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Analysis of the New Company Approval Process
Becoming an entrepreneur needs to follow multiple methods. The statutory and legal requirements for starting a new company are not sufficient for mere knowledge on the subject matter and expertise in the same. When one wants to start a new Business, various aspects are checked. Let's look at the analysis of the current approval process that differs from the old approval process
Company name approval process till February 2016
- The form to be filled for the Company name approval process was Form INC-1
- Anyone who needed company name to be approved filled in this form and submitted it to the ROC offices in the concerned states
- Such approvals did not happen in a computerized manner but were manually processed
- The processing time of these requests and issue of final approval differed from state to state
To put a full stop to such unruly way of Company Name Approval Processes and delays in the same, the concerned Ministry announced that CRC – Central Registration Centre would be responsible for all Company Name Approvals vide a circular dated 22nd January 2016
All about CRC – Central Registration Centre
- The territorial jurisdiction of Central Registration Centre is the complete Indian terrain
- Central Registration Centre will process Company Name Approval Requisition adhering to the Companies Act of India
- Central Registration Centre comes under the Administrative Control of Registrar of Companies located in New Delhi
- The effectiveness of the new system and efficiency of the Central Registration Centre is witnessed openly in the speed with which company names have been processes within this short period of time. Approvals are being released within 2 to 3 days from the date of submission of the request form
- The system has been computerized and no manual work is involved in the new method of getting approvals for Company names
- Approximately 70% of 14000 plus applications received for the Company name approval process have been approved in the past 1 month. The balance of 30% have been intimated for resubmission with changes
- The zero balance program announced by the Ministry of Commerce has insisted that Central Registration Centre clears off all applications in a quick manner particularly between Tuesday and Fridays every week.
- The Ministry has plans to centralize this process making it easier for people to start more and more profitable commercial ventures across the country
All the above substantiate the rapid growth happening in India from a commercial point of view. The plans of the Ministry of Commerce for the future is sure to make the Company Name Approval process a one-day affair soon.
Change comes in company Act: Amendment to U/s 92 of CO Act 2013 made w. e f from i.e. 28.8.2020:
Every the Company shall make a copy of the annual return posted on the website of the company's report and the web-link of that annual return must be reported to the Board of Directors Report. ca in Delhi services offered
Doing or Starting a new business/ venture in India is demanding now. We can start business with different business structure in India. Like Limited Liability Partnership, One Person Company, Private Limited Company and Sole Proprietorship. There are lot of formalities to be completed, such as extensive documentation work to be handled, getting approvals, dealing with various authoristy etc. Our experts are experienced & qualified Chartered Accountants in Delhi will support you in company formation in Delhi, Bangalore, Mumbai, Up, Haryana, Punjab or in any state of India simpler for you.
Post by Rajput Jain & Associates