{"id":38902,"date":"2022-09-16T16:50:48","date_gmt":"2022-09-16T11:20:48","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=38902"},"modified":"2024-05-31T14:32:13","modified_gmt":"2024-05-31T09:02:13","slug":"companies-incorporation-rules-2014","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/companies-incorporation-rules-2014\/","title":{"rendered":"Compliance with Rule 25B of Companies (Incorporation) Rules, 2014"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-38906 size-full\" title=\"Companies (Incorporation) Rules 2014\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014.png\" alt=\"Companies (Incorporation) Rules, 2014\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/09\/Compliance-with-Rule-25B-of-Companies-Incorporation-Rules-2014-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>The Companies (Incorporation) Third Amendment Rules, 2022, an update to the Companies (Incorporation) Rules, 2014, was put to notice by the Ministry of Corporate Affairs (MCA) on August 18, 2022.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Compliance with Rule 25B of Companies Rules, relating to the physical evidence of the company&#8217;s registrar&#8217;s office, has been released by the <\/span><span style=\"font-weight: 400;\">MCA<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><b>Table of content\u00a0<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">Compliance with Rule 25B of Companies Rules &#8211; physical verification<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#How\"><span style=\"font-weight: 400;\">How does physical verification work?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#on\"><span style=\"font-weight: 400;\">Report on the Compliance of Rule 25B of Companies Rules<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#be\"><span style=\"font-weight: 400;\">Attachments that should be set forth with the ROC&#8217;s Report:<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#to\"><span style=\"font-weight: 400;\">A Notice to Company and Directors<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#a\"><span style=\"font-weight: 400;\">What can a company do to avoid penalties?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Conclusion\"><span style=\"font-weight: 400;\">Conclusion<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"of\"><b>Compliance with Rule 25B of Companies Rules &#8211; physical verification<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The government adopted the <\/span><span style=\"font-weight: 400;\">Companies (Incorporation) Third Amendment Rules, 2022<\/span><span style=\"font-weight: 400;\"> to establish a clear process for the physical verification of recorded addresses. Following rule 25A, the MCA has adopted a brand-new rule called 25B (Physical verification of the company&#8217;s registered office).<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to the new regulations, <\/span><a href=\"https:\/\/www.cagmc.com\/roc-filing\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ROC<\/span><\/a><span style=\"font-weight: 400;\"> will physically check out a company&#8217;s registered office in front of unbiased eyewitnesses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Competent authority will also need to take a picture of the company&#8217;s registered office during the physical verification.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By checking it to copies of the supporting documents gathered during the physical proof. Meanwhile, which is legalized by the building owner, ROC will verify the Company&#8217;s legitimacy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After the verification is finished, a full report with extensive information, such as location details and images, will be provided.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ROC will alert the Company and the Directors if the registrar&#8217;s office is found to be unable to accept all notices.<\/span><\/li>\n<\/ul>\n<h2 id=\"How\"><b>How does physical verification work?<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The physical verification of the company&#8217;s registrar&#8217;s office must take place in front of two unbiased eyewitnesses. However, who are residents of the area where the registered office is located, as per the new rule? If necessary, the ROC may also request assistance from the local police.<\/span><\/p>\n<h2 id=\"on\"><b>Report on the Compliance of Rule 25B of Companies Rules<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">ROC will generate the Physical Verification Report of the <\/span><span style=\"font-weight: 400;\">company&#8217;s Registered<\/span><span style=\"font-weight: 400;\"> Office in the following format.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name of the company and CIN number.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to MCA 21 data, this is the company&#8217;s current address.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The date and the letter of permission that was granted by the Registrar of Companies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name of the Company&#8217;s Registrar<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Date and time of the physical inspection.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Information about the Company and a nearby landmark.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Information about the individuals is accessible at the time of physical verification.<\/span><\/li>\n<\/ul>\n<h2 id=\"be\"><b>Attachments that should be set forth with the ROC&#8217;s Report:<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A copy of the agreement,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Documents of ownership, lease, or no objection certificate (NOC) from the owner or lessee at the company&#8217;s registered office.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The registered office&#8217;s image<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A personal ID card with self-attestation<\/span><\/li>\n<\/ul>\n<h2 id=\"to\"><b>A Notice to Company and Directors<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Registrar shall issue a written notice\u00a0to the Corporation and all of its <\/span><span style=\"font-weight: 400;\">directors<\/span><span style=\"font-weight: 400;\">. Therefore, specifying his intent to eliminate the name of the corporation from the register of companies. However, they are requesting that they send their representations along with copies of any pertinent documents, if any, within 30 days following the date of the notice before taking any further action.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Therefore, under this section where the Registered Office of the Company is perceived to be incapable of accepting and admitting all information exchanges and alerts.<\/span><\/p>\n<h2 id=\"a\"><b>What can a company do to avoid penalties?<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The company&#8217;s managing director, as well as other individuals in charge of the company&#8217;s management, are therefore told to take note of the aforementioned rule. Companies are advised to stringently abide by Section 12 of the <\/span><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Companies Act, 2013<\/span><\/a><span style=\"font-weight: 400;\">, to prevent such consequences, serious punishments on the company and its executives, and activities such as expelling the name of the company from the company&#8217;s register. However, they can prevent it by:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paint or affix the name of the company, its registered address, and the registered e-mail id.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, maintain the exact imprint on the exterior of each office where its operations take place, in a prominent position, with legible letters. Additionally, keep the same painted or affixed in the vernacular of the region where the company&#8217;s registered office is located.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get your company&#8217;s\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">name and address\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">and Corporate Identity Number (CIN),<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">printed on all of your letterhead, business correspondence, billheads, letter papers, notices, and other official publications. You should also have your company&#8217;s name printed on all of your promissory notes, bills of exchange, and other documents.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Note<\/b><span style=\"font-weight: 400;\">: If a corporation has changed its name in the past two years, it must additionally paint or affix the previous name, as well as its current name, in addition to the current name. Wherever the name of the company is imprinted the phrase <\/span><a href=\"https:\/\/www.cagmc.com\/one-person-company\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">&#8220;One Person Company<\/span><\/a><span style=\"font-weight: 400;\">&#8221; must appear in brackets beneath the name of the OPC.<\/span><\/p>\n<h2 id=\"Conclusion\"><b>Conclusion<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Companies (Incorporation) Third Amendment Rules, 2022, new regulations, seek to physically verify the registered address of the company. A new rule 25B is the result of this change. However, it is bringing in the limelight to discuss the primary goal of the change i.e., physical verification of the registered office of the firm.<\/span><\/p>\n<p>[\/column]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Companies (Incorporation) Third Amendment Rules, 2022, an update to the Companies (Incorporation) Rules, 2014, was put to notice by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":38906,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[89],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Companies (Incorporation) Rules 2014 - Goyal Mangal &amp; 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