GJM & Co.

Companies, Prove You are Real! Continuing with its crackdown on "fly by night and dummy" entities through stringent KYC regulations, the government has made it mandatory for over 12 Lakh active registered companies in India to upload all their particulars including details of registered offices in an e-filing to the government. The Ministry of Corporate Affairs has notified the Companies (Incorporation) Amendment Rules, 2019, under which all companies registered before December 31, 2017 , are required to file e-Form ACTIVE (Active Company Tagging Identities and Verification)-INC22A on or before April 25, 2019.   Failure to file e-Form ACTIVE will lead to a penalty of Rs 10,000 with companies in default being declared ACTIVE non-compliant . Once a company is marked as ACTIVE non-compliant, it would not be able to make changes to its capital structure or go ahead with merger or amalgamation deals. Such non-compliant companies would also not be able to rotate th...

Mandatory Reporting of delayed payments to Micro & Small Enterprises Creditors On 2 November 2018, the Union government issued a notification under the Micro, Small and Medium Enterprises (MSMEs) Development Act, 2006 ostensibly to ensure timely and smooth flow of credit to MSMEs and minimise sickness among them. The Act strengthens the provisions relating to delayed payments to the MSMEs by specifying the maximum credit period and higher penal interest if delayed beyond that period. If there is a delay in payment, companies will have to mention the reason for such delay in the statement of accounts. The question is whether such notifications will actually foster the growth of the MSME sector. Subsequent to the Notification given by the Ministry of MSME on 02nd November 2018, now the Ministry of Corporate Affairs have issued a gazette notification dated 22 nd January 2019 mandating all the “Specified Companies” shall file details of all outstanding dues to Micro...

Interim Union Budget 2019 – Synopsis As expected the NDA Government delivered a populist budget in the run up to the 2019 General Elections in May later this year.  There were big announcements made yesterday in the budget speech to woo the majority of the Indian voters being farmers and the middle class. An income support scheme for small farmers, pension scheme for labourers in unorganised sector and increase in tax reliefs to the lower middle class were the highlights of this budget to assure it attracts the rural & middle class India sufficiently ahead of the polls.  While we would like to call this budget more inclined towards the social sector priorities & infrastructure, the budget failed to meet the expectations of the Start Ups, as more and more job seekers turn into job creators and India becoming one of the largest hubs for start ups globally.  Start ups expected much needed support by addressing Angel tax removal and more policies for boosting...