MCA Updates: MCA notifies amendment in Incorporation Rules

Ministry of Corporate Affairs (MCA) has notified amendments in rules with respect to OPC and Company Incorporation.

MCA, on 27th July, 2018, by issuing a notification, has amended Companies (Incorporation) Rules, 2014 by changing following rules.

1. Rule 3 - One Person Company
In the sub-rule (1) of Rule 3 of Incorporation Rules, MCA has amended the existing explanations wherein the definition of "resident in india" is changed. As per previous definition, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one calendar year.

However, as per amended definition, the word "calendar year" is replaced with "financial year". Further, the notification has also clarified about how to determine "resident in india" for FY 2018-19. The notification said  that "while counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted”;

2. Rule 15 - Declaration from Subscribers and First Directors
Rule 15 of the Incorporation Rules has been replaced by new rule by which, the affidavit, which is required to be attached with Incorporation application, is no longer required. Only Declaration can be filed. 

Copy of notification can be accessed below:

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