In a relief to companies that had been rendered inactive after they failed to comply with the know-your-customer rules, the government has given them an option to change their status and become active.

The Ministry of Corporate Affairs (MCA) has amended rules to allow such companies to make a filing about their directors and become compliant.

The MCA has amended what is called the Rule 25A related to the Active Company Tagging Identities and Verification (ACTIVE). A non-compliant company can now file Form DIR-12 to update details on its directors.

The change will allow a non-compliant company to file a form in case of appointment of new directors, or disqualification or deactivation of the director identification number of directors.

The ministry had tightened the KYC regulations after a crackdown on shell companies. It deregistered more than 1lakh companies from the Registrar of Companies last fiscal year.

The amendment follows representations from industry.

The ACTIVE form requires companies to upload a photograph of the external facade of their registered office with a board displaying the company name, corporate identity number, address of the entity, email and phone number.

The entity also had to upload a photo of the office interior showing at least one director who will also sign the form. Any company with the tag ACTIVE meant it had completed requisite regulatory formalities. All the companies incorporated before December 31, 2017, had to file the e-form ACTIVE by June 15, 2019, which was the extended deadline. #casansaar (Source - MCA, Economic Times)