Director of ACTIVE Non-Compliant Company Overview
Gunjan Singh / 2020-02-06 05:09:52
ACTIVE stands for Active Company Tagging Identities and Verification. The Company Rule (the Appointment and Qualification of the Directors ) was notified by the Corporate Affairs Ministry in 2014. According to the Rule, the Directors of any company who are not filling the ACTIVE e-Form will be called “Director of the ACTIVE non-compliant company”. To know more about this regulation, go through this article.
What is ACTIVE e-Form?
Each company established before 01.01.2018 were compulsorily asked to file the ACTIVE e-form. The date assigned to file the e-form was 15.06.2019. The Ministry of Corporate Affairs did not extend the deadline for filing the e-Form. In case of failure, the companies will have to pay a penalty of Rs.10,000. Furthermore, those companies will be considered as ACTIVE Non-Compliant. Follow the annual compliance by filling the form on time, to avoid the legal penalties.
Demerits of Non-filing the e-Form
• Companies will be considered as ACTIVE non-compliance
• Penalty of Rs.10,000 needs to be paid
• Registrar will conclude the companies are not continuing with the business operations and neither following the annual compliances.
• The registrar can remove the Company’s name from the Companies register.
• Every Officer, as well as the company, will have to pay the penalty which can go to Rs.1 lakh.
The latest Notification of the MCA Rules says that there will be no tagging of non-compliant Companies or Directors, not filing the e-Form ACTIVE. Earlier, the form (ACTIVE) was brought for filing purposes. However, the form is now easily available. You can file it by paying Rs.10,000. So, the stakeholders are recommended to download the latest version of the e-Form for filing cause.
Directors of Active Non-Compliant Company
As mentioned before, the directors not filing the e-form will be called the Director of ACTIVE Non-Compliant Company. Once they are marked, they cannot change it until the MCA Annual Returns. The Directors will have to wait for the next MCA Annual returns to change themselves as the Director of ACTIVE Compliant Company.
Thus, the directors need to maintain the annual compliance of their belongings companies. Else, they will be liable to pay the legal penalties.