Are you thinking about doing Online Company Registration under the Companies Act, 2013? Well, you should be aware of provisions prescribed under Companies Act, 2013.
The Ministry of the Company Affairs (MCA) strongly believed that ordinance does not satisfy the requirement of the hour completely and has proposed further amendments to strengthen the corporate governance and enforcement framework. MCA often amend the companies’ law to improve the ease of doing business and makes sure better compliance levels. MCA try to make a easy mechanism for company registration.
Continue reading to know further about the amendments in the Companies Act, 2013!
Highlights of the changes further made to Companies Act 2013
Below mentioned are the key amendments, which passed under Companies Act, 2013.
The compliance requirement for business commence restored
Companies that have shared capital and incorporated after the ordinance came into effect will need to comply with following norms to commence any sort of business or exercise any type of powers.
- The declaration should be filed by the director of the company within 180days of incorporation and all subscribers of the memorandum should pay the share value as agreed by them
- The company will need to file verification of their registered office under section 21(2) of the companies act.
Under section 10A of the companies act, this provision inserted and meant to restore the business commences requirement under section 10 that has been omitted by the amendment passed in 2015.
Extra grounds introduced for company removal from the register
The ordinance to amend Companies Act 2013 prescribed before the company could able to commence business. It actually empowered the registrar of companies in order to undertake physical verification of the registered office of the firm to have a reasonable cause (source) to believe that the firm is not performing any business.
When these conditions are not fulfilled, the Companies Act has been amended to empower the registrar to remove the company name from the registrar of companies and then send notice to the company and its directors. This is what prescribed in section 248 of companies act 2013.
Directorship disqualification
When a person holds the company directorship beyond permissible limit according to section 165(1) of Companies Act, he is not eligible to be appointed as the director of the company. If any such change is commenced, then it related to disqualification for director appointment. This was actually done to improve the corporate governance.
Time period for registration of the charges
The companies act 2013 mandates that any type of charges created by the company should be registered with the registrar of companies in the mentioned format and within 30 days of any such charge. If the company fails to register the charge within the prescribed period, then it has additional 30 days to make the application to the registrar for the same with an additional charge. But, the ordinance has been amended the section 66 of the companies’ act that handles the duty of register charges.
Likewise, plenty of amendments to loans and investment by company, audit committee, the resignation of the director, financial statement, and others have been notified. Before Online Company Registration, you must have in-depth knowledge of these amendments to avoid hassle.
