Due Date Extended to File INC-22A

If you are late to file the ACTIVE compliance, there is no need to worry anymore. The Last date extended to file INC-22A eForm ACTIVE. The deadline to file the compliance is now extended to 15th June 2019. This decision was taken after a comprehensive between the members of the MCA and the members of the ICSI. So, if you haven’t filed INC-22A yet, you can now.

If you were in a rush to file eForm INC-22A before, you can now rest and relax. The final date to file E-form INC-22A, also known as the active E-form that was 25th April 2019 before has gotten an extension of 1 month and 20 days. Yes, you heard is right, the Deadline has been extended to file eForm INC-22a to 15th June 2019.

What is eForm ACTIVE INC-22A and what it's purpose?

The ministry of corporation recently called for a latest compliance through a notification. Under this compliance, any company that has been registered before 31st December 2019 must file eForm INC-22A. It is also called eForm ACTIVE. Filed through the online portal, its purpose is to tag active companies. The ACTIVE in the eForm stands for Active Tagging Identities and Verification.

The purpose of introducing the eForm active is to understand and tag companies that are currently active. It is done to reveal the hidden shell companies that currently exist. While shell companies aren’t illegal, they are often used to pursue illegal business practices. Through mandatory eForm ACTIVE compliance, the government wants to tackle the rising incidences of financial malpractices by identifying shell companies.

 Why the deadline of filing INC-22A was extended?

The reason for the extended deadline for filing INC-22A is that not many companies that were aware of it. Regardless of how much media-friendly start-ups scenario have gotten, many entrepreneurs are still ignorant of the legal obligations that come with starting a company. However, the government decided that this ignorant shouldn’t be punished. Therefore, they extended the deadline to file eForm ACTIVE. Another reason is the directors were having trouble understanding the need for this compliance and they were confused about who is eligible to file INC-22A.

Therefore, before the last date of filing the aforementioned compliance, the members of the Institute of Company Secretaries of India (ICSI) made a representation in the MCA (Ministry of Corporate Affairs). The purpose of this representation was for the ICSI to explain the difficulty certain stakeholders, directors are facing while filing INC-22A. The explanation that they gave was the following:

1. Details about the auditor’s were not being pre-filed in many cases
2. There is confusion about the compliance by dormant companies.
3. There are management disputes within the companies.
4. Confusion among the companies based upon different financial year.

Despite the explanation given, the issues with the eForm ACTIVE compliance were still not resolved. Therefore, there was a chance that the final date to file the compliance would be extended.

Then, there was a Northern India regional council meet organized on 25th April 2019 on the request of ICSI. It consisted of the following matters:

1. There was a hope that the final date shall be extended after the ICSI meeting with the MCA
2. For companies that have filed FORM GNL-2 from 1st April 2014 to 20th April 2014, there was a fair bit of relief.
3. If a company that has been dormant has filed form STK-2 to close the company, and the status is still ACTIVE in the MCA registry, it has to file eForm ACTIVE INC-22A.
4. No updates can be done through the ACTIVE form. However, they can be done through an email ID.
5. A separate email ID of the company should be created.
6. there should be two photos of the registered office presented for the compliance:
   1. One from inside the office
   2. One from the outside
7. INC-22A is one-time compliance meant for companies registered before 31st December 2017.

Applicability of filing INC-22A

Following are the companies eligible or applicable to file INC-22A eForm ACTIVE:

1. Companies registered before 31st December 2017

Following are the companies that are exempted from eForm INC-22A filing:

1. Closed companies or Strike-Off Companies
2. Companies that are currently under the Strike-Off process
3. Companies that are currently under amalgamation
4. Companies that are going through liquidation

Requirements for Filing eForm ACTIVE INC-22A

Following are the documents required for filing eForm INC-22A:

1. The geographical location of the company: Longitude and latitude of the company’s location
2. 3 photographs of the registered office of the company:
   1. One from the outside
   2. One from the inside
   3. One from the inside with the director present.
3. Digital Signature Certificate of the Director

What happens if you don’t file INC-22A?

If you don’t file INC-22A before the now extended due date of 15th June 2019, your company shall be marked as “ACTIVE-Non Compliant” in the MCA Registry. As a result, you shall not be authorized to:

1. Apply to update the change in the authorized capital
2. Apply to update the change in the paid-up capital
3. Apply to update the change in the director of the company
4. Apply to update the change in the registered office
5. Apply for amalgamation or merger.

If INC-22A eForm ACTIVE is filed after the due date, the company has to pay the penalty of INR 10,000/-.