Thursday, June 30

Tag: MCA mandate

Ministry of Corporate Affairs to conduct KYC for Indian Companies
Corporate, MCA, News, Regulatory, Watch-out

Ministry of Corporate Affairs to conduct KYC for Indian Companies

The Ministry of Corporate Affairs will soon launch an initiative Know Your Customer (KYC) for Companies, Chartered Accountants, Cost Accountants, and Company Secretaries in an attempt to weed out shell companies. Shell companies are companies with no real existence and their presence is merely on papers to carry out illegal activities as well as hold unaccounted money. Last year MCA mandated directors to comply with the DIR 3 KYC requirements to weed out fake or ghost directors. Out of 33 lakh, active directors in India only around 16 lakh directors have completed the KYC mandate within the stipulated date. The initiative was a major step in finding out directors who had been involved in illicit funds flow. Corporate affairs Secretary Injeti Srinivas said the KYC for Companies is an init...