Indian Government Compliance Requirement

We have a new compliance requirement by the Indian Government that we wanted to advise you of:
 
Nucleus will be assisting our clients in complying with this requirement and gathering the required information and documents for the submission of e-form ACTIVT within the due date.
 
Here are the details and implications of the notification.
 
On February 25, 2019, the Indian government announced new formalities to be complied with by all companies to which this notification applies.
 
The primary reason for this new compliance requirement is to ensure that all companies having a registered address are operating from its registered address.  This new requirement seeks to identify shell companies that do not actually operate in India.
 
The following are additional details of the notification and the actions required:
 
1.  Applicability:  This applies to every company incorporated on or before December 31, 2017.
 
2.  Requirement:  Companies must file the information and its registered office in e-form ACTIVE (Active Company Tagging Identities and Verification).
 
3.  Due Date:  April 25, 2019
 
4.  Consequences of not filing e-Form ACTIVE:
The company's status shall be marked as "ACTIVE-non-compliant" and subject to 'Registrar of Companies' (RoC) discretion; this may also result in the "defaulting company" being struck from the records of the RoC.  Such companies will not be able to submit filings with the Registrar of Companies (RoC) for Change in Authorized Capital, Change in Paid-up Capital, Changes in Director except cessation, Change in Registered Office, Amalgamation/de-merger.
Any company filing e-form ACTIVE after its due date (after April 25, 2019), will be required to pay a fee of INR 10,000 (~ USD 141).  Once the fee has been paid and after successful filing of e-form ACTIVE, the company shall be marked as "ACTIVE Compliant". 
 
5.  Further Conditions
Any company that has not filed its annual financial statements and annual returns shall be restricted from filing e-form-ACTIVE, unless such company is under management dispute and the Registrar has recorded this on the register;
A company where any of its directors have not filed DIR-3 KYC form or is disqualified under section 164 of the Companies Act, 2013;
Any company that has been struck off or is under process of striking off or under liquidation or amalgamated or dissolved is not required to file e-form ACTIVE.
 
6.  Information and documents to be submitted in e-form ACTIVE:
At least two photographs are required:
  • One photograph showing the external building of the registered office of the Company showing the physical address (which shall include the registered address and other particulars);
  • One photograph of the office interior, also showing at least one Director who will be affixing his/her Digital Signature to e-form ACTIVE.
In Addition:
  • An email address of the Company is required (which will be verified by an (One-time-password) OTP.
  • The latitude and longitude of the Registered Office of the Company.
  • Details of the Statutory auditor, including the period of their appointment.
  • Details of the annual financial statements and annual returns filed for the year ended March 31, 2018.
  • List of Directors, Managing Director, key managerial personnel (to the extent applicable).
We are ready to assist you with any questions in this matter.  Please call us at: 408-747-9121 or email us at: info@nucleus-co.com for assistance.
 
 
 
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