Amendment in Companies Incorporation Rules
Summary:
MCA has issued Companies (Incorporation) Third Amendment Rules, 2020. MCA issued this notification on 24th December 2020.
MCA has introduced Rule 9A i.e. Extension of Reservation of Name in certain cases.
Applicability:
This Rule 9A shall come into effect from 26th January 2021
PRESENT PROVISION:
As per provisions of Companies Act, 2013, the Name reserved for the incorporation of the Company shall be reserved for a maximum of 20 days. If the promoter fails to incorporate Company within 20 days then the name shall expire.
AMENDED PROVISION:
The promoter can get an extension in the expiry of name through Spice+ form after payment of specified fees as follow:
| S.No. | No. of Days | Fees | Condition | |
| 1. | 40 days from Date of Approval of Name | Rs. 1,000 | Payment required to be made before the expiry of 20 days from approval of name. | |
| 2. | Sixty Days from the date of Approval | Rs. 2,000 | Payment required to be made before the expiry of 40 days from approval of name. | |
| 3. | Sixty Days from the date of Approval | Rs. 3,000 | Payment required to be made before the expiry of 20 days from approval of name. | |
Conclusion:
Ministry has given this relaxation to Corporates to use reserved name up to 60 days from approval of name instead of 20 days from approval of the name by payment of specific fees.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).
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