Online incorporation of companies within 24 hours

General Circular No. 49 /2011; GOI; MCA; Dated 23rd July, 2011

All Regional Directors, All Registrar of Companies.

 Sub: Online incorporation of companies within 24 hours

In order to give ease to the corporate world to carry business in India, the Ministry of Corporate Affairs has been simplifying the procedures under the Companies Ac t, 1956. As another step in this direc tion, the Ministry is modifying the incorporation procedures to enable promoters to get their companies incorporated online within 24 hours.

2. Ministry has already implemented online approval of Director™ s Identific ation Number (DIN) with effect from 12.06.2011 and names of the proposed c ompany will also be made available online with effect from 24.07.2011. The digital certificate of inc orporation is already being issued online by the Registrar of Companies.

3. Now, the Ministry is also simplifying the procedures to approve incorporation applications forms online.

In case the e-forms 1, 18, 32 and e-form for Memorandum of Assoc iation(MOA) and Artic les of Assoc iation (AOA) have been certified by the practicing professional regarding the correctness of the information and dec larations given by the subsc ribers, the application shall be processed electronic ally and the digital certificate of inc orporation shall be issued immediately online by the Registrar of Companies.

4. The above facility is optional to the existing proc ess of backend proc essing of applic ations by the Registrar of Companies where no such certifications have been done by the practicing professional.

5. If any of the information or dec laration given by the c ompany or certificate given by the professional in the e-forms and attachment(s)thereto is/ are, found to be wrong, false or illegal then the subscribers, declarant(s) and professional(s) shall be liable for penal action under section 628 and 629 of the Companies Ac t, 1956 in addition to penal action prescribed in regulations of the respective professional institutes.

6. Where a company has been registered online on the basis of declarations made by the subscribers, declarant(s) and certifications by the professional(s) given in the e-form, if it is found later on that the company ought not to have been registered under provisions of the Companies Ac t, 1956 read with Rules and Regulations made therein, the Registrar of Companies shall take nec essary ac tion to put the c ompany in state of suspended animation and initiate the process of revocation of the registration of the c ompany after giving an opportunity of being heard.

7. It is expected that the above immediate online approvals of DIN, availability of name and registration of e-forms-1, 18, 32 and MOA and AOA, the complete proc ess of incorporation of a company can be completed within 24 hours.

8. The above simplified process of online inc orporation of companies is likely to be implemented with effect from 11th August, 2011.

(Monika Gupta)

Assistant Direc tor

 

profile image

About Taniya

Taniya | Associate

eMinds Legal Consulting Pvt. Ltd. is a Consulting Firm in India specialzing in Corporate Laws, Compliances, Secretarial, FEMA, Indirect Taxation, Cyber Laws & Contracts. The Firm comprises of a team of professionals of Company Secretaries, Lawyers and Chartered Accountants with an in-depth subject matter knowledge and participative industry experience of over 12 years.

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates