ACTIVE deadline extended, companies get time till June 15 to meet new disclosure standards
The government has extended the deadline for transferring photographs of business premises to June 15, giving corporates more time to agree to an arrangement aimed at spotting shell companies.
“It has been decided to extend the date to June 15,” confirmed a corporate issues service official.
The disclosure standards, which came into effect from February, make it mandatory for registered companies to transfer pictures of their business premises and somewhere around one director. The last date for compliance was Thursday, April 25. ET had reported on Wednesday that the MCA was hoping to extend the deadline.
The move came after the service received representations from industry relationship with numerous companies yet to consent.
New companies have, specifically, pointed out that a large number of them operate out of homes or shared premises or office suites.
The government had launched a crackdown on shell companies as a component of the counter dark money drive and these standards were follow-up measures to establish existence of registered entities. Names of thousands of shell companies were struck off as a major aspect of this drive.
The new standard requires companies to transfer a photo of the external facade of their registered office with a board showing the company name, corporate identity number, address of the entity, email and phone number. The entity likewise needs to transfer a photograph of the office interior appearing least one director who will likewise sign the form.
This new electronic form INC 22A, which is otherwise called e-Form (Active Company Tagging Identities and Verification), was notified as a component of the Companies (Incorporation) Amendment Rules, 2019 in February. On the off chance that the form is filed inside the due date, there is no fee, while late documenting will draw in a fine of Rs 10,000.
A resistant company would not be able to amend its capital structure or do any merger or amalgamation.