26/08/2022
Physical Verification of addresses of the registered offices of companies under Incorporation (Third Amendment) Rules, 2022
On August 18, 2022, the government has amended rules to ensure a transparent process for physical verification of addresses of the registered offices of companies, including by way of having independent witnesses at the time of the verification.
Now, under the Companies Act, 2013, a Registrar of Companies can do a physical verification of a company's registered office if they have a reasonable cause to believe that the company concerned is not carrying out business at such registered office. The process for such physical verification has been put in place under the act.
The existing rules provided for submission of documents evidencing proof of the Registered Office of a company. The Registrar used to visit the Registered Office only to ascertain whether the company was in operation. Through the amended rules, now, the onus is on the Registrar to physically verify the Registered Office at the time of incorporation to check the authenticity of the address
The detailed steps are listed out in the new rules will help do away with discretion of authorities.
The brief procedural steps are as follows:
1. The physical verification will be done in the presence of two independent witnesses of the locality in which the company's registered office is situated.
2. If required, registrar can take the assistance of the local police, according to the corporate affairs ministry.
3. To check the documents' authenticity, the same should be cross verified with the copies of supporting documents of such address collected during the said physical verification, duly authenticated from the occupant of the property where the said registered office is situated
4. The registrar will also have to take a photograph of the company's registered office during the physical verification.
5. Once the verification is done, a detailed report with various information, including location details and photographs, will be prepared.
Disclaimer: The above is an easy presentation of the amended rule and prepared to best of our knowledge for easy presentation of the sited matter.
