Ease of doing business – Some new additions in Company Incorporation rules
Ministry of corporate affairs (MCA) has announced the Companies (Incorporation) Third Amendment Rules,2016. The set of announcements made will replace or change the the Companies (Incorporation) Rules, 2014.
There are about 12 changes announced in the notification published at MCA website here. However, the simplifying impact is well associated with few clauses with reasonable clarity.
Mr. Sanjay Khan Nagra, iSPIRT volunteer explains the new announcements in below the embedded video.
Rule 13(2) of Companies (Incorporation) Rules, 2014 following explanation has been added
2014 notification: Following provisions existed
i) The memorandum and articles of association of the company shall be signed by each subscriber to the memorandum, who shall add his name, address, description and occupation, if any, in the presence of at least one witness.
ii) Where a subscriber to the memorandum is illiterate, he shall affix his thumb impression or mark which shall be described as such by the person, writing for him, who shall place the name of the subscriber against or below the mark and authenticate it by his own signature
2016 notification: Now the type written or printed particulars of all the subscriber and witnesses shall be allowed.
Rule 16(1)(m) – of Companies (Incorporation) Rules, 2014 following explanation has been added
2014 notification : Every subscriber to the memorandum was required to submit and file Proof of Identity with the jurisdictional Registrar of companies.
2016 notification: If the subscriber is holding a valid Director Identification Number (DIN), and the same have been updated as on the date of application and the declaration on this effect is given in the application, the proof of identity and residence need not be attached.
For other changes in the rules we suggest you refer to the Notification given at MCA website. Access this link here.
