Incorporation and use of the shell companies is one of the ways to siphoning of funds. From time to time, the central government is making all efforts to detect and de-register such shell companies from the registrar of companies – However, people always find smart ways to establish shell companies to engage in suspicious business.
The central government with the intent to further strengthen regulatory framework to cleanse shell companies enacted the Companies (Incorporation) Third Amendment Rules, 2022 to establish a rule to empower the registrar of companies to make physical verification of registered offices of the companies.
As per this new ruling, registrar of companies is empowered to make a physical visit of the registered office of the company based on the information or documents made available on MCA 21 and to take a photograph of the registered office in the course of such physical verification.
Registrar shall take documents available on MCA 21 to substantiate the authenticity of registered office of the company with a cross-physical verification of supporting documents available at the registered office.
To substantiate the physical verification of the registered office, registrar shall take the assistance of local police, as needed, and a couple of independent witnesses who are local residents of the registered office.
If during the physical verification of the registered office it is identified that registered office is not in an appropriate position to receive and acknowledge the notices send to the company at such registered office then the registrar shall send notices to the Company expressing its intent to remove such company’s name from the registrar of the companies.
Prior to the removing of name from the register of companies, registrar may request such company to submit their representations along with supporting documents (if any), within 30 days from the receipt of aforesaid notice from the registrar.
Report Format
Report on Physical Verification of the Registered Office of the Company:
1. Name and CIN of the company:-
2. Latest address of the registered office of the company as per
MCA 21 record:-
3. Date of authorisation letter issued by the Registrar of
Companies:-
4. Name of the Registrar of Companies:-
5. Date and Time of visit for physical verification of the registered office:-
6. Location details along with Landmark:-
7. Details of the person available, if any at the time of the visit(i) Name:-
(ii) Father’s Name:-
(iii) Residential address:-
(iv) Relationship with the company, if applicable:8. Remarks if any:-
9. Documents attached:-
Copy of the agreement/ ownership/ rent agreement/ No Objection Certificate of the registered office of the company from owner/ tenant/ lessor:-
(ii) Photograph of the registered office:-
(iii) Self Attested ID-Card of the person available, if any:(iv) Any other document(s):Date:
Place: Signature
Name and Designation of the official with official address.
