{"id":55724,"date":"2023-04-25T16:02:48","date_gmt":"2023-04-25T10:32:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=55724"},"modified":"2023-04-25T16:02:50","modified_gmt":"2023-04-25T10:32:50","slug":"director-of-active-non-compliant-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/","title":{"rendered":"Director of ACTIVE Non-Compliant Company: An Overview"},"content":{"rendered":"\n<p>Form INC-22A ACTIVE was established by <strong>the\nMinistry of Corporate Affairs<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> (MCA) in the Companies (Incorporation) Amendment Rules, 2019 and the\nCompanies (Incorporation) (Fourth Amendment) Rules, 2019. Requiring companies\nto submit information on their registered office and company details. The\nstatus of any firm will be listed as &#8220;ACTIVE non-compliant&#8221; if it fails\nto submit the required paperwork by the deadline. In addition to the change as\nmentioned above, the MCA added a new Rule 12B to the Companies (Appointment and\nQualification of Directors) Rules, 2014. As a result, such &#8220;Active\nNon-Compliant&#8221; firms&#8217; Director Identification Numbers (DINs) will now be\nidentified as &#8220;Director of ACTIVE Non-Compliant Company.&#8221;<\/p>\n\n\n\n<p>The author has attempted to describe the process of filling out form INC-22A ACTIVE in this post, along with all the pertinent facts that could aid in your comprehension of the idea.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Status_of_the_Director_of_an_ACTIVE_Non-Compliant_Company\" >Status of the Director of an ACTIVE\nNon-Compliant Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Exempted_Companies_filling_E-form_ACTIVE\" >Exempted Companies filling E-form\nACTIVE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Recent_Notification\" >Recent Notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#What_Are_the_Effects_of_Complying_E_Form_Active\" >What Are the Effects of Complying E Form Active<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Restrictions_on_Filing_Active_E-Form_for_Non-Compliant_Company\" >Restrictions on Filing Active E-Form\nfor Non-Compliant Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#What_Will_Happen_If_The_Company_Does_Not_File_E-Form_INC-22A\" >What Will Happen If The Company\nDoes Not File E-Form INC-22A?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Application_for_Closure_of_ACTIVE_Non-compliant_Company\" >Application for Closure of ACTIVE\nNon-compliant Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/director-of-active-non-compliant-company\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Status_of_the_Director_of_an_ACTIVE_Non-Compliant_Company\"><\/span>Status of the Director of an ACTIVE\nNon-Compliant Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The author will discuss the situation of a director of an Active non-compliant company in this part. The Ministry of Corporate Affairs changed the Companies (Appointment and Qualification of Directors) Rules, 2014, and Rule 12B was added as a result. Due to this modification, all Active Non-Compliant&#8221; companies <strong><a href=\"https:\/\/corpbiz.io\/din-under-mca\">Director Identification Numbers<\/a><\/strong> (DINs) will also be identified as &#8220;Director of ACTIVE Non-Compliant Company.&#8221; Therefore, in accordance with the wording of the new legislation, directors of firms still need to fill out the form.<\/p>\n\n\n\n<p>The Directors of firms that have not filed\nan ACTIVE e-Form for any of the companies will thus be labelled as Directors of\nACTIVE Non-Compliant Company under the new laws. Only after paying all past-due\nMCA yearly returns will they be able to alter the marking to Director of an\nACTIVE complying firm. Therefore, all Directors must ensure compliance for all\nthe firms they are engaged in \u2013 or risk facing severe fines in the future.\nAccording to the discussion above, all firms registered on or before December\n31, 2017, must submit an Active E-form.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exempted_Companies_filling_E-form_ACTIVE\"><\/span>Exempted Companies filling E-form\nACTIVE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As the characteristics of an ACTIVE\nNon-Compliant Company and form INC-22A have previously been discussed, let&#8217;s\nlook at the businesses that are excluded from completing this form. The list of\nthese businesses is as follows:<\/p>\n\n\n\n<ol><li>Organisations that have been\ndissolved<\/li><li>Companies that are being struck\nout<\/li><li>A company that is under liquidation<\/li><li>Companies that merge or are\ndissolved<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Notification\"><\/span>Recent Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A recent notification alerting specific\ncompanies to comply with active status was released by the Ministry of\nCorporate Affairs (MCA).<\/p>\n\n\n\n<p>Every Company formed on or before December\n31, 2017, must submit e-Form ACTIVE (Active Company Tagging Identities and\nVerification) or INC 22A, in accordance with the revised Rules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Effects_of_Complying_E_Form_Active\"><\/span>What Are the Effects of Complying E Form Active<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies who successfully file the e-form\nINC 22A are now referred to as &#8220;Active Compliant&#8221; companies, while\nthose that were unable to do so are known as &#8220;Active Non-Compliant&#8221;\ncompanies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Restrictions_on_Filing_Active_E-Form_for_Non-Compliant_Company\"><\/span>Restrictions on Filing Active E-Form\nfor Non-Compliant Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any business that hasn&#8217;t submitted the\nnecessary paperwork will be limited in its ability to submit an Active E-form,\nunless the firm is involved in a management conflict and the registrar has\nnoted this on the register.<\/p>\n\n\n\n<ol><li>Financial statements required\nby <em>Section 137<\/em>;<\/li><li>an annual report required by <em>Section 92<\/em>;<\/li><li>Or both (i) and (ii).<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Will_Happen_If_The_Company_Does_Not_File_E-Form_INC-22A\"><\/span>What Will Happen If The Company\nDoes Not File E-Form INC-22A?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Company will have\n\u2018ACTIVE-non-compliant\u2019 stamped against it.<\/li><li>The late submission of INC-22A\nwill result in a fine of INR 10,000.00.<\/li><li>The following forms cannot be\nfiled by such a company, which will be designated as &#8220;ACTIVE\nnon-compliant&#8221;:<ul><li>Change in Authorised Capital,\nSH-07<\/li><li>Change in Paid-Up Capital,\nPAS-03<\/li><li>DIR-12 (Director Changes Other\nThan Termination)<\/li><li>Change of Registered Office\nForm INC-22<\/li><li>(Amalgamation, de-merger)\nINC-28<\/li><li>The firm must submit an e-form\nACTIVE together with the required cost in order to be designated as\n&#8220;ACTIVE Compliant.&#8221; <\/li><\/ul><\/li><li>The Registrar will conclude\nthat there is no basis to think the company is conducting any business or\nactivity.<\/li><li>In accordance with any\napplicable regulations, the Registrar may cause a physical verification of the\ncompany&#8217;s registered office.<\/li><li>The Registrar has the authority\nto remove a company&#8217;s name from the register of companies without taking any\nfurther action.<\/li><li>In addition, the firm and any\nofficial who is in default are subject to a fine that might totalINR One lakh<strong>.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_for_Closure_of_ACTIVE_Non-compliant_Company\"><\/span>Application for Closure of ACTIVE\nNon-compliant Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The status of the business is ACTIVE. If\nthe following conditions are met, a non-compliant corporation may apply in the\nrequired format for the company to be dissolved:<\/p>\n\n\n\n<ul><li>Businesses that failed to\nlaunch within a year after their incorporation.<\/li><li>Companies that have been\nincorporated but whose subscribers to the memorandum have not paid the\nsubscription money within a period of 180&nbsp;days.<\/li><li>Organisations that have not\nconducted any operations or business for the two fiscal years before.<\/li><li>Each director must have\nsubmitted their DIN KYC and updated their authorised status on the DIN.<\/li><li>According to <em>Section 164(2<\/em>) of the Companies Act,\nnone of the company&#8217;s directors should be disqualified. There has to be at\nleast one Director with an approved DIN.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every business that was formed on or before December 31, 2017, was obliged to submit an electronic form called e-Form ACTIVE (Active Company Tagging Identities and Verification) to confirm the address of its registered office. Any organisations whose INC-22A was not filed on or before the specified date have had their status changed to &#8220;ACTIVE Non-compliant.&#8221;\u00a0 Additionally, all directors of these &#8220;ACTIVE non-compliant&#8221; corporations have the designation &#8220;Director of ACTIVE non-compliant company&#8221; on their Director Identification Numbers (DIN).<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/e-form-inc-22a\/\">A Complete Overview Of E-Form INC 22A<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form INC-22A ACTIVE was established by the Ministry of Corporate Affairs[1] (MCA) in the Companies (Incorporation) Amendment Rules, 2019 and the Companies (Incorporation) (Fourth Amendment) Rules, 2019. Requiring companies to submit information on their registered office and company details. The status of any firm will be listed as &#8220;ACTIVE non-compliant&#8221; if it fails to submit [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":55725,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[262],"tags":[3509],"acf":{"service_id":"360"},"authorName":"Astitva Kumar","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-27.jpg","authorDescription":"Astitva Kumar is an advocate by profession and has completed her BBA. LLB from IP University. She is an avid reader, researcher, and legal writer. Her areas of interest include mediation, conflict resolution, finance, cyber laws, and taxation.","postViews":12698,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55724"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=55724"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55724\/revisions"}],"predecessor-version":[{"id":55727,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55724\/revisions\/55727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/55725"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=55724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=55724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=55724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}