Know about Active Company Tagging Identities and Verification (ACTIVE) rule under Company act’2013
Every company incorporated on or before the 31st December,2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.O4.2O19.
Background behind of e-Form ACTIVE insertion
Companies have to geo-tag their registered offices in the statutory filings with the Registrar of Companies (RoC), as the government seeks to prevent fraud by tightening regulatory systems. Geo-tagging, or attaching data of the exact location of the office, will allow the online return filing system to alert government officials wherever it detects far too many companies are registered in the same premises, a trend noticed in past investigations into shell companies.
“This will help us identify instances of one building being used by hundreds of shell companies as their registered office or of companies citing vacant plots as their registered office address. It will serve as an early warning system for detecting mushrooming of shell companies.
With this move, the ministry seeks to prevent abuse of the corporate structure by companies that inflate costs by issuing fake invoices and laundering unaccounted wealth in the form of loans or equity through bogus transactions.
Many companies that exist only on paper with the same address were found in the past offering what is referred to as “accommodation entries” or bogus transactions without commercial substance. A special investigation team led by Justice M.B. Shah, a former judge of the Supreme Court, in 2015 highlighted the role played by such entities in money laundering.
The coordinates of the registered premises will act as a key input for mining data in the ministry’s IT infrastructure, called MCA21, to zero in on companies with a common address, common contact numbers, common directors and sudden and unexpected changes in revenue, etc. that may warrant a closer look into their affairs. The idea is to seek the coordinates of the registered office at the time of incorporation in the case of new companies and at the time of filing annual returns in the case of existing ones.
“Over a period of time, the disclosure and transparency requirements for companies have increased. Geo-tagging will certainly help in identifying clusters of companies with the same address.
New Insertion of Rule 25 A
Under Rule of 25A, Every company incorporated on or before the 31st December,2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.O4.2O19.
Restrictions for filing ACTIVE
any company which has not filed its due financial statements under section 137 or due annual returns under section 92 or both with the Register shall be restricted from filing e-Form-ACTIVE, unless such company is under management dispute and the Registrar has recorded the same on the register.
Company shall ensure that all directors DIN in Approved Status before filing this form and are Neither De-Activated due to non-filing of Form-DIR-KYC or Not Disqualified u/s 164 (2).
Exemption from filing ACTIVE
companies which have been struck off or are under process of striking off or under liquidation or amalgamated or dissolved, as recorded in the register, shall not be required to file e Form ACTIVE:
Consequence of Non-Filings of ACTIVE
In case a company does not intimate the said particulal’s, the Company shall be marked as “ACTlVE-non-compliant” on or after 26th April, 2019 and shall be liable for action under sub-section (9) of section 12 of the Act.
No request for recording the following event based information or changes shall be accepted by the Registrar from such companies marked as “ACTIVE non compliant”. unless ” e-Form ACTIVE” is filed :
(i) SH-07 (Change in Authorized Capital)
(ii) PAS-03 (Change in Paid-up Capital)
(iii)DIR- 12 (Changes in Director except cessation)
(v) INC-28 (Amalgamation, de-merger)
(iv) INC-22 (Change in Registered Office)
Penalty for Non- Filing
Where a company files “e-Form ACTIVE”, on or after 25th April’ 2O19, the company shall be marked as “ACTIVE Compliant”, on payment of fee of Rs.10,000/-“.
Details Required in filing e-Form ACTIVE : FORM NO.INC 22A
Basic Information of Company
- CIN No. of the company.
- Name of the company.
- Address of Registered in Latitude and Longtitude Form– Photo of Registered office along showing therein atleast one Director /KMP who has affixed his/her Digital Signature to this form is mandatory.
- Email id of the company and OTP of email id.
- About the Company is Listed or not.
Directors Details of Company
- Numbers of Directors in Company.
- Maximum Number of Directors are beyond limits prescribed in Companies Act’2013. based of resolution date and SRN NO. of Form MGT-14.
- List of Directors as on date of filing of this form with DIN Status.
Auditors, Cost Auditors,Companies Secretary Details
CEO,CFO,Manager, Managing Director Details
Details of Annual Return Filed with FORM AOC-4/AOC-4 XBRL, and MGT-7 Filed for F.Y:2017-2018. only SRN No. Required.
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