INC-22A: A Comprehensive Guide to Filing and Compliance

Introduction:

When it comes to ensuring transparency and accountability in the corporate sector, the Government of India has implemented several measures. One such initiative is the filing of e-form INC-22A, also known as ACTIVE (Active Company Tagging Identities and Verification) form. In this blog, we will delve into the details of INC-22A, its significance, and the compliance requirements associated with it.

What is INC-22A?

Definition and Purpose INC-22A is an e-form introduced by the Ministry of Corporate Affairs (MCA) in India under the Companies (Incorporation) Amendment Rules, 2019. Its primary objective is to verify the active status of registered companies and promote greater transparency in the corporate ecosystem.

Applicability All companies registered with the Registrar of Companies (RoC) before 31st December 2017 are required to file the INC-22A form. This includes companies limited by shares, companies limited by guarantee, and unlimited companies.

Significance of INC-22A

Identifying Active Companies INC-22A serves as a mechanism for the MCA to identify companies that are actively engaged in business operations. By requiring companies to provide updated information, the government aims to ensure the authenticity of the registered entities and minimize instances of shell companies.

Promoting Corporate Governance The filing of INC-22A encourages companies to maintain accurate and up-to-date records with the RoC. It helps in strengthening corporate governance practices, enhancing investor confidence, and facilitating better regulation of the corporate sector.

Compliance Requirements for Filing INC-22A

Mandatory Information Companies filing INC-22A must provide details such as their registered office address, latitude and longitude coordinates of the registered office location, a photograph of the registered office showing external building signage, and a photograph of at least one director or key managerial personnel present at the registered office.

3.2 Timelines and Penalties The due date for filing INC-22A is typically within a specified period from the date of the notification by the MCA. Failure to comply with the filing requirements results in the company’s status being marked as “ACTIVE non-compliant” in the official records, which has severe repercussions, including restrictions on certain corporate actions.

Steps to File INC-22A

Preparation To file INC-22A, companies need to ensure that their registered office address is up-to-date and accurate. They must also gather the necessary supporting documents and information, such as the photographs and location coordinates.

Filing Process Companies can file INC-22A through the MCA21 portal, which is the official online platform for company-related filings. The form must be digitally signed by a director or a designated partner, along with the certification of a practicing professional, such as a Chartered Accountant or Company Secretary.

Consequences of Non-Compliance

Restricted Corporate Actions Companies marked as “ACTIVE non-compliant” are prohibited from making certain changes, including changes in authorized capital, directorship, registered office address, and more, until they file the overdue INC-22A form.

Additional Fees and Prosecution In addition to the restrictions, companies may be subject to additional fees for late filing. Continued non-compliance can also result in prosecution of the company and its directors, leading to potential fines and imprisonment.

The filing of INC-22A promotes accountability and transparency by ensuring that companies maintain accurate records and keep the authorities updated about their operational status. This is particularly important for investors, creditors, and other stakeholders who rely on accurate information to make informed decisions.

To comply with the requirements of INC-22A, companies must gather the necessary information and documents. It is vital to ensure that the registered office address is correct and up-to-date, as this information will be verified during the filing process. The latitude and longitude coordinates of the office location, along with photographs of the registered office and at least one director or key managerial personnel present at the office, must also be provided.

The filing process for INC-22A is done through the MCA21 portal, which is a user-friendly platform designed to facilitate various company-related filings. Companies are required to digitally sign the form, and it must be certified by a practicing professional, such as a Chartered Accountant or Company Secretary. It is advisable to carefully review the information provided and ensure its accuracy before submitting the form.

Non-compliance with the filing requirements of INC-22A can have serious consequences for companies. The status of “ACTIVE non-compliant” can hinder crucial corporate actions, such as changes in directorship, registered office address, or authorized capital. This restriction can significantly impact the company’s ability to operate smoothly and make necessary adjustments to its structure.

In addition to restricted corporate actions, companies may also face financial penalties for late filing. The longer the delay, the higher the additional fees imposed by the authorities. Moreover, continued non-compliance can lead to prosecution, with potential fines and imprisonment for both the company and its directors.

Conclusion

In conclusion, INC-22A plays a vital role in verifying the active status of registered companies and promoting transparency in the Indian corporate sector. Compliance with the filing requirements not only avoids penalties but also demonstrates a company’s commitment to good governance practices. By adhering to the timelines, providing accurate information, and staying proactive in their regulatory obligations, companies can ensure their continued legitimacy and credibility in the business environment.