{"id":39126,"date":"2022-10-04T18:16:54","date_gmt":"2022-10-04T12:46:54","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=39126"},"modified":"2024-06-01T14:42:06","modified_gmt":"2024-06-01T09:12:06","slug":"new-process-for-physical-verification-of-registered-office","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/new-process-for-physical-verification-of-registered-office\/","title":{"rendered":"New process for Physical Verification of Companies Registered Addresses"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-39132 size-full\" title=\"New Process for Physical Verification of Registered Office\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2022\/10\/New-process-for-Physical-Verification-of-Companies-Registered-Addresses-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>The amendment for the new process for physical verification of companies was recently introduced. Since this Act is so complex in itself it will create confusion in the minds of the people and people afraid of establishing their company due to the intricacies involved in it. This article gives an emphasis on understanding the new process for physical verification of companies&#8217; registered addresses.<\/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 contents:<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Introduction\"><span style=\"font-weight: 400;\">Introduction<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">New Process for Physical Verification of Companies&#8217; Registered Addresses<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Rule\"><span style=\"font-weight: 400;\">Rule Before Amendment<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#after\"><span style=\"font-weight: 400;\">Rule after Amendment<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#25B\"><span style=\"font-weight: 400;\">Companies Registered Address: Rule 25B<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Conclusion\"><span style=\"font-weight: 400;\">Conclusion\u00a0<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"Introduction\"><b>Introduction\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Companies Act, 2013 in India defines a company in Section 2(20<\/span><b><i>)<\/i><\/b><span style=\"font-weight: 400;\"> as \u201ca company incorporated under this actor under any previous company law\u201d. This means that any corporation which is incorporated and registered under this Act or under other previous company Act will be called a company.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A company is considered to be an artificial legal person according to Indian Constitution which has an independent legal entity and a common legal seal for its signatures.<\/span><\/p>\n<h2 id=\"of\"><b>New Process for Physical Verification of Companies&#8217; Registered Addresses<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The government has amended the Companies (incorporation) rules, 2014 to ensure a transparent process for the physical verification of companies&#8217; registered addresses, including by way of having the presence of independent witnesses and clicking the photograph of the registered office at the time of the verification.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The rules under the Companies Act, 2014, have been amended by the corporate affairs ministry and will come into effect once notified in the Official Gazette. Accordingly, the Ministry has notified the Companies (Incorporation) Third Amendment Rules, 2022 by delineating the provisions for \u201cPhysical verification of the Registered Office of the company\u201d under a newly inserted rule 25B.<\/span><\/p>\n<h2 id=\"Rule\"><b>Rule before Amendment<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Before moving to the amendment, the old rule was the prescribed provisions under section 12 of the Companies Act, 2013 which led to the mandate that every registered company must always have a registered office address within 30 days from the date of incorporation and thereafter. Further, a company shall, within thirty days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.<\/span><\/p>\n<h2 id=\"after\"><b>Rule after Amendment<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Under the Companies Act, 2013, a Registrar of Companies (RoC) can do a physical verification of a company\u2019s registered office if he or she has a reasonable cause to believe that the company concerned is not carrying out business in a proper manner or any false documentation has been shown. Such process for physical verifications has been put in place under the Act vide notification dated 18th August 2022 amended Companies (Incorporation) Rules, 2014.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For the same Rule, 25B shall be inserted i.e., Physical Verification of the Registered office of the Company<\/span><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/p>\n<h2 id=\"25B\"><b>Companies Registered Address: Rule 25 B<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The New Rule 25 B talks about the <\/span><a href=\"https:\/\/www.cagmc.com\/physical-verification-of-registered-office-by-roc\/\"><span style=\"font-weight: 400;\">Physical Verification<\/span><\/a><span style=\"font-weight: 400;\"> of the Company\u2019s Registered Office.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Registrar, on the basis of the information or documents available on MCA 21, must visit the registered address of the company office and may also conduct physical verification of the said registered company\u2019s office for the purpose of Section 12 (9) of the Companies Act, 2013.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verification can be done in the presence of two independent witnesses of the same locality of the registered office.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During such verification assistance of local Police can be taken.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The registrar must carry the documents filed in support of the address of the registered office of the company for the physical verification of the same.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Registrar must take pictures of the registered address of the company\u2019s office during the physical verification.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registrar can also check the authenticity of the same by cross-verifying with the documents of such address obtained during the physical verification and duly authenticated from the occupant\/ owner of the property where the said registered office of the company is situated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Registrar prepares the physical verification report in the prescribed format only. The report must contain the following details:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name and CIN (Company Incorporation Number) of the Company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recent Address of the Company\u2019s Registered Office as per the record of MCA 21<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Date of Authorisation letter issued by the Registrar of Company (ROC)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name of Registrar of Company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Date and Time of physical verification of the registered office of the company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of location along with landmark<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of the person available at the visit for physical verification including his name, father\u2019s name, residential address and relationship with the company (if applicable).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> This report must include Documents to be attached in the report are as follows:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Copy of the agreement, ownership, rent agreement or No Objection Certificate of the registered address of the company\u2019s office from the owner, tenant or lessor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Photograph of the registered office.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Self-attested ID Card of the person available at the time of verification.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If the company\u2019s registered office is found to be not capable of receiving and acknowledging all notices and communications then the Registrar must send a notice to the <\/span><span style=\"font-weight: 400;\">company<\/span><span style=\"font-weight: 400;\"> and its directors writing his intention to remove the name of the company from the Register of Companies and requesting or asking them to send their representations along with copies of all the relevant documents within 30 days from date of notice before taking further actions in accordance with the provisions of Section 248 of the Companies Act, 2013.<\/span><\/p>\n<h2 id=\"Conclusion\"><b>Conclusion<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Under the <\/span><span style=\"font-weight: 400;\">Companies Act, 2013<\/span><span style=\"font-weight: 400;\">, a <\/span><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/contact-us\/roc.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Registrar of Companies (RoC)<\/span><\/a><span style=\"font-weight: 400;\"> can do a physical verification of a company\u2019s registered office if he or she has a reasonable cause to believe that the company concerned is not carrying out <\/span><span style=\"font-weight: 400;\">business<\/span><span style=\"font-weight: 400;\"> in a proper manner or any false documentation has been shown. Such process for physical verifications has been put in place under the Act vide notification dated 18th August 2022 amended Companies (Incorporation) Rules, 2014. For the same Rule, 25B shall be inserted i.e., Physical Verification of the Registered office of the Company<\/span><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The amendment for the new process for physical verification of companies was recently introduced. Since this Act is so complex 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