The Ministry of Corporate Affairs (MCA) is providing an opportunity to ‘ACTIVE non-compliant’ companies and deactivated DINs to become compliant without paying the required fees. This decision was taken to provide a bit of financial relief to the companies, considering the current COVID-19 crisis.
This facility will be available between April 1, 2020 and September 30, 2020, without paying a filing fee of Rs 10, 000. This has also been extended to deactivated DINs or Director Identification Number (DIN) holders who are marked as ‘deactivated’ due to non-filing of DIR-3 KYC or DIR-3-KYC-web forms.
An important aspect which is to be considered here is that companies that did not file e-form ACTIVE were categorised by MCA as ‘ACTIVE non-compliant companies’, where ‘e-form ACTIVE’ stands for Active Company Tagging Identities and Verification. In an effort to set the compliance record straight MCA had made directors responsible for filing of ‘e-form ACTIVE’.
Motive behind e-form ACTIVE
The MCA introduced e-form ACTIVE to bring out all the ‘shell companies’ which were being used as a means for illegal fund flows. Any company marked as ‘ACTIVE compliant’ means that the company has completed all the regulatory formalities.
The MCA has extended this regularisation opportunity to those Director Identification Number (DIN) holders who are marked as ‘deactivated’ due to non-filing of DIR-3 KYC or DIR-3-KYC-web forms. They can now file and get their status changed between the dates April 1, 2020 and September 30, 2020 without paying Rs 5000 as fee.
The corporate sector has welcomed the decisions taken by MCA as it has brought respite in the present COVID-19 lockdown. This one time opportunity of filing these forms, without the need to pay any fees would definitely benefit the small players.
You can check which directors come under Deactivated DINs or which companies have ‘ACTIVE non-compliant companies’ on The Company Check!
