New Delhi: The government has amended the rules relating to incorporation of companies under the Companies Act, 2013 and the changes will come into effect from September 1.
The Ministry of Corporate Affairs, implementing the Companies Act, 2013, has amended the Companies (Incorporation) Rules, 2014.
Changes have been made in the rules regarding allotment of a new name to an existing company under Section 16 of the Act.
Section 16 deals with rectification of the name of a company subject to various conditions in which the government may direct the name of a firm to be changed if it is similar or nearly identical to the name of an existing company. If any such direction is issued, it will have to be implemented by the concerned company within three months.
Now, the ministry has framed new rules wherein the tag of ‘ORDNC’ (Order of Regional Director not complied) will be attached to the name of the company which does not comply with the directive within the specified period.
For such companies, the letters “ORDNC (which is an abbreviation for the words ‘Order of Regional Director Not Complied’), shall be the year of passage of the company’s direction, the serial number and the existing Corporate Identity Number (CIN). be the new name of the company without act or deed,” according to a notification.
Further, the Registrar of Companies shall accordingly enter the new name in the register of companies and issue a fresh certificate of incorporation.
According to the ministry, once the name of the company is changed, necessary steps should be taken to comply with Section 12 of the Act which deals with the registration of the firm.
As per the new rules, ‘ORDNC’ should be mentioned “in parentheses below the name of the company where its name is printed, affixed or engraved”.
In another notification, the ministry said that the provisions of section 4 of the Act will come into force from September 1, 2021. Section 4 deals with memorandum of companies.Tesla wants reduction in import duties on electric cars: Report
At the end of June, there were 13.7 lakh registered companies operating in the country. Of these, over 17,200 new companies were set up during April to June this year. Read also: Zomato Delivers Impressive Listing Benefits, But What’s Next? Should you keep or sell? Check out what the experts say
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