Companies (Incorporation) Third Amendment Rules, 2022
Companies (Incorporation) Third Amendment Rules, 2022
The Ministry of Corporate Affairs (MCA), on 18th August 2022, notified Companies (Incorporation) Third Amendment Rules, 2022, to further amend the Companies (Incorporation) Rules, 2014. Vide this amendment, MCA has announced a new Rule 25B, which is about Physical verification of the registered Office of the Company. The company’s Registered Office is the main Office of the Company to which all communication relating to the company will send by the governmental departments. New Rule will come into effect once notified in the Official Gazette.
Know more about Companies (Incorporation) Second Amendment Rules, 2022
Synopsis of Companies (Incorporation) Third Amendment Rules, 2022
The government has introduced Companies (Incorporation) Third Amendment Rules, 2022, to ensure a transparent process for the physical verification of companies’ registered addresses.
- MCA has inserted new rule 25B (Physical verification of the Registered Office of the company ) after rule 25A.
- As per the new rule, ROC will carry out a physical check of a company’s registered Office by way of the presence of independent witnesses.
- The Registrar will also have to photograph the company’s registered Office during the physical verification.
- Once the verification is done, a detailed report with various information, including location details and photographs, will be prepared.
- Registered Office, if not found capable of receiving and acknowledging all notices, ROC will issue notice to Company and all Directors.
Registered Office of a company
The Registered Office of a company is the main Office to which the governmental departments send all official communications about a Company. The Directors of a company or LLP must declare the company’s registered office during company incorporation/LLP incorporation and maintain certain documents at the registered Office.
- The state or location where the Registered Office of the Company is situated will determine the Registrar of Company (ROC) to which the applicant must apply for company registration.
- Any change of the Company’s Address of the Registered Office must notify the Registrar of Company (ROC) within a specified period.
Registered Office of company. – Section 12 of the Companies Act
According to Section 12 of the Companies Act, every company must maintain a registered office capable of receiving and acknowledging all Government notices that may be addressed.
According to Section 12 of the Companies Act, a Registrar of Companies (RoC) may physically check a company’s registered Office if they have reasonable grounds to believe that the company concerned is not carrying on a business. According to Companies (Incorporation) Third Amendment Rules, 2022, the process for such physical checks has been implemented under the Companies Act.
New Rule 25B – Physical Verification of Registered Office of the Company
As per the Companies (Incorporation) Third Amendment Rules, 2022, the Registrar, based upon the information made available on MCA 21 portal, shall visit the Address of the registered Office of the company and do the physical verification of the registered Office of the company.
- The physical verification will be done in the presence of two independent witnesses of the location of the company’s registered Office.
- If required, RoC will also seek assistance from the local police.
- As per the new rule 25B, the Registrar shall carry the documents filed on the MCA 21 portal in support of the Address of the company’s registered office for physical verification.
- To check the authenticity of documents, the same should be cross verified with the copies of supporting documents of such Address collected during the physical verification, duly authenticated from the occupant of the property where the Registered Office is situated.
- RoC will check the authenticity of the Office by cross verification with the copies of supporting documents collected during the physical proof, duly authenticated from the occupant of the property at which the Registered Office is situated.
- The Registrar will also have to photograph the company’s registered Office during the physical verification.
Once the verification is done, a detailed report with various information, including location details and photographs, will be prepared.
Report on Physical verification of Companies Registered Office
ROC will prepare the Physical Verification Report of the Registered Office of the company in the given format.
- Name and Company Identification Number (CIN) of the company
- Latest Address of the company as per the MCA 21 records
- Date of authorization letter issued by the Registrar of Companies
- Name of Registrar of Companies
- Date and Time of Physical verification
- Location Details of Company along with the landmark
- Details of person available at the time of Physical verification
Along with these details, ROC has attached the following documents with the report:
- Copy of agreement/ownership /rent agreement/No objection certificate(NOC) of the registered Office of the company from owner/tenant/lessor
- Photograph of the Registered Office
- Self Attested ID card of the person available
Notice to Company and Directors
Suppose the Registered Office is unable to receive and acknowledge all notices. In that case, the ROC will notify the Company and all Directors of his intention to remove the company’s name from the official Register of Companies (ROC) and request them to send their representation along with the relevant documents.
The Director of the company need to send them their representation along with the necessary documents within thirty days from the date of the MCA notice; otherwise, ROC will take further action under section 248 of the Companies Act.
The official notification of MCA about the Companies (Incorporation) Third Amendment Rules, 2022 is attached here for reference:
Companies (Incorporation) Third Amendment Rules, 2022