INC- 22 A (Active e-form) Introduced by MCA for Company KYC

MCA with the amendment in the companies rules has introduced E-form active (Form-22 A) for companies registered before 31st December 2017. The form introduces KYC for companies; the penalty for not filing is deactivation of the companies.

What is E-Form Active (INC-22A)

The 2019 amendment of company rules has introduced Active company tagging and verification as per the rules. The said compliance for the companies is to be completed before 16 June 2019, or the company will be charged a heavy Fine of Rs. 10,000.

Applicability of e-Form-22A

The need for compliance is essential for companies that were registered on or before 31st December 2017. Although the companies need to complete the compliances (Annual Return and Financial Statements) before 16 June 2019.

The companies that complete the following compliance their status on MCA master Data will be reflected as "ACTIVE Compliant".

Companies that have management dispute and have shared the information about the same with the Registrar of Companies can file active e-form without completing the annual compliances.

Companies Exempted

The companies that have been exempted from filing the  E-Form 22A are:

• The companies that have been struck off or are under the process of being struck off
• The companies that are under the liquidation process
• The companies that are either amalgamated or dissolved or are under the process.
• Companies that are registered after 31st December 2017

Mandatory Documents For Filing Form- 22A

Following documents are necessary for the filing Active company Tagging Identities and Verification(ACTIVE)

Particulars of the Company

• Photograph of the registered Office showing the latitude and longitude of the company
• E-mail ID of the company provided at the time of incorporation

Details of Company Director

• Photograph of the director affixing his signature
• DSC and DIN of the company director

Specifics of Authorised CS

• Digital signature for verification of the form
• PAN, Name and Membership details of the CS

Compliance Details

SRN number issued while submitting the following forms for the financial year 2017-18:

• Financial Statement of the company (AOC-4)
• Form for filing Annual Return of the company(MGT-7)

Consequences of Non-Filing or Late Filing E-Form Active

The companies had to complete the compliance before 25th April 2019 but now MCA has extended the date to 15th June 2019. 

The companies that are non-compliant will be charged a hefty penalty of Rs 10,000 and in some instances, they might be issued a notice of being struck Off from the MCA master data.

The companies that are Marked as "ACTIVE-Non-Compliant" will be barred from the following:

• Alteration in the Share Capital (SH-7)
• Return of Allotment (PAS-3)
• Particulars of appointment of a director (DIR-12)
• Change in the Registered Office(INC-22)
• Notice of Order of court (INC-28)

The companies will be marked "Active- Compliant" once again when they submit the late fee along with the form.

The form has been uploaded on the MCA website, and as per the notification, the amendment will be applicable from 25th February 2019.

Extension From MCA

MCA has provided more time for companies to comply with the rules and regulations of E-form ACTIVE (INC-22A), the companies need to file the form before 15th June 2019. 

This move came after the ministry received representation from various industry associations where many companies are yet to comply with the set of rules and regulations; startups, in particular, have not yet provided the information associated with the ACTIVE e-form as they are operating away from the home or on shared premises.

A non-compliant company will not be able to change its corporate structure or carry out any kind of merger and acquisition.