Many companies these days conduct their business online. However, there are certain instances where people have been deceived by way of fraudulent activities including through online platforms. Observing the same, the Government has made a move to introduce the requirement for companies where they will have to provide details about their registration with government as well as information about contact person for grievances on their websites.
The government has tweaked the rules for incorporation of companies by putting in place stricter conditions for conversion of unlimited liability companies into a company limited by shares or guarantee. The rules for incorporating a company has been amended by the Corporate Affairs Ministry under the Companies Act, 2013 where in every company which has a website for conducting online business or otherwise, will have to disclose/publish its name, its registered office address, the Corporate Identity Number, telephone number, fax number, if any, name and e-mail of the person who may be contacted in the case of any queries or grievances on the landing/home page of the said website.
An entity after getting registered under the Companies Act, is allotted an unique number called CIN.The ministry has made the norms for conversion of an unlimited liability company into a firm company limited by shares or guarantee, stricter.
Further, as per the amended rules, after conversion, for one year the name of the company should not be changed and the company will not be allowed to give dividend unless past debt and liabilities are cleared.
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In this regard, the ministry said “past debts, liabilities, obligations or contracts do not include secured debts due to banks and financial institutions.”
As part of larger efforts to protect investor interests as well as improve ease of doing business, a number of changes to various rules under this legislation has already come into effect by the Corporate Affairs Ministry, which is implementing the Companies Act. Most provisions of the Companies Act, 2013, came into effect from April 1.