The Ministry of Corporate Affairs (MCA) has vide Notification dated 21st February, 2019 has amended
the Companies (Incorporation) Rules, 2014 by insertion of a new Rule 25A for enabling Active Company
Tagging Identities and Verification (ACTIVE) for every company registered on or before 31st December,
2017. This is yet another measure by MCA to identify shell companies, defunct companies, inactive companies, in addition to the series of clean-up measures taken by it earlier (like strike off of companies which have defaulted in filing annual financial statements and annual return). Further, this measure is expected to identify companies using same address for their registered office without their being actually present in such address or companies without proper registered office, which is typical of a shell or defunct or inactive company. The compliance measures of the aforesaid Rule 25A is explained hereunder: