New Delhi, 31 Jul 2016
Government has said that online business companies will have to provide details of their registeration with the government and contact details of a person to be contacted in case of a grievance.
Companies conducting online business will now have to provide details on their websites about their registration with the government as well as information about person to be contacted for grievances.
The government's move to introduce the requirement for companies comes against the backdrop of instances where people have been duped by way of fraudulent activities, including through online platforms.
Tweaking the rules for incorporation of companies, the government has also put in place stricter conditions for conversion of unlimited liability companies into a company limited by shares or guarantee.
The Corporate Affairs Ministry has amended the rules for incorporating a company under the Companies Act, 2013.
Now, "every company which has a website for conducting online business or otherwise, shall disclose/publish its name, address of its registered office, the Corporate Identity Number, telephone number, fax number, if any, e-mail and the name of the person who may be contacted in the case of any queries or grievances on the landing/home page of the said website".
CIN is the unique number allotted to an entity after getting registered under the Companies Act.
As for conversion of an unlimited liability company into a firm company limited by shares or guarantee, the ministry has made the norms stricter.
Under the amended rules, after conversion, name of the company should not be changed for one year and it will also not be allowed to give dividend unless past debt and liabilities are cleared.
In this regard, the ministry said "past debts, liabilities, obligations or contracts do not include secured debts due to banks and financial institutions".
The Corporate Affairs Ministry, which is implementing the Companies Act, has already effected a number of changes to various rules under this legislation as part of larger efforts to protect investor interests as well as improve ease of doing business.
Most provisions of the Companies Act, 2013, came into effect from April 1.