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New Compliance requirement for Companies: E-Form 22A – ACTIVE

[Active Company Tagging Identities and Verification]

The Ministry of Corporate affairs (MCA) has recently introduced a new address validation form which has to be mandatorily complied with by companies.

This is for the first time that a photographic evidence with regard to existence of the registered office of the company along with the photograph of director or Key Management Person has been made mandatory. It is evidently an extension of (after the recently introduced KYC norms by the Ministry of Company Affairs) the objective to bring transparency in the company related matters and to flush out shell companies.

The MCA under the said rule, requires companies to fill out and e file E-form INC-22A for address validation. The abbreviated title of the form is ACTIVE i.e Active Company Tagging Identities and Verification to tag the identity of the company i.e. Registered office.

Before the introduction of ACTIVE, the government observed that in many cases companies fail to maintain a Registered office as per Section 12 of the Companies Act, 2013 and the location of such Registered Office is not traceable by the government officers when they need to visit for the physical verification of the Registered office of the Company.

Therefore, in order to streamline such cases, the Ministry has introduced this concept of tagging through INC-22A or ACTIVE.

The MCA has mandated the filing of Form INC-22A (Active) and it has to be filed on or before 25th April 2019. The e-form 22A has no filing fee up to the due date, i.e. April 25, however there is a penalty applicable to an extent of INR 10,000 if it is filed after 25th April 2019 or the company may be removed from the Registrar of companies.

For a broader understanding of the entire notification please visit the downloads section of our website http://www.korahandkorah.com/downloads.html