Action initiated to control fraudulent companies
The Companies Act, 2013 does not describe the term “fraudulent business.” The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (ROC) in Manesar, however, registers new businesses in accordance with the statute.
MCA has taken several measures to improve the process of registering new businesses, such as introducing the SPICe type, which significantly reduces the processes, time, and expense associated with forming a business. Since February 23, 2020, the SPICe form has been replaced by the SPICe+ web form, which provides 10 services from three Central Government Ministries, the Maharashtra State Government, and six public and private sector banks, reducing the number of procedures needed to start a business in India. Since March 2006, MCA has been implementing a comprehensive end-to-end e-Government project dubbed “MCA21” for discharging its statutory functions in order to improve government accountability, pace, and performance.
GSTIN not Mandatory for MSME Udyam Registration, notifies Central Govt
GSTIN became one of the mandatory requirements for registration on the portal from April 1, 2021, as announced on November 26, 2020. Following this, some MSME organisations stated that the provision of a GSTIN is affecting the registration process because many businesses are excluded from the GST Acts which is a mandatory requirement of filing GST Returns.
They also pointed out that some MSME’s annual turnover could fall below the threshold for exemption from GST registration under the Act.
Now, GSTIN is not needed for MSME Udyam registration, according to the Ministry of Micro, Small, and Medium Enterprises (MSME).
Companies (Management and Administration) Amendment Rules, 2021 – MCA notifies new FORM NO. MGT-7 – Annual Return (other than OPCs and Small Companies and FORM NO. MGT-7A – Abridged Annual Return for OPCs and Small Companies for Financial Year 2020-21.
The Ministry of Corporate Affairs (MCA) recently released two notices on March 5, 2021. The first notification is to inform the effective date of an amendment to Section 92 of the Companies Act, 2013, which deals with the Annual Return of the Company, which was rendered by the Companies (Amendment) Act, 2017, but not yet notified and the second notification is about a consequential amendment to the Companies (Management and Administration) Rules, 2014, which states that from Financial Year 2020-21 onwards, One Person Companies (“OPCs”) and Small Companies must file the Abridged Annual Return in Form MGT-7A.
Companies (Management and Administration) Rules, 2014, sub-rule (1) of Rule 11 has been substituted for:
“Except for One Person Company (OPC) and Small Company, every company must file an annual return on Form No. MGT-7. From the financial year 2020-2021 onwards, One Person Companies and Small Businesses must file an annual return in Form No. MGT-7A.”