{"id":47113,"date":"2022-08-23T11:04:01","date_gmt":"2022-08-23T05:34:01","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=47113"},"modified":"2022-10-07T16:51:05","modified_gmt":"2022-10-07T11:21:05","slug":"new-rules-for-physical-verification-of-registered-address-of-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/new-rules-for-physical-verification-of-registered-address-of-company\/","title":{"rendered":"New Rules regarding Physical Verification of Registered Address of Company"},"content":{"rendered":"\n

The Companies (Incorporation) Rules, 2014, notified under the Companies Act, was amended for the third time on 18th August 2022 by the Ministry of Corporate Affairs (MCA)<\/strong>[1]<\/strong><\/a><\/sup>. By this Amendment, a new Rule regarding the physical verification of the registered address of company has been inserted. In this blog, we will discuss the overall analysis of this new Amendment named Companies (Incorporation) Third Amendment Rules, 2022. <\/p>\n\n\n\n

The Original or Principal\nRules, i.e., Companies (Incorporation) Rules, 2014, were published in the\nOfficial Gazette of India on 31st March 2014 and were last amended on 8th April\n2022.  <\/p>\n\n\n\n

New Rules on Registered\nAddress of Company <\/h2>\n\n\n\n

The new Companies (Incorporation) Third Amendment Rules, 2022 have been notified to ensure a transparent process for physical verification of any company’s registered address as well as the process of having the presence of independent witnesses and taking photographs of the registered address of company’s office<\/strong><\/a> at the time of verification. <\/p>\n\n\n\n

Notification<\/h3>\n\n\n\n

The Government of India,\nvia the Ministry of Corporate Affairs, has notified on 18th August 2022 of the\nCompanies (Incorporation) Third Amendment Rules 2014 in the exercise of powers\nconferred under Sections 3, 4, 5 (5) (6), 6, 7 (1) (2), 8 (1) (2), 11 (1)\n(a)(b), 12 (2) (3) (4) (5) (9), 13 (3) (4) proviso of (5), 14 (2), 17 (1), 20\n(1) (2) and 469 (1) (2) of the Companies Act 2013.  <\/p>\n\n\n\n

The Rule will come into\nforce on publication in Official Gazette. <\/p>\n\n\n\n

Insertion of Rule 25B<\/h3>\n\n\n\n

Section 12 of the Companies Act 2013 talks about the company’s registered office, and its sub-section (9) mentions the physical verification of the company’s registered office address. It states that the Registrar of Companies may physically verify a registered address of company’s office and if he has a reasonable cause to believe that the concerned company is not carrying out business properly. And this physical verification is the sole ground of this Amendment.\u00a0<\/p>\n\n\n\n

In the Companies\n(Incorporation) Rules 2014, after Rule 25A, a new Rule 25B<\/em> has\nbeen inserted with the heading “Physical Verification of\nRegistered Office of the Company”<\/em>. Rule 25A was inserted by the\nCompanies (Incorporation) Amendment Rules, 2019 and is related to the ACTIVE\n(Active Company Tagging Identities and Verification), and this Companies\n(Incorporation) Amendment Rules 2019 was notified by the Government of India\nvia the Ministry of Corporate Affairs on 21st February 2019 and came into\neffect from 25th February 2019. Rule 25A was inserted after Rule 25, which\ntalks about the verification of registered office. <\/p>\n\n\n\n

Overview of Rule 25B<\/h3>\n\n\n\n

The New Rule 25B talks\nabout the Physical Verification of the Company’s Registered Office. The\nRegistrar, on the basis of the information or documents available on MCA 21,\nmust visit the registered address of company office and may also conduct\nphysical verification of the said registered company’s office for the purpose\nof Section 12 (9) of the Companies Act 2013, in the presence of two independent\nwitnesses of the same locality of the registered office. During such\nverification, if required, he may seek the assistance of local Police. <\/p>\n\n\n\n

Registrar must carry the\ndocuments filed in support of the address of the registered office of the\ncompany for the physical verification and also to check the authenticity of the\nsame by cross verifying with the documents of such address obtained during the\nphysical verification and duly authenticated from the occupant\/ owner of the\nproperty where the said registered office of the company is situated.<\/p>\n\n\n\n

The Registrar must take\npictures of the registered address of company’s office during the physical\nverification. <\/p>\n\n\n\n

The Registrar prepares the physical verification report in the prescribed format only. The report must contain following details:<\/p>\n\n\n\n