Procedures for the online registration of new firms are being simplified and likely to be implemented from August 11, said the Ministry of Corporate Affairs.
The entire process of incorporation of a company, from online approval of Directors Identification Number, availability of name and registration of e-forms, can be completed within 24 hours, said the Ministry.
The online application process would be optional to the existing process of backend processing by the Registrar of Companies (RoC) where no such certifications have been done by the practicing professional.
“In case, the e-forms 1, 18, 32 and e-form for Memorandum of Association (MOA) and Articles of Association (AOA) have been certified by the practicing professional regarding the correctness of the information and declarations given by the subscribers, the application shall be processed electronically and the digital certificate of incorporation shall be issued immediately online by the RoC,” said an MCA release.
If any of the information, declaration or certificate given by the company or professional in the e-forms and attachments is found to be wrong, false or illegal, subscribers, declarants and professionals shall be liable for penal action under Section 628 and 629 of the Companies Act, 1956 in addition to penal action prescribed in regulations of the respective professional institutes.
If it is found later that a registered company ought not to have been registered under provisions of the Companies Act, it would be given an opportunity to present its case. If the company is found to be in the wrong, the company may be put in a state of suspended animation and a process of revocation of its registration would be initiated by the RoC.