A person who is a Director is one or more companies or just holding DINs need to look at the following new compliance which makes a director directly or indirectly responsible for the compliance associated with the director or the company.

As a director, one need to meet these in order to avoid fines & hassles such as DIN Deactivation, Company being marked as Inactive etc. amongst other legal action that can be taken against director

Following are the compliances:

1. DIR-3 KYC

Last year, directors who were holding DIN as on 31st March 2018, were required to file form DIR-3 KYC. Now, MCA has issued a clarification which says that DIR-3 KYC would be an annual compliance which means that DIN holders are required to file DIR-3 every year.

However, the DIR-3 KYC form presently available on the portal does not cater to the DINs, which were allotted post 31st March 2018. The available forms are only available for DINs which were allotted up to 31st March 2018.

The Ministry has clarified that the revised forms will be shortly deployed in the portal and DIN holders would be required to file it within 30 days of such deployment.

What needs to be done?

DIN holders need to file the KYC form once the form is updated. Also, the DIN holders, who were marked “Deactivated due to non-filing of DIR-3 KYC” would have to get their DINs activated before they could file any form.

2.ACTIVE e-form INC-22A

Earlier INC-22A was due to be filed by 25th April 2019. Now, the due date has been extended and this form can be filed up to 15th June 2019.

INC-22A is required to be filed by all the companies which were incorporated on or before 31st Dec 2017.

If a company does not file Form 22A or ACTIVE before 15th June 2019, the company would be marked as ACTIVE non-compliant. When a company is marked as ACTIVE non-compliant, it would not be able to effect any of the following changes:

  • Changes in authorized capital (Form SH-07)
  • Changes in paid-up capital (Form PAS-03)
  • Changes in Director (Form DIR-12) (cessation would be allowed).
  • Changes in Registered Office (Form INC-22)
  • Amalgamation or Merger (INC-28)

If a company files Form INC-22A or ACTIVE after 15th June 2019, a penalty of Rs. 10,000 would be charged. On payment of the penalty and filing of all overdue returns, the company would be marked again as ACTIVE compliant.

 What needs to be done?

Directors of the company, which were formed on or before 31st Dec 2017 are required to get the form 22A filed as early as possible.

3. MSME form

The companies getting supplies of goods or services from Micro, Small & Medium Enterprises (MSMEs) are required to report & file MSME form-1, if the payments for such procurements has exceeded beyond 45 days the date of acceptance of goods or services.

This form wasn’t available at the time the notification to file MSME form was issued. MCA clarified that the form has to be filed within 30 days of the deployment of form in the portal.

The form was made available in the portal on 01st May 2019. Hence, the due date to file the form would be 31st May 2019.

Not filing the form, attracts a fine of up to Rs 25,000 to the company. It also makes the directors of the company liable for an imprisonment of 6 months and a fine of minimum Rs 25,000 and up to Rs. 3,00,000.

What needs to be done?

Directors of the company need to ascertain the status of their creditors and report the balances due in the MSME form within the applicable due date.

 Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.

(The author is a CA in practice at Delhi and can be contacted at: E-mail: abhinandansethia90@gmail.com, Mobile: +91-9811741451)

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Company: Abhinandan Sethia & Associates
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I am a Practicing Chartered Accountant with over 5 years of professional service experience. My professional services experience include specialization in #GST compliance #Risk based Internal Audits #Risk Management, #business process reviews, #Fraud Investigations etc. among other services View Full Profile

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