Marked as Non-Compliant?

Here’s another chance for DIN Holders and Companies to roll back their Compliance Status with MCA

With the disruption in the economy flow due to lockdown, the Government asserted a need for relaxation in compliance norms for corporates.

Earlier, the Finance Ministry issued notification relaxing the company’s obligations and penalties in lieu of the COVID-19 outbreak. Now, the  Ministry has come up with some more relieving measures for companies including non-compliant entities and for defaulting personnel’s under the Companies Act, 2013 to help them regain their legitimate standing towards the Ministry and Companies Act,2013.

Compliance Relief for Defaulting Directors

Last year, MCA through proposing amendments in the Companies (Appointment and Qualification of Directors) Rules, 2014 dated 25^th July 2019, mandated all Directors holding Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) as on before 31^st March 2018 to file their KYC details with the Ministry.

As compliance of which the stated Directors were directed to file DIR-3 KYC e-form, to submit their personal details and notify their association with their respective companies. Directors not requiring any changes and confirming their KYC details with the ROC and Ministry were directed to file DIR-3 KYC Web e-Form. The due date for submission of these forms was 30^th September 2019.

The penalty announced for non-filling or delayed filling post 30^th September 2019 of the above forms was Rs 5,000/-.

With the issue of a recent notification and in pursuance of Circular 11/2020, MCA has now permitted all directors defaulting in the filling of DIR- 3 KYC / DIR-3 KYC Web to file it within the moratorium period of 1^st April 2020 to 30^th September 2020. No penalty of Rs 5,000/- shall be charged for fillings made during the moratorium period from directors.

Compliance Relief for Defaulting Companies

Similar to KYC Norms of Directors, MCA last year took steps to identify and eliminate shell companies which were being operated only in documents. MCA proposed for KYC verification of all such Companies through the filling of e-form INC-22A – Active Company Tagging Identities and Verification (ACTIVE).

Issued directions under Rule 25A of the Companies (Incorporation) Rules, 2014, filling of e-form INC-22A (ACTIVE) was mandatory for all companies incorporated before 31^st December 2017. The due date for filing of INC-22A (ACTIVE) was 25^th April 2019.

In pursuance of the Circular No. 11/2020 and Circular No. 12/2020 issued by MCA, all companies who defaulted in the filling of INC-22A (ACTIVE) are now permitted to file INC-22A (ACTIVE) without any late filing fee of Rs 10,000/-. Companies can now suffice filling of INC-22A within the moratorium period announced for companies from 1st April 2020 to 30th September 2020 to avail the discount of penalty.

How to Comply with DIR-3 KYC/DIR-3 KYC Web and Companies ACTIVE norms?

We at TaxReturnWala, are here to help you on all corporate fillings and ROC matters.

Our compliance experts will help you file your pending obligations with MCA including DIR-3 KYC/ DIR-3 KYC Web and INC-22A (ACTIVE) for companies.

Email us at info@taxreturnwala.com