Ministry makes some changes in Company incorporation rules

Ministry makes some changes in Company incorporation rules

The government body of the nation has made some transformations in the law respective to the incorporation/absorption of companies below the Companies Act, 2013, under which a clue to this impact will also be engaged to the names/headlines of companies that do not observe with the flank of zonal directors. The changes will come into impact from the first of September. Now, in the newly changed rules, the tag of 'ORDNC' (Order of Regional Director not complied) will be joined to the company name that does not observe with an official or authoritative instruction within the specified period.

According to the given notification, for those companies, the ORDNC, the year of issue of the sides, the successive number of the company, and the existing/ previously Corporate Identification Number (CIN) shall become the new name of the company. In addition, the Registrar (R) of (O) Companies (C) shall include the new name in the register of companies and issue a new/ latest certificate of Company formation. According to the ministry, once the name of the company has been changed, then the necessary steps should be taken to observe with Section 12 of the Act which deals with the company registration in India. The Ministry of Corporate Affairs, which is implementing the Companies Rules, has amended the Companies (Constitution) Rules, 2014.

Changes have been made in the rules about the allotment of a new name of the previously registered company below Section 16 of the Act. Section 16 deals with the correction in the name of the company, subject to a number of conditions. It also includes that if there is the same name or similar to the name of the previously registered company that has company registration in India, the government may direct the name of the company concerned to be changed. If any such direction is issued, it will have to be implemented within three months by the concerned company.