The Central Government vide its notification dated 18th August, 2022 amended the Companies (Incorporation Rules), 2022 to insert a new rule 25B. It stipulates,
What is the change?
The RoC now has the power to cause a physical verification of the registered office of any company in the following manner:
How does it affect startups?
In the event, the physical verification is unsuccessful, the RoC shall send a show cause notice to the Company and its directors with an intention to remove the name of the Company from the Register of the Companies under Section 248 of the Companies Act, 2013. On failure to show cause for the reason why the company is not carrying on any business or operations from the registered office address, the company becomes eligible to be struck off the Register of Companies and hence shall shut down.
Checklist for ensuring compliance with the new amendment:
Any change in the registered office address should be reported to the RoC. Notice of every change of the situation of the registered office, after the date of incorporation of the company, shall be given to the Registrar within thirty days of the change of registered address in form INC—22.
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