AMENDMENTS IN COMPANY LAW COMPLIANCE BY MCA
September 18, 2019
The Ministry of Corporate Affairs has issued several notifications for better compliance, monitoring and ease of doing business. The gist of notification are noted below for ready reference below:-
Gist of the proposed amendments by MCA:-
Charge Satisfaction – Extra-time to Companies: Now, the Companies are brimming with relief as the MCA has extended the time period of filing the particulars of satisfaction of charge from 30 days to 300 days.
KYC of Directors – Additional Compliance: On the flip side of coin, there is an additional burden on the directors of company. They need to file their KYC with MCA in e-form – DIR-3-KYC during every financial year.
Non KYC – De Activation of DIN: The legislature has admonished the individuals who fail to file their particulars with registrar, the MCA will be de-activating their Director Identification Number and they would no longer be able to file any form with MCA unless and until they file their KYC with MCA
DIN Reactivation Penalty of Rs. 5,000: The deactivated DIN shall be activated if e-KYC has been filed by payment of a fee of Rs. 5000.
Due-Date of e-KYC: Every Director who has allotted DIN as on 31st March shall file an e-form DIR 3 KYC on or before 30th April of the next financial year. However, the last date for the FY 2017-18 is 31st August 2018.
Certificate from Auditor in Deposit rule: a certificate of the statutory auditor of the company shall be attached in Form DPT-1 (Circular or Circulars in the form of Advertisement inviting deposit), stating that the company has not committed default in the repayment of deposit or in the payment of interest on such deposits accepted either before or after commencement of the Companies Act, 2013.
Date Notifications: MCA has enforced certain provisions of the Companies Amendment Act, 2017 related to deposit on August 15, 2018 and satisfaction of charge on July 05, 2018.
New definition: New definitions for society, trust, register of firms and register of trusts have been introduced under the Companies (Authorized to Register) Rules, 2014.