVE 22A OR INC-22A:

  1. The company’s name
  2. Identification Number presented to the company or Company Identification Number  (CIN). Certificate of Incorporation issues the CIN.
  3. The registered address of the office along with the Pincode. The company must also share the location details along with the latitude and longitude.
  4. Details of the authority that certifies the business
  5. Information about all the directors involved in the business
  6. Details of the chief financial officer, company secretary
  7. Also, auditor and cost auditor information (if applicable) etc

The company must also share the PAN details, Bank account details etc while sharing the information about the above-mentioned stakeholders.

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 alphanumeric numbers issued by the income tax department. They are issues for different reasons. While the department offers PAN to all taxpayers, it offers TAN 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.