Companies Second Amendment Rules, 2018 – One Person Company Registration

Short title and Commencement of Companies Amendment Act

These rules may be called the Companies (Authorized to Register) Second Amendment Rules, 2018. They shall come into force with effect from 15th August 2018. In the Companies (Authorized to Register) rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), after clause (g), the following clauses shall be inserted, namely:-

  • “society” means a society registered under the Securities Registration Act, 1860 (21 of 1860) and includes a society registered under or deemed to be registered under any other law for the time being in force;
  • “trust” means an irrevocable public charitable  or religious trust registered under any law for the time being in force and represented by its trustees, in whom the trust property is vested, as members;
  • “Registrar of Firms” means the Registrar appointed under section 57 of the Indian Partnership Act, 1932 (9 of 1932);
  • “Registrar of trusts” includes a Charity Commissioner, an Inspector-General of Registration or such other authority having the duty of registering trusts in a state.

In the said rules, for rule 3, the following rule shall be substituted, namely:-

  1. For the purposes of sub-section (2) of section 366 of the Act, the provision of Chapter 2 of the Act relating to incorporation of company and matters incidental thereto shall be applicable mutatis for such registration: Provided that there shall be two or more members for the purposes of registration of a company under this sub-rule: Provided further that a company with less than seven members shall register as a private company.
  2. A list showing the names, addresses, and occupations of all persons named there in as partners with details of shares held by them respectively, showing separately shares allotted  for consideration in cash and for consideration other than cash along-with the source of consideration and distinguishing, in cases where the shares are numbered, each share by its number, who on a day, not being more than six clear days before the day of seeking registration, were partners of the Limited Liability Partnership or firm as the case may be;
  3. A list showing the particulars of persons proposed as the first directors of the company, along with Director Identification Number (DIN), Passport number, if any, with expiry date, residential addresses and their interests in other firm or body corporate along with their consent to act as directors of the company;
  4. In case of a firm, deed of partnership, bye-laws or other instrument constituting or regulating the firm and in case the deed of partnership was revised at any time in the past, copies of the principal and all subsequent deeds including the latest deed, along with the certificate of registration issued by the Registrar of Firms, in case the firm is registered;
  5. Written consent or No Objection Certificate from all the secured creditors of the applicant;
  6. Written consent, from the majority of members whether present in person or by proxy at a general meeting, agreeing for such company registration;
  7. An undertaking that the proposed directors shall comply with the requirements of the Indian Stamp Act, 1899 (2 of 1899) as applicable;
  8. A copy of the latest income tax returns of the limited liability partnership or firm, as the case may be.

In case of an application by a Limited Liability Partnership or firm for registration as a company limited by guarantee or as an unlimited company-

companies
  • A list showing the names, addresses and occupations of all persons, who on a day, not being more than six clear days before the day of seeking registration, were partners of the Limited Liability Partnership or firm, as the case may be with proof of membership;
  • A list showing the particulars of persons proposed as the first directors of the company, along with DIN, passport number, if any, with expiry date, residential addresses and their interests in other firm or body corporate along with their consent to act as directors of the company;
  • In case of a firm, deed of partnership, bye laws or other instrument constituting or regulating the company and in case the deed of partnership was revised at any time in the past, copies of the principal and all subsequent deeds including the latest deed, along with the certificate of  the registration issued by the Registrar of Firms, in case the firm is registered;
  • In the case of a company intended to be registered as a company limited by guarantee, a copy of the resolution declaring the amount of guarantee;
  • Written consent or No Objection Certificate from all the secured creditors of the applicant;
  • Written consent from the majority of members whether present in person or by proxy at a general meeting agreeing for such company registration;
  • An undertaking that the proposed directors shall comply with the requirements of the Indian Stamp Act, 1899 (2 of 1899), as applicable;
  • A copy of the latest income tax return of the Limited Liability Partnership or firm, as the case may be.

In case of an application by a society for registration as a company limited by guarantee under section 8-

  • A list showing the names, addresses and occupation of all persons, who on a day, not being more than six clear days before the day of seeking registration, were members of the society with proof of membership;
  • A list showing the particulars of persons proposed as the first directors of the company, along with DIN, passport number, if any, with expiry date, residential addresses and their interests in other firms or bodies corporate along with their consent to act as directors of the company;
  • A list containing the names and addresses of the members of the governing body of the society;
  • A certified copy of the certificate of registration of the society;
  • Written consent or No Objection Certificate from all the secured creditors of the applicant;
  • Written consent from the majority of members whether present in person or by proxy at a general meeting agreeing for such registration, and the resolution shall also provide for declaration of the amount of guarantee;
  • An undertaking that the proposed directors shall comply with the requirements of the Indian Stamp Act, 1899 as applicable;
  • A copy of the latest income tax return of the society;
  • Details of the objects of the company along with a declaration from all the members that the restrictions and prohibitions as mentioned in clause (b) and clause (c) of sub-section (1) of section 8 of the Act shall be complied.

In case of an application by a trust for registration as a company limited by guarantee under section 8-

companies
  • A list showing the names, addresses and occupations of all persons, who on a day, not being more than six clear days before the day of seeking registration, were trustees  of the trust with proof thereof;
  • A list showing the particulars of persons proposed as the first directors of the company, along with DIN, Passport number, if any, with expiry date, residential addresses and their interests in other firm or body corporate along with their consent to act as directors of the company;
  • A certified copy of the certificate of registration of the trust and the trust deed;
  • Written consent or No Objection Certification from all the secured creditors of the applicant;
  • Written consent from the majority of members whether present in person or by proxy at a general meeting agreeing for such company registration, and the resolution shall also provide for declaration of the amount of guarantee;
  • An undertaking that the proposed directors shall comply with the requirements of the Indian Stamp Act, 1899 as applicable.
  • A copy of the latest income tax return of the trust;
  • Details of the objects of the company along with a declaration from all the members that the restrictions and prohibitions as mentioned in clause (b) and clause (c) of sub-section (1) of section 8 Act complied.

Where an application is made by a society or trust for registration as a company limited by guarantee and it has been proved to the satisfaction of the Registrar that the proposed company has its objects in accordance with clause (a) of sub-section (1) of section 8 of the Act and it intends to comply with the restrictions and prohibitions as mentioned respectively in clause (b) and clause (c) of that sub-section, the Registrar shall issue a license in Form No. INC. 16 to allow such society or trust to be registered as a limited company without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited Company” and thereupon issue a certificate of incorporation in terms of sub-rule (4) of rule 4 on an application submitted under Chapter 2 of the Act for incorporation of a company: Provided further that a society which has not filed the annual or other returns, statutorily required to be filed with the Registrar of societies, shall not be eligible to apply for registration under section 366 of the Act.

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