Deactivated Directors asked to Become Compliant Once Again amid COVID-19!
We all are facing the biggest adversity, i.e. Novel Coronavirus disease aka COVID-19. The Indian government has imposed a curfew till April 14 across the nation so as to mitigate the risk of the coronavirus infection reaching the third stage. This lockdown has interrupted the normal course of businesses. Businessmen are not able to fulfill legal compliance. Hence, the government has introduced many relaxations to the corporate sector. This includes the extension of business compliance due-dates.
In this regard, The Ministry of Corporate Affairs (MCA) has now given another chance to the Deactivated Directors who hadn’t filed the Form DIR-3 KYC and Form ACTIVE. MCA has asked such directors to file the aforesaid these 2 forms and become compliant once again.
The Ministry of Corporate Affairs (MCA) had introduced an annual KYC form, i.e. DIR-3 KYC.
First of all, we must know the significance of these 2 forms:- DIR-3 KYC and ACTIVE.
1. What is the objective of Form DIR-3 KYC?
The objective behind the form DIR-3 KYC is to conduct annual ‘Know Your Customer’ or KYC of the Directors of all the companies. This form is mandatory to be filed on 30th April every year. Non-filing of this form results in the deactivation of the director. It also attracts a late fee of â‚¹5,000/-.
Know more about the Form DIR-3 KYC.
Now, the MCA has encouraged the DIN holders of DINs marked as ‘Deactivated’ due to the non-filing of DIN-KYC, to file this form, so that their DIN is activated once again. The late fee of â‚¹5,000/- shall be waived off.
2. What is the objective of Form ACTIVE?
The Form ACTIVE (INC-22A) is an e-Form that is to file by all those companies that were incorporated on or before the 31st December 2017. ACTIVE is an acronym for Active Company Tagging Identities and Verification. In the e-Form INC-22A, the companies shall file all the particulars of the company and its registered office address.
Know more about Form ACTIVE.
Companies that fail to file the FORM ACTIVE are marked as “ACTIVE non-compliant”. They can only activate their status by filing Form INC22A along with a late fee of â‚¹10,000/-.
3. What relaxation is there for the ACTIVE non-compliant companies?
Those companies that were declared ACTIVE non-compliant due to non-filing of FORM ACTIVE are now encouraged to file this e-form and become compliant once again. Besides, they can now file FORM ACTIVE without any late filing fee of â‚¹10,000/-.
Here is the MCA notification in this regard:-
4. Why is the relaxation been given to the non-compliant companies & Directors?
As we know that due to the threat of the COVID-19 outbreak, the lockdown has been imposed all over India. Due to this, business activity has come to a halt and businessmen are unable to fulfill their legal compliance. In a bid to provide them relaxation, the deactivated directors, as well as ACTIVE non-compliant companies, are now being encouraged to file the aforesaid forms DIN-KYC & INC-22A (ACTIVE), without any late filing fee.
This would help them carry on their business smoothly amid the economic disruption due to Coronavirus disease.
5. How to file the Form DIN-KYC & Form ACTIVE?
We can help you with the filing of the Form DIN-KYC & Form ACTIVE. Our dedicated professionals can help you throughout the procedure of filing the Form DIR-3 KYC & Form INC-22A (ACTIVE).
If you need any sort of assistance regarding the filing of the Form DIR-3 KYC, Form ACTIVE, Company incorporation, or the annual compliance of private company, please feel free to contact our business advisor at 8881-069-069.