ICSI request to Govt to delay KYC of companies

Posted on    01 October 2018

Shri Injeti Srinivas, IAS 
Secretary to Government of India
Ministry of Corporate Affairs 
Shastri Bhawan, 
Dr. Rajendra Prasad Road, 
New Delhi - 110 001 


Subject: Commencement of KYC process for companies - Reg. 

This has reference to the MCA announcement of commencing KYC process for companies from October, 2018 and our representation made in this regard on 23rd August, 2018 and further to a meeting of the President, ICSI with your good self. 

We wish to draw your kind attention towards certain practical difficulties perceived in this process: 

1. The process of KYC of companies may be commenced from 1st January, 2019 since the companies as well as professionals are currently involved in conducting Annual General Meetings of their respective companies and thereafter in the months of October and November, they would be involved in the annual filing compliances with the MCA. This would involve preparation and filing of a host of Forms like Form AOC-4, MGT-7, 23AC, 23ACA, 20B, which in itself is a time-consuming process.

2. It has been observed in' the past that in the months of October and November, the MCA 21 portal faces heavy filing pressure due to the filing of forms and returns.

3. The proposed company KYC compliances would be a totally new initiative and hence it requires lot of understanding followed by documentation, certification and thereafter filing on the MCA 21 portal. 

In this regard, we wish to make an advance request to you that the KYC for companies is an initiative to "know your customers", and the same should be done without asking the customers to pay any fees for the same. 

Further, since this is a new initiative, a minimum 3 months time may be considered to be given to the companies for complying. 

While on the matter, we request you that before initiating this compliance, a clarification may kindly be given as to whether there is any prohibition for having more than one registered office at one address so long as the local applicable laws are complied with. 

We shall be pleased to provide any further information or clarification on hearing from you. 

Thanking You 

Yours faithfully,

(CS Ashok Kumar Dixit)
Officiating Secretary

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