The Government of India has launched several steps against black money, undisclosed income, Benami transactions, etc. The government of India takes one more step in these directions and forms a task force with the Ministry of Corporate Affairs(MCA), to find those companies that are only open for tax evasion which is also referred to as shell companies. The Government involves the various departments in this like the Central board of direct taxes (CBDT), Enforcement Directorate (ED), the Securities Exchange Board of India (SEBI), etc. The main purpose of the Government is to find the shell companies that are registered in India.
The Government introduces a new e-Form INC 22A ACTIVE (Active Tagging and Identities and Verifications) which will record the address of the registered office along with a photo of the registered office with the latitude and longitude of the place where the registered office is situated. The e-form enables geo-tagging, i.e., attaching data of the exact location by taking the longitude and latitude of the registered office of the company, it will help government officials to detect that where too many companies are registered in the same location by tracing their longitude and latitude if they found that too many companies have the same location then an alert is sent to Government for further inquiry, a trend noticed in past investigations into shell companies.
Who has to follow this rule?
This rule applies to all the companies who are incorporated on or before 31 December 2017 including companies registered under section 8 shall file the particulars of the company and the address validation through Eform INC-22A. In case you do not comply within the time limit then you can follow the process by paying Rs.10,000 as a late fee.
However, this rule does not apply to some companies which are as follows:
- Companies under liquidation.
- Companies under amalgamation.
- Companies that are dissolved.
- Companies incorporated after 01 January 2018.
- Companies Struck off from the register.
Now you have to follow the steps to fill the Eform INC-22A within the specified period to avoid late fees. The forms are available on the Ministry of Corporate Affairs (MCA) website. If you want to know more about how to fill the Eform INC-22A you can refer to our blog in which we describe the whole process of filing and give you a deep insight into INC-22A.