Geo – Tagging of Companies (Registered on or before 31/12/2017) Mandatory before 25th April – MCA

The Central Government has been vested power under Section 12 (9) and Section 469 (1 and 2) to make rules for carrying out in the provisions by a notification for any matter whatsoever under the Companies Act 2013 ( hereinafter referred to as “ the Act”. The Ministry of Corporate Affairs regulates Corporate Affairs in India and is also a protector of interests of Investors, stakeholders. It issues notifications to regulate affairs of the Company as and when required.

About the New Geo – Tagging Notification

geo1

The Government of India (Ministry of Corporate Affairs) vide its Notification dated 21st February, 2019 (effective from 25th February, 2019) amended the Companies (Incorporation) Rules, 2014 inserting a new provision as 25(A) which talks about ACTIVE (Active Company Tagging Identities and Verification). Under this new rule, every company incorporated on or before 31st December, 2017 has to mandatory file particulars of the company and its registered office on or before 25th April, 2019 under the e-form ACTIVE (INC-22A).

The said amendment is for “Geo – Tagging” of the Registered Office of every company, which intends to alert government officials wherever it detects too many companies registered in the same premise, This would help in cracking down of “Shell Companies”.

Exceptions

There some exceptions to this rule also where they are not required to file, such as:

  1. Any company who has not filed any its due financial statements under Section 137 or due annual returns under Section 92 or both, the company can’t file the e-form until and unless the company is under management dispute and the Registrar has the records of the same.
  2. The companies which are already been struck off or under the process of striking off or they are under liquidation or amalgamation or they are dissolved as per the records of the Registrar.

Any company ( not falling under these above exceptions) which doesn’t intimate the said particulars by the 25th April 2019, will be marked as “ACTIVgeo2E non-compliant” and will be liable to be fined under section 12(9) of the Companies Act, 2013 and for filing after the sue date a fee of 10,000 rupees will be levied on the Company. The Company is also liable for a physical inspection of ROC, if required.

What is the Effect of Non-Compliance?

If a Company is “ACTIVE non-compliant” as per the records of the Registrar, then any  request for recordings of the following event-based information or changes will not be accepted by the ROC:

  1. SH-07(Change in Authorised Capital)
  2. PAS-03(Change in Paid-up Capital)
  3. DIR-12(Changes in Director except cessation)
  4. INC-22(Change in Registered Office)
  5. INC-28(Amalgamation, de-merger)

Contents to be Filled up in the E-Form­­

A New Form INC 22A has been introduced for this very purpose , contents in the e-form ACTIVE ( FORM NO. INC-22A) are:

  1. a. Corporate Identification Number
    b. Name of the Company
    c. Address of the Office with photo having a digital signature of atleast one
    d. Director(s)/KMP and the Latitude and Longitude also needs to be provided
    e. E-mail id of the company
  2. a. Number of Directors
    b. List of Directors as on date of filing having approved DINs
  3. Details of the statutory auditors and their numbers and their details such as PAN number of auditor or the firm, its name, registration number and period of appointment
  4. Whether the company requires a Cost Auditor, if yes then the details needs to be given
  5. Details of the Managing Director or Chief Executive Officer or Manager or Whole-time Director
  6. Details of the Company Secretary
  7. Details of the Chief Financial Officer
  8. Details of forms AOC-4/AOC-4 XBRL and MGT-7 filed for FY 2017-18

In the end of the Form you need to give the attachments, declaration, verification and certification.

End Note

The above notification from the Central Government has been enacted to stop the different types of criminal and economical offences such as tax evading, money laundering. There are many shell companies created by the miscreants to do fraud and cheat the Government, Shell companies are those companies which used to exist only papers and record files and there was no existence of them in real.

By this notification every registered company have to mandatory  give their Geo- tag location, so, the real existence of the companies can be confirmed. They will be no more only on records or on paper sheet but also their physical existence can be confirmed. This will also keep a check on far too many companies getting registered on the same premises. This will help Tax and Enforcement departments to trace the fraud companies and stop the criminal activities. Let’s be hopeful, that the Geo Tagging Feature  will bring a positive change in the business environment and will help in the growth of the Indian economy.

Author: Mr. Shubham Borkar, Senior Associate – Litigation and Business Development  and Rohan Dalbehera –Intern, at Khurana & Khurana, Advocates and IP Attorneys. In case of any queries please contact/write back to us at shubham@khuranaandkhurana.com or at www.linkedin.com/in/shubhamborkar.

Leave a Reply

Archives

  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • September 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010