New Delhi: The authorities has amended the rules pertaining to incorporation of companies below the Companies Act, 2013 and the changes will come into impact from September 1.
The company affairs ministry, which is implementing the Companies Act, 2013, has amended the Companies (Incorporation) Rules, 2014.
In the rules, changes have been made with respect to the allotment of a brand new title to an present firm below Section 16 of the Act.
Section 16 relates to rectification of an organization title topic to varied circumstances, together with that the federal government could direct altering a agency’s title whether it is equivalent with or too almost resembles the title of an present firm. In case such a path is issued, the identical has to be carried out by the corporate involved inside three months.
Now, the ministry has put in place new rules whereby the tag of ‘ORDNC’ (Order of Regional Director Not Complied) could be hooked up to the title of the corporate that doesn’t adjust to the path throughout the specified interval.
For such companies, the letters “ORDNC (which is an abbreviation of the words ‘Order of Regional Director Not Complied’), the year of passing of the direction, the serial number and the existing Corporate Identity Number (CIN) of the company shall become the new name of the company without any further act or deed by the company,” as per a notification.
Further, the Registrar of Companies will accordingly make the entry of the brand new title within the register of companies and challenge a contemporary certificates of incorporation, it added.
According to the ministry, as soon as the corporate’s title has been modified, then obligatory steps ought to be taken to adjust to Section 12 of the Act that pertains to registration of a agency.
As per the brand new rules, ‘ORDNC’ ought to be “mentioned in brackets below the name of company, wherever its name is printed, affixed or engraved”.
In one other notification, the ministry mentioned provisions of Section 4 of the Act would come into power from September 1, 2021. Section 4 pertains to memorandum of companies.
The notifications have been issued on July 22. Also Read: Tesla seeks discount in import duties on electrical automobiles: Report
At the top of June, there have been 13.7 lakh registered companies that have been energetic within the nation. Out of them, greater than 17,200 new companies have been arrange throughout April to June this yr. Also Read: Zomato delivers spectacular itemizing positive aspects, however what’s subsequent? Should you maintain or promote? Check what consultants say
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