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How Active INC 22A Impacts Your Company’s Legal Status & Compliance

Given the continuous change in the regulatory environment in India, it is vital that a company maintain compliance for its growth and legal soundness. One compliance requirement that all companies incorporated in India under the Companies Act, 2013 must be aware of is the form INC-22A, more commonly known as the Active Company Tagging Identities and Verification (ACTIVE) form or just as active. This is an important compliance requirement that can generally affect a company's legal standing and the ability to operate their business unimpeded. In this informative piece, we will review the significance of INC-22A, how you can affect your company's legal standing with it, the penalty for non-compliance to thus, how to successfully file INC-20 A service or INC-20A form online to allow you to remain in compliance with the Ministry of Corporate Affairs (MCA).

What is INC-22A (Active Company Tagging Identities and Verification)?

INC-22A is a Ministry of Corporate Affairs (MCA) form that asks companies to declare their operating status and make sure their registered office address is correct. The INC-22A form was introduced as part of the MCA's goal to find out which companies are really up and running and which companies could now be considered inactive or dormant and purged from the registry. All companies incorporated on or before December 31, 2017, must file the INC-22A form by a deadline, and by filing this form, the company is indicating that a company to the best of their knowledge that the company details, including the registered office address and operating status are accurate and verified by the company directors.

Why is Filing INC-22A Critical for Your Company?

1.Staying Compliant and Preventing Deactivation

One of the key reasons why companies need to file INC-20A service is to ensure the company's legal status remains active on the MCA portal. The MCA is clearing out companies and if a company does not file INC-22A within the specified deadlines, they will mark that company as “ACTIVE Non-Compliant” and move to deactivate the company. Deactivation means the company loses its “Active” status and can no longer carry on lawful business transactions. Deactivated companies also cannot file their annual returns, operate their bank accounts or enter into agreements, which could severely impact business continuity.

2. Compliance with Applicably MCA Regulations

Filing INC-22A is a compliance requirement. Not filing an INC-22A service subject the company to penalties outlined in the Companies Act. Not only will the company face financial penalties, it will also open the company up to being subjected to continuous scrutiny as a continuing non-compliance which could leave directors exposed to legal action which could lead to some form of prosecution.

3. Transparency and Trust

Filing the INC-22A form allows confirmation that the company is active and operational at the registered address to the government and all other stakeholders. This would demonstrate credibility to clients, investors, banks, and in relation to regulatory compliance.

What Information is Required in the INC-22A Form?

To effectively apply INC-20A form online, a company must include the following details:

• Registered office address with a utility bill (electricity/water/gas bill, etc.) of evidence.

• A picture of the registered office with the name and address of the company.

• A declaration from a director or manager stating the status of the company.

• Contact details - telephone number and email ID.

• Details of Authorized Signatory to apply for the form.

The form requires careful detail, as the MCA does check these documents during their review.

Impact of Active INC 22A on Your Company’s Legal Status

1.Confirms Active Status on MCA Portal

Upon submission and approval of the form, the company will appear as "Active" on the MCA portal. This means the company is valid to conduct business.

2. Allows Future Compliance & Filings

Being active allows the company to file its Annual Returns and Financial Statements without any interruption, and to file various MCA filings with full and clear processing, such as changes in Directors or changes in Share Capital or any other statutory filings.

3. Avoids Penalties and Legal Difficulty

Filing the INC-22A in timely and proper manner can avoid paying delays in filings fees and penalties against the MCA which can significant and can be detrimental to have on a company financially or reputationally.

4. Enhances Corporate Governance Practices

By verifying a company's existence and details, the government is permitting a higher level of corporate governance. This lowers the risk of fraudulent companies; in return, there are healthier businesses overall.

Relation Between INC-22A and INC-20A

Those are the post-incorporation compliance obligations INC-22A and INC-20A, respectively. Each document has its own timings and purpose:

Form	Purpose	Applicability
INC-20A	Declaration for Commencement of Business	For companies incorporated after Nov 2, 2018
INC-22A	ACTIVE Tagging and Compliance	For companies incorporated before Dec 31, 2017

If you are starting a new business, be sure to submit any associated submissions in a timely manner. You may have someone who provides a professional File INC-20A Service in India, or you can use a File INC-20A Form Online to help your company stay compliant.

Consequences of Not Filing INC-22A on Time

Not submitting the INC-20A service in India before the required timeline can bring serious repercussions such as:

• Company Deactivation; which means MCA will mark the company as noncompliant and move it to the "Deactivated" pile within their portal.

• You Cannot Operate Your Business; Deactivation means you cannot submit any necessary returns, open any bank accounts, or enter into any contracts.

• A Penalty of Upwards of Rs. 10,000; the MCA may impose penalties for non-compliance.

• Possible Prosecution of Directors; directors may take personal liability for non-filing and may incur criminal prosecution.

• Long Difficult Process to Reactivate; getting your company in Good Standing after the Deactivation due to the non-compliance is a time-consuming and costly process.

What Happens if You Fail to File INC-22A?

If a company does not file INC-22A within the deadline, then the MCA will:

• Identify the company as "inactive" or "non-compliant" on their portal.

• Charge the company a fine of ₹10,000.

• Commence the process of striking off a company under Section 248 of the Companies Act, 2013.

• Prevent the company from filing other forms and compliance until the default has been remedied.

It is very serious and can have harsh legal and financial impacts, as well as impact on the company's reputation with lenders, investors and partners.

Common Challenges in INC-22A Filing

• Incomplete or Incorrect Documents: Improper proof of registered office address or submissions of utility bills which may have expired can lead to rejection of my company form

• DSC Problems: Expired or invalid Digital Signature Certificates can cause delays in filing.

• Technical Errors: Once in a while, the MCA portal has technical issues and experience downtime.

• Understanding the Form: Without professional assistance and advising companies often make mistakes in filling the relevant forms.

These above challenges illustrate the very reason why companies should leverage a professional INC-20A Form Filling Service and be fully assured of timely compliance.

Key Takeaways: What an Active INC 22A Impacts Your Company

Impact Area	Explanation
Legal Recognition	Confirms your company is active and legally recognized.
Compliance Status	Demonstrates adherence to MCA regulations.
Avoids Penalty & Strike-off	Prevents legal penalties and company strike-off risks.
Corporate Governance	Maintains transparency and trust with stakeholders.
Updated MCA Records	Keeps your company details accurate in government records.

Conclusion

The Active INC 22A filing is highly beneficial so your company is not wasted, on compliance, legality and standing with Ministry of Corporate Affairs to have legal recognition. The consequences of ignoring this compliance are that you could incur fines or strike off your company at the MCA register thereby putting the future of your company at risk.
Companies who rely on a professional File INC-20A Service can make and avoid mistakes, can meet deadlines, can have a seamless compliance experience. File INC-22A Form Online is definitely not optional for all companies incorporated prior to 2018, it is mandatory you file and it is an integral part of preserving and upholding recognition of your company formally and legally. If you are unaware or uncertain regarding the INC-22A filing compliance, you should do the right thing to protect your company today. You have the opportunity to maintain and instill legitimacy in your company that lasts for decades to come.

(FAQs)

Q1. What is the deadline to file INC-22A?
A1. The MCA specified the deadline initially as June 25, 2019, but extended it multiple times. Companies should check the latest MCA notifications for updated deadlines and file promptly to avoid penalties.

Q2. Can I file INC-22A without a Digital Signature Certificate (DSC)?
A2. No. Filing INC-22A requires the form to be digitally signed by a director or authorized signatory using a valid DSC.

Q3. What documents are required for INC-22A filing?
A3. Proof of registered office (ownership or valid rent agreement), recent utility bill (not older than 2 months), and a photograph of the registered office location are required.

Q4. Is there any fee for filing INC-22A?
A4. Filing INC-22A itself is free if filed on time. However, a penalty of ₹10,000 applies for late filing.

Q5. What happens if my company is marked inactive due to non-filing?
A5. The company will lose its active status, may be barred from filing other MCA forms, and can face striking off from the register, leading to loss of legal status.