MCA vide its notification dated 20 January 2018 has amended the Companies (Incorporation) Rules 2014 and the Companies (Registration Offices and Fees) Rules 2014 notified the Companies (Incorporation) Amendment Rules 2018 and the Companies (Registration Offices and Fees) Amendment Rules 2018 respectively which shall be effective from 26 January 2018.
- Form INC-1 (Application for reservation of Name) has been replaced with form RUN (Reserve Unique Name).
- Name application can be made without DSC requirement.
- Form INC-7 (Application for Incorporation of Company) has been done away with.
- Form INC-3 (One Person Company- Nominee Consent Form), Form INC-12 (Application for grant of License under Section 8), Form INC-22 (Notice of situation or change of situation of registered office, Form INC-24(Application for approval of Central Government for change of name) and Form INC-32 (SPICe) has been amended.
- RUN is a simple web-based form for reserving the name of the company.
- To apply for a name using RUN web form, the applicant must first create a free MCA account through which user can choose the type of company and one name choice.
- Alternatively, if the applicant wants directly incorporate a company without reserving the name (through RUN), he can file for incorporation forms using SPICe form.
- If the applicant wants to incorporate a company with a name that could be similar to an existing Company or LLP or Trademark then prior approval can be obtained from MCA for use of the name.
- Further, NOC from such registered trademark user shall be obtained which shall be attached to the RUN web form.
- Maximum Attachments size shall not exceed 6 MB.
- Under RUN service, the fee for name reservation through the RUN form is Rs.1000/- per form submission, irrespective of whether the name is approved or not.
- Resubmission option is not available, the proposed name may either be accepted or rejected directly.
- Pay later option is not available in RUN service.
- Processing will be in Non-STP mode.
- The Central Registration Centre (CRC) may on the basis of information and documents provided, reserve the name as follows:
- 20 days from the date of approval (in case name is being reserved for a new company)
- 60 days from the date of approval (in case of change of name of existing company)
- After verification by the MCA personnel at the Central Registration Centre(CRC), name approval/rejection letter would be provided by the MCA subject to the test of similarity and the applicant will be intimated through the email address registered with MCA.
- Further, zero fees for incorporation of all the companies with authorised capital up to 10 Lakhs and registration of company without share capital whose number of members does not exceed 20 members although stamp duty has to be paid for the same as per the applicable state act.
Change in Incorporation Fee structure is furnished below:
Source: Note: Stamp duty has to be paid as per state act in which proposed company is to be registered
Authors: Pradeep Badi and Ifla.A
The Ministry of Women and Child Development vide a press release dated 7th November, 2017 launched “She Box 1”.
- This is an online complaint management system for women working both in public and private sectors for reporting of sexual harassment.
- Complaints received will be directly sent to the ICC.
- This is a landmark initiative wherein a country has launched an online portal to receive complaints of sexual harassment at workplace.
REGULATORY UPDATE: MINISTRY OF LABOUR AND EMPLOYMENT-AMENDMENT TO CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970.
The Ministry of Labour and Employment vide notification dated 29th September, 2017 has proposed to amend the Contract Labour (Regulation and Abolition) Act, 1970 by introducing the Contract Labour (Regulation and Abolition) Amendment Bill, 2017.
- The wage ceiling of Rs. 500 has been removed and thus, the definition of a workman now includes a person employed in a supervisory capacity who draws wages as notified by the Appropriate Government in the Official Gazette.
- Provides for instances of obtaining temporary license.
- Introduces the provision of furnishing of work order failing which the license of the contractor can be cancelled.
- Encouraged the payment of wages through electronic mode and where the payment has to be in form of cash, the same has to be done in the presence of a representative of the principle employer.
The Ministry of Labor and Employment vide notification dated 5th September, 2017 amended Rule 69 of the Contract Labor (Regulation and Abolition) Central Rules, 1971.
- Wages to workmen can also be made via payment in their bank accounts, in addition to payment in current coin or currency payment mechanism.
- The Government has reserved the right to identify establishments wherein payment must be made only by cheque or crediting the workmen’s’ bank account. This will bring about transparency in the payment of wages to the workmen and act as a watch for any deviations from the payment of minimum wages.
The Ministry of Labor and Employment vide a notification dated 27th October, 2017 made certain amendments to the Rationalization of Forms and Reports under Certain Labor Laws Rules, 2017.
- The employer (required to file Form XIV under various Acts such as Contract Labour (Regulation and Abolition) Act, 1970; Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 ) shall now file a unified annual return online on Shram Suvidha Portal on or before 1st Feb of the next year.
The Ministry of Labour and Employment vide its order dated 17th November, 2017 amended the Maternity Benefit Act, 1961.
- It is mandatory for an establishment to provide for crèche facilities where more than 50 or more employees are being employed.
- Earlier, Section 48 of the Factories Act, 1948 mandated crèche facilities for factory establishments with 30 or more women workers, the Maternity Benefit Act has extended the same for all employers employing 50 or more persons.
The Ministry of Labour and Employment vide its notification dated 18th December proposes to amend certain provisions of the Payment Gratuity Act, 1972. The bill has been introduced in the Lok Sabha.
- Removal of the maximum amount of gratuity currently capped at 10,00,000/- asking the Central Government to provide the revised ceiling.
- Posting amendment of maternity benefit act which revised, the maternity leave from 12 weeks to 26 weeks in March 2017, the proposed bill provides that the central government may determine the revised period of maternity leave under the Payment of Gratuity Act, 1972 for the calculation of the period of continuous service for payment of gratuity.