An amendment with Wide Circulation


The recent amendment to the Companies (Incorporation) Rules, 2014 is of wide importance. The Companies (Incorporation) Second Amendment Rules, 2019 amended the Clause (a) of sub-rule (5) of Rule 30 of the Companies (Incorporation) Rules, 2014 on popular demand which certainly result in ease of doing business in India. (It may not affect the ease of doing business rating due to the structure of the rating procedure). We also earlier demanded such amendment in our earlier post, Shifting Registered Office to another state, here.

We earlier noted as under –

Strangely, MCA puts a harder requirement in the case of English language advertisement in English language newspaper. Earlier, an advertisement in an English language newspaper circulating in the district of registered office was enough. Now, such advertisement should be in an English newspaper with the widest circulation in the state. This shall create a monopoly of the biggest one for advertisement. In absence of any official figure of widest circulation, a company may find itself amid rival claims regarding circulation.

Now according to these amendment rules, in clause (a), sub-rule (5) of rule 30, for the words “with the widest circulation”, the words “with wide circulation” be substituted.

Amendment Clause (a) of sub-rule (5) of Rule 30 of the Companies (Incorporation) Rules, 2014 now read as under –

The company shall, not more than thirty days before the date of filing the application in Form No. INC.23 –

(a) advertise in Form No.INC.26 in the vernacular newspaper in the principal vernacular language in the district and in the English language in an English newspaper with wide circulation in the State in which the registered office of the company is situated:

This is a big relief for companies proposing shifting of their Registered Office from Northern India to elsewhere. The Cost may significantly be reduced. The monopoly of the claimed number one English daily is broken. This also has another relief for the companies; they are now not required to dig out into circulation data of newspapers which may be manipulated.

However, I am always of the view that requirement for newspaper advertisements should not be there and be replaced with a public notice on MCA or such other government public notice portal, as central government may designate. It may save time and cost.

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