New Rule 33A for Allotment of a New Name to an Existing Company

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New Rule 33A for Allotment of a New Name to an Existing Company

The Ministry of Corporate Affairs (MCA) has notified the Companies (Incorporation) Fifth Amendment Rules, 2021 whereby a new rule 33A relating to the allotment of a new name to an existing Company under section 16 of the Companies Act, 2013 has been inserted. The new rule will come into effect from September 1. In this article; we will look at the new rule 33A for the allotment of a new name to an existing company in detail.indiafilings.com/…earn/companies-act-2013

Know more about Naming Guidelines As Per Companies Act 2013

Gist of Notification

The Ministry of Corporate Affairs on 22nd July 2021 has published the Companies (Incorporation) Fifth Amendment Rules, 2021 to further amend the Companies (Incorporation) Rules, 2014 which shall come into force from 1st September 2021.

  • The Amendment notifies new rule 33A which deals with the allotment of a new name to the existing company under Section 16(3) of the Companies Act, 2013
  • As per the new rule, the Companies name would be changed to “ORDNC, serial number and existing CIN of the Company shall become a new name on non-compliance of the directions issued under section 16(3) of the Companies Act, 2013.
  • The Amendment also notifies new Form No.INC-11C – Certificate of Incorporation according to change of name due to Order of Regional Director not being complied

Note on Section 16 of the Companies Act, 2013

Let us understand Section 16 of the Companies Act, 2013 before discussing the new rule 33A.

Section 16 of the Companies Act, 2013 relates to rectification of a company name subject to various conditions, including that the government may direct changing a firm’s name if it is identical with or too nearly resembles the name of an existing company. In case such a direction is issued, the same has to be implemented by the company concerned within three months.

New rule 33A of Companies (Incorporation) Rules

The MCA has put in place new rules wherein the tag of ‘ORDNC’ (Order of Regional Director Not Complied) would be attached to the name of the company that does not comply with the direction within the specified period (3 months).

The Name of the Company – New Format

As per the notification, MCA announced that for such companies, the letters “ORDNC (which is an abbreviation of the words ‘Order of Regional Director Not Complied’), the year of the 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,”

Issue of Form No.INC-11C

The Registrar of Companies will accordingly make the entry of the new name in the register of companies and issue a fresh certificate of incorporation in Form No.INC-11C.  The new Form No.INC-11C is attached here for reference:

Companies5thAmndtRules01_23072021-4

Once the company’s name has been changed, then necessary steps should be taken to comply with Section 12 of the Act that pertains to the registration of a firm.

As per the new rules, ‘ORDNC’ should be “mentioned in brackets below the name of the company, wherever its name is printed, affixed or engraved”.

Note:  No such statement shall be required to be mentioned in case the company subsequently changes its name following the provisions of section 13 of the Companies act

Non- Applicability of Rule 33A

Rule 33A shall not be applicable in case the e-form INC-24 that is filed by the company has been pending for disposal by the regional director until and unless the e-form has been subsequently rejected.

The notification about the New Rule 33A for allotment of a New Name to an Existing Company is attached here for reference.

Companies5thAmndtRules01_23072021

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.