MCA New Notification: Clarification in the practical difficulty on newspaper advertisement at the time of shifting of registered office from one State or Union territory to another State
Dear Professional Colleagues,
In order to remove the practical difficulty regarding the change in theregistered office and to reduce the cost of incorporation of a company, the Ministry of Corporate Affairs (MCA) made the Companies (Incorporation) Second Amendment Rules, 2019 on 6thFebruary, 2019 to further amend the Companies (Incorporation) Rules, 2014.
Key points of the new notification and its applicability are as follows:
Clarification in the practical difficulty of newspaper advertisement at the time of shifting of registered office from one State or Union territory to another State.
Provision [Rule 30 of Companies (Incorporation) Rules, 2014]
Company shall advertise in the Form INC-26 in the vernacular newspaper in the principal vernacular language in the district and in the English language in an English newspaper with the widest circulation in the State in which the registered office of the company is situated.
In case of shifting of registered office from one State or Union territory to another state, an advertisement is required to be given in Form INC-26 in the English Language in an English Newspaper with the wide circulation in the state in which the registered office of the Company is situated.
The term ‘widest circulation’ was giving an impression that advertisement shall be given in the English newspaper having the widest circulation of the State meaning the largest in terms of numbers of copies sold. This was creating practical difficulty for companies intending to shift registered office as the cost of advertisement is very high,
MCA now removed this practical problem by substituting the words “widest circulation” with the words “wide circulation”. The said amendment will require publication in a newspaper having wide circulation (generally popular) and not widest circulation.
The amendment has effective from March 6, 2019.
Zero fees for Incorporation of all companies with a proposed authorized capital of rupees 15 lakh
In case of companies incorporated with a nominal capital of less than or equal to Rupees 15 lakh or in respect of companies not having share capital whose number of members as stated in articles of association does not exceed 20, fees on FormINC-32 (SPICe) shall not be applicable.
Earlier this limit was Rupees 10 lakh. Further, it is to be noted that only the fees of SPICe are removed, the other fees continue to apply.
This amendment will be effective from March 18, 2019.
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