MSME owners, have you geo tagged your registered office? New KYC norms come into effect today

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Published: March 1, 2019 5:37:37 PM

Starting Friday, registered companies will have to geo-tag their offices as part of the stringent Know Your Company (KYC) norms, as the government seeks to prevent fraud by tightening regulatory systems.

e-wallets, RBI, KYC, Paytm, MobiKwik, Flipkart, PhonePe, Amazon PayAs on December 31, 2017, 11.35 lakh companies were active in the country, according to the government data.

Starting Friday, registered companies will have to geo-tag their offices as part of the stringent Know Your Company (KYC) norms, as the government seeks to prevent fraud by tightening regulatory systems. The move introduced by the Ministry of Corporate Affairs (MCA) is aimed at tracking the shell companies and launch crackdown on them. Geo-tagging detects far too many companies registered in the same premises.

“25A. Active Company Tagging Identities and Verification (ACTIVE).-(1) Every company incorporated on or before the 3 I o December,2017 shall file the particulars of  the company and its registered office, in c-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.O4.2OL9,” Ministry of Corporate Affairs had said in a recent notification.

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A special investigation team led by Justice M.B. Shah, a former judge of the Supreme Court, in 2015 highlighted the role played by such entities in money laundering.

As on December 31, 2017, 11.35 lakh companies were active in the country, according to the government data.

The new e-form INC 22A-ACTIVE introduced through the amendment rules will record the address of the registered office along with a photo of the office with the latitude and longitude of the place where the office is situated.

“The Company  shall be marked  as “ACTlVE-non-compliant”  on or after 26th April, 2019  and shall be liable for action under sub-section (9) of section 12 of the Act,” the notification also said.

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