MCA TO INTRODUCE GEO-TAGGING OF THE REGISTERED
OFFICES OF THE COMPANIES TO IDENTIFY SHELL COMPANIES
After the
KYC drive for every Director, the Ministry of Corporate Affairs, is planning to
introduce Geo-tagging of registered office for every Company.
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WHAT
IS GEO-TAGGING?
Geotagging is a process of tagging an asset by mentioning its
specific geographical identification, including its latitude and longitude, on
the portal where it is registered.
The intent of such geotagging is to bring in
transparency in the system by providing an ocular portrayal of assets on top of
the map or satellite visual. In doing so,the assets are better monitored, and
leakages can be plugged.
Additionally, this
helps in creating an online database for the government, which may in turn help
the public obtain relevant information online.
Geo-tagging means providing data of the exact location of the
office.
The purpose seems to be detect the far too many companies
operating from single location.
WILL SERVE AS AN EARLY
WARNING SYSTEM FOR DETECTING MUSHROOMING OF SHELL COMPANIES.”
Minister of State for Corporate Affairs PP Chaudhary said,
“This will help us identify instances of one building being used by hundreds of
shell companies as their registered office or of companies citing vacant plots
as their registered office address. It will serve as an early warning system
for detecting mushrooming of shell companies.”
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