Monday, 22 April 2019

ACTIVE COMPLIANCE: Ease of Doing Business or Difficulty of Doing Business



COMPLIANCE and STRICT ENFORCEMENT are the key.. If back doors are open, then everyone will flee..
The Government of India in its process of promoting startups has digitized the whole process starting from Incorporation of Company to Winding Up and certain other compliances in between, but as the number of compliances are increasing day by day the corporate sector is confused w.r.t the concept of “EASE OF DOING BUSINESS”,

Here, we wish to clear this very concept of “EASE OF DOING BUSINESS”, ease of doing business does not really means ‘Less Compliances’, but it means ‘Easy Compliances’, if we take examples of various scams that are country is going through like “Vijay Mallya Scam”, “Modi Scam”, we can see that they occurred only because of negligence on part of banking system, lenient verification and checking’s before giving huge amount of loans, and now to ignore such issues in future would only give birth to more of these scams!!

With introduction of compliances such as ACTIVE and/or DIR-3KYC, the Ministry is just making sure that the Company or its Director(s) are real and thus making it more beneficial for the concerned public because dealing with fake corporate would only lead you to “SCAMS”,
Moreover if we go through the forms for ACTIVE filling and/or KYC; it’s evident that the filling process is much easier, attachments are less and time taken is also minimized, the forms being on STP mode gets approved in seconds and the best part being professional certification (to track down the professional in case of any fraud) on these forms, and ZERO Govt Fees!, so how is this compliance DIFFICULT?

Let’s just go through the questions people generally come across for ACTIVE Compliance:

1.    What is ACTIVE Compliance ?
It’s basically a Registered Office verification done to make sure that the company or its directors are not fake, because this requires the photo of company premises with one of its director (internal and external).

2.    Which company required to file ?
Every company that was incorporated on or before 31st December, 2017

3.    Last date to file?
25th April, 2019

4.    Effects of non filling.
You shall be debarred from filing any other form for your company, and   

5.    Practical Difficulties in filling form ACTIVE.
·         Clicking of photos with company board at Registered office, one director and latitude and longitude clearly visible
·         Updated filings of the company like form ADT-1, Annual Filings and others
·         Receiving OTP on the registered Email ID
·         DSC of both two (02) Directors

6.    How to resolve the photo issue?
·    Step 1 Download “Notecam lite" application from Google Playstore or App Store in your mobile phone or request the client to download the same
·         Step 2 Open the Application and allow GPS while it ask for
·     Step 3 On the Right side of Photo ,you will get the details of longitude and latitude.
·         Step 4 Click and Save the Photo
·        Step 5 Convert the photo to PDF and upload the same in the form Inc 22A. ( ACTIVE Form)
·    Step 6 Mention in respective columns the details of latitude and longitude asked in the form

In your android or Iphone, we have to the following .

·         Step 1 You can check longitude and latitude by clicking info of the photograph.

You can Just click photo by keeping location on.
Then keep that photo for record.

Another Alternative Method
Please install my location app in the mobile. Save it and attach to form this shows building n it  nearby area and also longitude and latitude.

Download GPS Camera from play store and while clicking the photo turn on the GPS and give access of the same to the App the photo will automatically show you the longitude and latitude

So we think that the concept of Ease of Doing Business is clear, also make sure to file the form as soon as possible only limited days left or otherwise bear heavy penalty of Rs. 10,000



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