MCA allows vague, not related to object/ Activity/ person, misleading impression giving name application

As  per  Companies  incorporation  Rules,  2014  following  names  which  were  earlier  not  allowed  to  be applied  or  considered  undesired    for  incorporation  of  Companies  under  Companies Act,  2013  are  now allowed  to  be  applied  vide  relaxation  given  vide  Notification  No.  G.S.R.    (E).-  dated  22.01.2016. 1)    it  is  not  in  consonance  with  the  principal  objects  of  the  company  as  set  out  in  the  memorandum  of association;  Provided  that  every  name  need  not  be  necessarily  indicative  of  the  objects  of  the company,  but  when  there  is  some  indication  of  objects  in  the  name,  then  it  shall  be  in  conformity  with the  objects  mentioned  in  the  memorandum; 2)  the  proposed  name  is  vague  or  an  abbreviated  name  such  as  ‘ABC  limited’ or  ‘23K  limited’ or  ‘DJMO’ Ltd:  abbreviated  name  based  on  the  name  of  the  promoters  will  not  be  allowed.  For  example:-  BMCD Limited  representing  first  alphabet  of  the  name  of  the  promoter  like  Bharat,  Mahesh,  Chandan  and David: 3)    it  is  intended  or  likely  to  produce  a  misleading  impression  regarding  the  scope  or  scale  of  its activities  which  would  be  beyond  the  resources  at  its  disposal: 4)    If  any  company  has  changed  its  activities  which  are  not  reflected  in  its  name,  it  shall  change  its name  in  line  with  its  activities  within  a  period  of  six  months  from  the  change  of  activities  after complying  with  all  the  provisions  as  applicable  to  change  of  name. 5)  In  case  the  key  word  used  in  the  name  proposed  is  the  name  of  a  person  other  than  the  name(s)  of the  promoters  or  their  close  blood  relatives,  No  objection  from  such  other  person(s)  shall  be  attached with  the  application  for  name.  In  case  the  name  includes  the  name  of  relatives,  the  proof  of  relation shall  be  attached  and  it  shall  be  mandatory  to  furnish  the  significance  and  proof  thereof  for  use  of coined  words  made  out  of  the  name  of  the  promoters  or  their  relatives.

Ministry of Corporate Affairs sets up Central Registration Centre (CRC) on Republic Day

Press Information Bureau 
Government of India
Ministry of Corporate Affairs
25-January-2016 11:54 IST

Ministry of Corporate Affairs sets up Central Registration Centre (CRC) on Republic Day 

The Ministry of Corporate Affairs has taken the initiative in Government Process Re-engineering (GPR) and launched the Central Registration Centre (CRC), on the occasion of Republic Day 2016, with the specific objective of providing speedy incorporation related services within stipulated time frames which are in line with international best practices.

The GPR involves a three pronged approach of further automating some of the approval processes by utilizing advanced software tools & engines, rationalising and modifying some of the rules and engaging professionals to expedite the process of manual scrutiny.

In the first phase, the CRC will process applications for name availability (INC-1 e-forms) submitted on line across the country and endeavour to process these by the end of next working day. Operations of the CRC will formally commence w.e.f.  27 January 2016 and more services will be rolled out progressively.

 

The GPR exercise is in pursuance of the ministry’s objective of providing greater “Ease of Doing Business” to corporates and is expected to result in speedier processing of incorporation related applications, uniformity in application of rules, eradicating discretion. It will also be supplemented by intensive monitoring aimed at providing timely approvals.  

 

 

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Grace period of 5 days to deposit PF removed

The EPFO has issued EPF Circular No. WSU/9(1)2013/Settlement/35031 dt. 8 Jan., 2016, removing the grace period of 5 days for depositing PF and hence Feb., 2016 onwards the due date shall be 15th instead of 20th. This will have impact on Tax audit report

The Companies (Meeting of Board and its Powers) Second Amendment Rules, 2015

The  Companies (Meeting of Board and its Powers) Second Amendment Rules, 2015

Central Government  vide Notification dated 14.12.2015,  has inserted a new rule  after Rule 6 of The Companies (Meeting of Board and its powers) Rules,2014 as:-

"Rule 6A :- omnibus approval for related party transactions on annual basis "

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MCA notifies 14th December, 2015 as the date on which Sec 143(12) & 177(4)(iv) for fraud reporting by Auditors shall come into effect

MCA vide Notification No S.O. 3388(E), has appointed the 14th day of December, 2015 as the date on which the provisions of Section 13 and 14 of the Companies (Amendment) Act, 2015  shall come into force. The said Sections are as under:

13. In section 143 of the principal Act, for sub-section (12), the following sub-section
shall be substituted, namely:—

“(12) Notwithstanding anything contained in this section, if an auditor of a
company in the course of the performance of his duties as auditor, has reason to
believe that an offence of fraud involving such amount or amounts as may be
prescribed, is being or has been committed in the company by its officers or employees,
the auditor shall report the matter to the Central Government within such time and in
such manner as may be prescribed:

Provided that in case of a fraud involving lesser than the specified amount, the
auditor shall report the matter to the audit committee constituted under section 177 or
to the Board in other cases within such time and in such manner as may be
prescribed:

Provided further that the companies, whose auditors have reported frauds
under this sub-section to the audit committee or the Board but not reported to the
Central Government, shall disclose the details about such frauds in the Board's report
in such manner as may be prescribed.”.

14. In section 177 of the principal Act, in sub-section (4), in clause (iv), the following
proviso shall be inserted, namely:—

"Provided that the Audit Committee may make omnibus approval for related
party transactions proposed to be entered into by the company subject to such
conditions as may be prescribed;".

MCA clarifies that 30 Dec 2015, the extended last day for annual filing forms will not be extended further

MCA has issued the following Notice on its website.

The last date for annual filing forms is 30 Dec 2015 and no further extension would be accorded after this date. All stakeholders are requested to complete their filing accordingly, without waiting for the last date to avoid last minute rush.

No proposal to relax e-filing norms under Companies Act : Government

There is no proposal before the government to relax rules pertaining to electronic filing of documents under the Companies Act, Parliament was informed today.
Currently, the Corporate Affairs Ministry provides end-to-end e-governance services on its MCA 21 portal, which occasionally faces software and hardware issues.

To address this, the ministry has taken several steps, including a dedicated e-governance division which intensively monitors not just performance of MCA 21, but work status at various registrar offices, timely resolution of stakeholder complaints and positive consideration of any suggestions.

"There is no proposal before the ministry for relaxing the rules pertaining to electronic filing of documents," Corporate Affairs Minister Arun Jaitley said in a written reply to the Rajya Sabha.

He was replying to a query whether the ministry is intending to relax the existing set of stringent regulations in this regard.