MCA amends rules for physical verification of companies’ registered office addresses

The Ministry of Corporate Affairs an Indian government department has changed the laws to guarantee a transparent procedure for physically verifying the addresses of the registered offices of firms, including by having independent witnesses present at the time of the verification. The procedures outlined in the new guidelines will assist eliminate authorities’ discretion and establish a transparent system with regard to the physical verification procedure.

A Registrar of Companies (RoC) is authorised by the Companies Act of 2013 to physically inspect a company’s registered office if the RoC has a good faith belief that the business being investigated is not being conducted legally.

Now that the Act is in effect, a procedure for these physical verifications has been established.

Two impartial witnesses from the area where the company’s registered office is located will be present for the physical verification. According to the business affairs ministry, the assistance of the local police would also be sought if necessary.

MCA has notified these amendment via issuing Notification.

The Notification Stated, “In exercise of the powers conferred by sub-sections (1), (2) and (4) of section 248 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 , namely:-

These rules may be called the Companies (Removal of Names of Companies from the Register of Companies) Second Amendment Rules, 2022.”

2. In the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, –

(a) in Form No. STK-1, in paragraph (1), for the brackets and words “(tick whichever is applicable)”, the following shall be substituted, nan1ely:-

“the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.

(tick whichever is applicable)”;

(b) in Form STK-5, in paragraph 1, after sub-paragraph (iii) and before the long line, the following shall be inserted, namely:-

“(iv) the following con1panies are not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.

M/s. ______________ (indicate names of companies)

M/s. ______________

(c) in Form No. STK-SA, in paragraph 1, for the brackets and words “[Strike off whichever is not applicable]”, the following shall be substituted, namely:-

“(iv) are not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.

[Strike off whichever is not applicable]”.

For Official Notification Download PDF Given Below: