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Legal consequences of been declared active non compliant company

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vikas jolly

9 Points Posted on 10 March 2020

what are the consequences of been declared active non compliant company?

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Quick Summary

If your company is declared 'ACTIVE-non-compliant', you face significant legal repercussions. This includes a Rs. 10,000 penalty for late filing and restrictions on recording crucial company changes like capital updates or registered office moves. The Registrar may also initiate physical verification of your office and potentially strike your company name from the register, with penalties extending up to Rs. 1 lakh for the company and its officers.

CS Rashi Jain

Practicing Company Secretary @ RASHI JAI

1300 Points Posted on 19 March 2020

Effects of Non Filing e-Form ACTIVE
The Company shall be marked as “ACTIVE-non-compliant.
A penalty of Rs.10,000.00 shall be levied for late filing of INC-22A.
No request for recording the following event based information or changes shall be accepted by the Registrar:
SH-07 (Change in Authorized Capital);
PAS-03 (Change in Paid-up Capital);
DIR-12 (Changes in Director except cessation);
INC-22 (Change in Registered Office);
INC-28 (Amalgamation, de-merger)
The Registrar will conclude has reasonable cause to believe that the company is not carrying on any business or operations
The Registrar can he may cause a physical verification of the registered office of the company in such manner as may be prescribed
The Registrar may without initiate action for the removal of the name of the company from the register of companies
Also, the company and every officer who is in default shall be liable to a penalty which may extent to one lakh rupees.