File DIN KYC and ACTIVE Form without Penalty From 1.04.2020 to 30.09.2020 under Companies Fresh Start Scheme, 2020:

In pursuance of the Launch of Company Fresh Start Scheme 2020 & LLP Settlement Scheme 2020, The Ministry of Corporate Affairs has via Updates and for the Proper Implementation of the above schemes has given a one time opportunity to all the Directors and companies for waiver of Penalty on Form DIR-3KYC & ACTIVE Form.

MCA has Allowed that

• All the “Deactivated DIN” marked Deactivated due to non-filing of DIR-3KYC/ DIR-3 KYC-Web
• The Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) eform

to encouraged to adhere again and become compliant by filing DIR-3KYC/DIR-3KYC-Web/ ACTIVE Form as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fees.

DIR-3KYC: DIR-3 eKYC is introduced by the Ministry of Corporate Affairs to conduct KYC (know your customer) verification for Directors of all companies. Such filing is mandatory for Directors and should be filed using a Digital Signature Certificate. Every director needs to to be provided with a unique personal mobile number and email address while filing the eForm. These will be verified by a one-time password (OTP).

ACTIVE Form/KYC of the Companies: The MCA introduced the ACTIVE form to validate the addresses of all registered companies under the Companies Act. ACTIVE (Active Company Tagging Identities and Verification) is the name of the form. The KYC form was introduced with the aim of ensuring that E-file companies keep their details accurate so that proper checks are maintained and also to ensure that the creation of shell companies is prevented in the years to come.

Important Points Related to this Update:

1. Source: The MCA Through an Update only has given The Relaxation of Waiver of Penalty from Form Dir3KYC/ACTIVE Form.
2. Objective – The Form DIR-3KYC & Form ACTIVE is mandatory and the very first step to be followed before filing any other documents with MCA by a defaulting Company. DIN Must be active to file any form in MCA 21 Registry. & certain Limitation have also been posed on companies if they will not file ACTIVE Form.
3. Validity of the Relaxation: the relaxation period is allowed for around 6 months wef from 1^st April, 2020 till 30^th September 2020.
4. Fees: The Statutory Fees of Both of the Forms is NIL. But There was Penalty of non filing of the form KYC-5000 per DIN & ACTIVE 10000 Per Company.
5. The Penalty of Rs 5000 from DIR-3KYC/DIR-3KYC-Web & The Penalty of Rs 10000 from ACTIVE Form is Waived during the Period.
6. Applicability of the Forms: The Form Dir3KYC is required to be Filed by the Directors only if their DIN is deactivated due to non filing of DIR-3KYC.
7. The Form ACTIVE is required to be Filed by the Company only if the Company is incorporated on or before 31st of December, 2017 and the Company has not Filed the above Form till date.
8. Requirements- The DIN KYC is a Annual Process to be followed each Year. The Responsibility of Filing DIN KYC is Personal Responsibility of Director. It is to be Filed as per DIN only and not as per the no of the companies in which the director is involved.
9. The Active form is a One time Form required to be complied but To File This Form there were huge requirements to be complied first like.All the DIN must be Active, The Annual Filing for the Year 2018 must be done, The Auditor must be appointed in the company. The KMP Must be appointed if applicable etc.etc.
10. Non Applicability: If the Din are Active & the Company has already filed Active form or The ACTIVE Form is not applicable on the company then no requirement to file.
11. Consequences of non-filing of Form: If DIN KYC is not filed every year and the DIN is Deactivated, No Filing can be done in the MCA 21 Registry.
12. Also If the ACTIVE form is not filed by the Company if it is applicable on the company then The Company might not be able to file certain changes in the company like: –

SH – 07 (Changes in Authorised Capital)

PAS – 03 (Changes in Paid-up Capital)

DIR – 12 (Changes in Director except for cessation)

INC – 22 (Change in Registered Office)

INC – 28 (Amalgamation, de-merger)

13. The directors who have been disqualified also shall remain same and nothing will change as they are not going to benefitted from the scheme.

Hope this is article will help you or your clients and clarified the conceptual and procedural Part.

DISCLAIMER: The entire contents have been developed on the basis of relevant information and are purely the views of the authors. Though the authors have made utmost efforts to provide authentic information however, the authors expressly disclaim all or any liability to any person who has read this document, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this document. Reader should seek appropriate counsel for their own situation. I shall not be held liable for any of the consequences directly or indirectly.

Any other suggestions /opinions are welcomed.

Regards

Author: CS Megha Sharan (Company Secretary in Practice)

Ezzus India Team