All about e-form ACTIVE – Company KYC

1. Introduction

Introduced by the Ministry of Corporate Affairs (MCA) by “Active Company Tagging Identities and Verification” (ACTIVE) Rules on 21^st February 2019. Rules came into effect from 25^th February, 2019. The hidden agenda as it appears is to identify shell Companies. This compliance is considered as Company KYC.

2. Applicability

Every Company, incorporated on or before 31^st December 2017, is required to file the particulars of the Company and its Registered Office in e-from ACTIVE i.e INC 22A on or before 15^th June, 2019 (extended date).                                   

3. Pre-requisites for filing of e-form INC 22 A – ACTIVE

• The Company must have filed its Financial Statements and Annual Return in form AOC 4 and MGT 7 upto the Financial Year ended 31^st March, 2018.
• DIR-3-KYC of all Directors of the Company have been filed. If filing of DIR-3-KYC of any of the Directors is pending, the Company cannot file form ACTIVE.
• If Company required to appoint a wholetime Company Secretary (if paid up capital is Rs. 5 crores or more), ACTIVE will not be filed if CS is not appointed.
• Form ADT 1 for auditor appointment for F Y 2014-15 has been filed.

4. Particulars to be furnished in the e-form ACTIVE

• Registered Office address
• A photograph of Registered Office showing external building and inside office showing at least one of the Directors of the Company. Photos to be clicked through GPS map camera.
• Latitude and Longitude of the Registered Office address to be appeared on photograph
• E-mail id of the Company, which will be verified by OTP.
• Total number of Directors and their details.
• Details of Company’s Statutory Auditor
• Details of Company’s Cost Auditor, if applicable
• Details of Company Secretary and Chief Financial Officer, if applicable

The e-form ACTIVE needs to be digitally signed by any two directors of the Company and certified by a practicing professional like Practicing Company Secretary (PCS).

5. Fees

 Till 15^th June, 2019, there will be no statutory fees for filing of this form.

6. Consequences of non-filing of e-form ACTIVE

 No further extension is provided for filing this form beyond 15^th June, 2019.

• Company’s status on MCA portal will be reflected as “ACTIVE non-compliant”.
• Directors of such ‘ACTIVE non-compliant’ companies shall be marked as ‘Director of ACTIVE non-compliant company’.
  • If e-form ACTIVE is not filed on or before 15^th June, 2018, late fees of Rs. 10,000 will be charged.
  • The Company will not be able to file following forms unless e-form ACTIVE is filed:
    1. Form SH 7 – for increase in authorised share capital
    2. Form PAS 3 – for allotment of shares / debentures
    3. Form DIR 12 – for changes in directors
    4. Form INC 22 – Changes in registered office address
    5. Form INC 28 – Any order issued by Regional Director / National Company Law Tribunal