Analysis of Form ACTIVE--Unearthing Inactive Companies

Pragya Lalwani

Form ACTIVE (INC-22A) has been released by the Government to track the companies using incorrect addresses for correspondence, those being formed to defraud the investors and the shell companies formed only on papers so as to strengthen the corporate governance. Learned author in this write up, pens down all aspects of 'e-Form ACTIVE' in an analytical way.

1. Introduction

Overture of e-Form ACTIVE (Active Company Tagging Identities and Verification) is a welcome move of Ministry of Corporate Affairs that paved the way for strengthening the corporate governance in India. Rule 25A is inserted under Companies (Incorporation) Rules, 2014 in this respect vide Companies (Incorporation) Amendment Rules, 2019, dt. 21-2-2019 notified by MCA, effective from 25-2-2019. According to which every company registered/incorporated on or before 31st December, 2017 has to file e-Form ACTIVE on or before 25thApril, 2019 furnishing particulars of such company and its registered office. The main purpose of introducing it, is to unearth the shell companies having bogus addresses and require companies in large numbers to comply with the rules and regulations notified by Ministry for transparent corporate structure.

2. Companies not required to file e-Form ACTIVE