Govt amends rules making physical verification for registered company's address transparent; Check details here

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New Delhi: The government has amended the rules of company registration to make the process of physical verification of registered companies’ address more transparent. Now at the time of the verification, the method of taking the photograph of registered company office and the presence of Independent witnesses will be adopted. The ministry of Corporate affairs has amended the rules of company’s address verification in the companies act, 2014. The new rules has come to effect with the gazette notification.

Registrar of companies will decide the need of Physical verification

According to the section 12 of the act, Registrar of companies can decide to do physical verification of the company’s registered address if he thinks that the company isn’t doing its business properly. Now the amendment has fixed the process of the physical verification. Two Independent witnesses of local level are needed now during the physical verification. Local police have been used at times of need during the verification, according to the rule.

Document verification of the building attached to the address

It will also be necessary to test the documents of the building attached to the address given at the time of registration of the company. After that a photo will be taken of that registered address and a full report will be created after the completion of every process. If it is found that correspondence isn’t happening at the registered address, then the concerned Registrar shall send a notice to the company and its directors asking them to inform about it.

On the basis of the reply received from the company, it will be decided whether to remove the name of that company from the government records or not, according to the amendment made by the ministry of corporate affairs.