Sep 7, 2011

Updates from MCA

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Online Incorporation of Companies within 24 hours revisited

MCA has vide its General Circular no. 61/2011 dated 05th September 2011 issued a clarification to its earlier General Circular No. 49/2011 dated 23rd July, 2011 which provided for the online incorporation of Companies within 24 hours. The earlier circular stated that, if the e-forms 1, 18, 32 and e-form for Memorandum of Association (MOA) and Articles of Association (AOA) have been certified by the practicing professional regarding the correctness of the information and declarations given by the subscribers, then the application shall be processed electronically and the digital Certificate of Incorporation shall be issued immediately online by the Registrar of Companies.

The matter was revisited and considering the fact that nowadays, the companies are already being incorporated within 24-48 days, the proposal of such online approval has been reverted.

Companies coming out with IPO/FPO during the year 2011-12 not required to prepare financials as per Revised Schedule VI

MCA has vide its Circular No. 62/2011 dated 5th September,2011 issued a clarification on Notification No. S.O. 447(E) dated 28th February, 2011 regarding revised Schedule VI. The Ministry recognized that for companies coming up with IPOs or FPOs in Financial Year 2010-11, it would be cumbersome to prepare the accounts as per the revised Schedule VI and would involve a lot of administrative work. Therefore, relaxing the companies from this requirement, it has been clarified that the companies may prepare financial statements as per pre-revised Schedule VI, for the limited purpose of IPO/FPO during the financial year 2011-12. However, from Financial Year 1st April, 2012 onwards, the companies are bound to prepare them as per the revised Schedule VI.

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