The Companies (Incorporation) Amendment Rules, 2022 have been published by the Ministry of Corporate Affairs (MCA) in order to further amend the Companies (Incorporation) Rules, 2014. With this notification, MCA introduces Form INC 20A (Declaration for Commencement of Business) and also inserted rule 12 (related to the Nidhi Company). Here is a brief summary of the MCA modifications to the Companies Act 2013, with effect from 1st April, 2022.
1. New Proviso Added to the Rule 12 for Nidhi Company:
The following proviso has been added to Rule 12 (Application for company incorporation):
If a company is incorporated as a Nidhi Company, it must receive the Central Government’s declaration under section 406 of the Act before starting its operations, and a statement in this regard must be filed by the firm at the time of incorporation.
2. Old Form INC 20A Substituted with the new Form:
With this notification, the MCA also a substituted Form INC 20A (Declaration for Commencement of Business).
Read on MCA modification in format of Form INC 20A: New Form INC 20A
According to Section 10A (1)(a) of the Companies Act of 2013 and Rule 23A of the Companies (Incorporation) Rules of 2014, Form INC-20A must be filed.
It is critical for all companies to register Form INC 20A and all other necessary information with the ROC (Registrar of Companies) within 180 days of company incorporation. Because if companies fail to do so, they face severe penalties. With the amendments to the Companies Incorporation Amendments Rules, the 2022 MCA is attempting to take a more comprehensive approach to company incorporation.
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