Active Companies Tagging Identities and Verification – Amendment in Companies (Incorporation) Amendment Rules 2019

The Ministry of Corporate Affairs, on 21^st day of February 2019 has notified Companies (Incorporation) Amendment Rules 2019, to insert Rule 25A (Active Companies Tagging Identities and Verification) in the existing Companies (Incorporation) Rules, 2014 which requires every company incorporated on or before 31^st day of December 2017 to file particulars of the Company and its registered office in prescribed e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25^th day of April, 2019.   Pre-conditions prior to the filing of above said Form

1. Companies shall not have defaulted in the filing of financial statements as mandated under the provisions of Section 137 of the Companies Act, 2013 (except companies which are under management dispute);
2. Companies shall not have defaulted in the filing of annual return as mandated under the provisions of Section 92 of the Companies Act, 2013 (except companies which are under management dispute);
3. DIN of all directors shall not be deactivated due to on-filing of Form DIR-3 KYC; and
4. DIN of all directors shall not be deactivated due to non-compliance of provisions of section 164 (2) of the Companies Act, 2013.

  Mandatory attachments to the abovesaid Form Photograph of the registered office showing:

• the external building;
• inside office; and
• One KMP/director whose DSC would be affixed on the said form

  Exemptions from abovesaid compliance requirement

1. Companies under liquidation;
2. Companies which have been struck off or are in process of being struck off;
3. Companies which have been amalgamated; and
4. Companies which have been dissolved.

Failure to comply The Company which fails to comply with the aforesaid requirement would face the following consequences:

1. The defaulting company would be marked as Active Non-Compliant Company on the web portal of Ministry of Corporate Affairs;
2. Every Company and its defaulting officer would be penalized with a fine of INR 1,000./- per day till the default continues but not exceeding INR 1,00,000/-;
3. The Companies request for registration of:
   • Change of authorized capital (e-Form SH-7);
   • Change in Paid up share capital (e-PAS-3)
   • Changes in director except cessation(e-DIR-12)
   • Change in registered office (e-INC-22)
   • Amalgamation, de-merger (e-Form INC-28)

  The abovesaid notification would be effective from the 25^th day of February 2019. The said notification is yet to be published in the official gazette. Last Updated: 22nd February 2019 This article is contributed by: Luv Malhotra Senior Manager, Legal  

Tag: Verification