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    Exposure Draft Guidance Note on Cost Accounting Standard on Capacity Determination CAS-2 (Revised 2015)
    First meeting of the Governing Council of the National Investment and Infrastructure Fund (NIIF); Selection Process for Appointment of CEO, NIIF initi...
    Year End Review : Highlights of the Achievements of Ministry of Corporate Affairs
    Ministry of Corporate Affairs – initiatives and salient achievements in the last six months
    Government Approves Seven (07) Proposals of Foreign Direct Investment (FDI) Amounting to ₹ 5240.35 Crore Approximately
    High Level Committee constituted by the Government to suggest measures for monitoring the progress of implementation of Corporate Social Responsibilit...
    Serious Fraud Investigation Office (SFIO)
    National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT)
    Time taken for registration of a company cut by 50% as a part of ‘ease-of-doing business’ effort by the Ministry of Corporate Affairs; Ministry to...
    Enrolment of Foreign Companies with the Registrar of Companies
    Amendment to Companies Act
    Deliberations Between ICAI, ICSI and ICoAI on Multi-Disciplinary Partnership (MDP) Firms
    High Level Committee on Corporate Social Responsibility (CSR)
    Improving The Process of E-Filing of Documents
    Appointment of Independent Director in the Company Including Public Sector Undertakings (PSUs)
    Registered Companies with ROC
    Participation of CCI in the Conference
    CSR for War Widows and War Veterans
    Independent Directors in PSUs
    Judicious use of CSR Resources
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    Show All SummariesHide All Summaries
    December 30, 2015
    Show AI Summary
    Capacity determination standards require measurement of installed, normal and actual capacity to guide cost statements and disclosures.
    CAS 2 (Revised 2015) requires entities to determine capacity-measured as installed capacity, adjusted to normal capacity, and tracked as actual capacity utilization-using output quantities, machine/man hours or standard mixes, reassessing installed capacity on changes, and reporting these figures in cost statements with material disclosures on basis, changes, outsourced capacity, reasons for low utilization and abnormal costs.
    December 29, 2015
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    Registration as Category II Alternative Investment Fund enables NIIF to attract domestic and international investment for infrastructure projects.
    Institutional structuring and regulatory authorisation of the National Investment and Infrastructure Fund included formation of trustee and corporate entities, registration of the trust under the Indian Trust Act, appointment of India Infrastructure Finance Company Ltd and IDBI Capital Market Services Ltd as advisors on initial mandates, and SEBI registration of NIIF as a Category II Alternative Investment Fund. A Search cum Selection Committee has been constituted and publicly advertised the CEO position, including planned foreign recruitment outreach, while the Governing Council reviewed prospective greenfield, brownfield and stalled projects and international investor engagement.
    December 18, 2015
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    Companies amendment implementation spurred rule notifications, a companies law committee, section 462 exemptions and CSR oversight.
    The Ministry published and brought into force the Companies (Amendment) Act, 2015 (except sections 13 and 14) effective 29 May 2015 and notified consequential amendments to five rule-sets. It constituted a Companies Law Committee with six groups to examine implementation and related recommendations. Final notifications under section 462 grant exemptions to Private Companies, Government Companies, Section 8 companies and Nidhis. A High Level Committee on Corporate Social Responsibility submitted a monitoring report placed on the Ministry's website.
    December 14, 2015
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    Companies Act reform eases compliance and strengthens enforcement, simplifying procedures and clarifying related party and CSR rules.
    Enhancements to the Companies Act, 2013 include forty circular clarifications, fifteen rule amendments, and seven 'remove difficulties' orders to ease implementation; CSR rules were expanded. Lok Sabha approved amendments streamline related party approvals, address minimum capital and company seal practices, set explicit penalties for deposit non compliance, retain strict bail for serious fraud, and rationalize audit fraud procedures. Administrative simplification discontinues forms, substitutes declarations for affidavits, eases foreign director procedures, integrates incorporation services with a unified portal, reduces small company fees, and enables IndAS adoption. Enforcement actions include SFIO investigations into chit fund entities, steps to merge a defaulting exchange with its parent, and completed online fraud probes.
    December 12, 2015
    Show AI Summary
    Foreign direct investment approvals granted for multiple funds and equity investments; several proposals deferred or rejected thereafter.
    Government approved seven FDI proposals, permitting AIFs to accept non-resident contributions and issue units under the FDI route, authorising investments in Indian companies where FDI is allowed and distribution of income to offshore investors under the automatic route; also approved equity subscriptions and warrant issuances in a financial holding company, acquisition of shares in a core investment company, and foreign investment into an Indian subsidiary for digital education publishing. Several proposals were deferred, five were rejected, and one was determined not to lie before the Board.
    December 12, 2015
    Show AI Summary
    Corporate Social Responsibility obligations clarified; committee recommends monitoring framework and no uniform tax exemption for eligible activities.
    A High Level Committee reported recommendations for a CSR monitoring framework and noted the Government does not propose uniform tax exemptions for all eligible CSR activities. Companies are required to adopt CSR policies under the statutory CSR obligation and applicable CSR rules, and the Companies Law Committee is reviewing potential amendments to company law and rules to reflect these issues.
    December 12, 2015
    Show AI Summary
    Fraud recognition as a substantive offence strengthens investigatory powers and promotes data driven corporate fraud detection.
    SFIO has an active caseload with multiple company investigations in progress and has secured convictions through courts and disciplinary bodies. MRAU analyses public and external inputs to generate fraud alerts, corroborated by examination of books and records, and is assisted by a forensic lab despite lacking separate funding. Legislative measures include recognising fraud as a substantive offence and granting statutory status to SFIO under the Companies Act, 2013, alongside tighter corporate governance norms and increased use of technology and forensic tools for early fraud identification.
    December 12, 2015
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    Tribunal constitution under Companies Act initiated; implementation process announced following judicial decision; operations expected soon
    Provisions of the Companies Act, 2013 establishing a specialised company tribunal regime were judicially challenged and decided by the Supreme Court; the executive has initiated constitution steps and, per the corporate affairs minister's parliamentary reply, the tribunals are likely to become functional from the next financial year.
    December 11, 2015
    Show AI Summary
    Company incorporation processing time reduced; new Form INC29 to permit multiple directors and greater flexibility in name proposals.
    The Ministry has streamlined incorporation procedures by adopting an integrated mechanism and tighter Registrar monitoring, and will issue a revised Form INC29 to permit appointment of multiple directors and greater flexibility in company name proposals, alongside simplified name reservation rules and a centralized time-bound approval process.
    December 11, 2015
    Show AI Summary
    Foreign company registration must be completed within thirty days of establishing a place of business in India to ensure compliance.
    Foreign companies that establish a place of business in India, including by electronic means, must enrol with the Registrar of Companies within the specified short timeframe after establishment, creating a mandatory registration and ongoing compliance duty under the Companies Act.
    December 11, 2015
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    Corporate Social Responsibility requirement: companies must adopt CSR policies and allocate prescribed profit proportion to eligible Schedule VII activities.
    Section 135 requires qualifying companies to adopt a Corporate Social Responsibility Policy and to allocate a prescribed proportion of average net profits to CSR activities. Schedule VII defines eligible activities, expressly including relief and welfare of Scheduled Castes, Scheduled Tribes, other backward classes, minorities and women. The Companies CSR Policy Rules and the Ministry circular provide guidance on policy formulation and implementation, and the company board decides allocation of CSR funds across Schedule VII items.
    December 9, 2015
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    Multi-Disciplinary Partnership firms under deliberation by major professional institutes; councils yet to finalise modalities for members.
    Deliberations concern establishment modalities for Multi-Disciplinary Partnership firms among the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, and the Institute of Cost Accountants of India. The respective councils have not taken a final decision, and the position was stated in a written parliamentary reply that MDPs are not limited to these three institutes.
    December 8, 2015
    Show AI Summary
    Corporate Social Responsibility monitoring recommended; committee proposes methodologies, company evaluation and public reporting of compliance and effectiveness.
    The High Level Committee recommended methodologies for monitoring compliance with Section 135 and measures for companies to systematically monitor and evaluate CSR initiatives, including independent evaluation by expert agencies and consideration of distinct mechanisms for Government Companies; its report and recommendations have been placed in the public domain.
    December 8, 2015
    Show AI Summary
    Digital signature authentication required for electronic filings; procedural and support measures ensure access and system reliability.
    Electronic filing requires authentication of electronic documents by authorized signatories using digital signatures under the prescribed rules governing manner and conditions of filing; these requirements are maintained to preserve data integrity and there is no proposal to relax them.
    December 5, 2015
    Show AI Summary
    Independent Director requirements reinforce board composition and qualification standards, extending appointment criteria and limits for PSU non-official directors.
    Statutory and regulatory rules mandate minimum independent director representation for listed companies and threshold-based requirements for unlisted public companies, with these provisions extending to PSUs. Qualification and eligibility for independent directors are prescribed by company law and rules and are supplemented for CPSEs by Department of Public Enterprises criteria that set experience, educational, age, reappointment, simultaneous appointment, and private directorship limits for non official directors.
    December 4, 2015
    Show AI Summary
    Company striking-off procedures clarified as exit schemes and verification reforms enable removal of defunct firms.
    Section 560 of the Companies Act, 1956 (corresponding to Section 248 of the 2013 Act, not yet notified) permits striking off names of companies not carrying on business after prescribed procedure; the Ministry continues Easy Exit and Fast Track Exit schemes to facilitate removal of defunct companies. Registration reforms require Director Identification Numbers for directors, verification of registered office addresses with supporting documents, and in person certification by specified professionals, with detailed rules in the Companies (Incorporation) Rules, 2014.
    December 4, 2015
    Show AI Summary
    Competition advocacy under section 49: CCI restricts participation to stakeholder conferences and avoids commercial sponsorship ties.
    Under the mandate of section 49 of the Competition Act, 2002, the Competition Commission of India conducts competition advocacy by participating in stakeholder-organized conferences, seminars and workshops while maintaining a policy of not taking part in commercial events; invitations come from associations and the Commission does not engage with individual sponsors.
    December 4, 2015
    Show AI Summary
    CSR eligibility for armed forces beneficiaries: companies may fund veterans and war widows subject to board allocation under the Act.
    Schedule VII of the Companies Act, 2013 recognises CSR activities for armed forces veterans, war widows and their dependents as eligible; allocation of CSR funds among Schedule VII items is determined by the company's board under the Act.
    December 3, 2015
    Show AI Summary
    Independent director appointment requirement: administrative ministries must implement Search Committee recommendations to fill PSU board vacancies promptly.
    The appointment of non-official independent directors for CPSEs follows a DPE-facilitated process: administrative Ministries initiate proposals, DPE processes them and places candidates before the Search Committee, the Committee's recommendations are returned to the Ministries, and appointments are made by Ministries with competent authority approval; non-official directors serve a three-year tenure and vacancy filling is ongoing under prescribed timelines.
    December 3, 2015
    Show AI Summary
    CSR obligations broadened: permissible activities and administrative costs now allowed, enabling companies to pool resources for implementation.
    Implementation of Corporate Social Responsibility is mandatory for companies above statutory thresholds; Schedule VII has been amended to broaden permissible CSR activities and a clarificatory circular advocates liberal interpretation. Amendments to the CSR Rules permit expenditure on administrative overheads as eligible CSR spending and allow pooling of resources by companies to undertake CSR activities, aiming to facilitate effective compliance and judicious use of corporate resources for societal benefit.

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      Corp. Laws, SEBI & IBC

      Registered Companies with ROC

      December 4, 2015

      Contents
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      Companies registered with Registrar of Companies (ROCs), State/UT-wise as on 26.11.2015 is at Annexure – I. Number of closed companies, State/UT-wise during the last three years and current financial year is at Annexure - II.

       Section 560 of the Companies Act, 1956 (corresponding provision in Companies Act, 2013 is Section 248, which is not yet notified) provides for striking off the names of those companies which have not been carrying on business or not in operation, if the Registrar of Companies has a reason to believe so, after following prescribed procedure.   The Ministry had from time to time come out with Easy Exit Schemes to enable such companies which are not carrying on business or in operation, to apply for and get their names removed from the register.   The Ministry had also introduced a Fast Track Exit Scheme for defunct companies to approach the Registrar of Companies from time to time for striking off their names. As the scheme is still continuing, no separate/new proposal is under consideration of the Ministry.    The number of companies which have been struck off from the register of companies during the years 2012-13, 2013-14, 2014-15 and 2015-16 (till 04.11.2015) are given in Annexure-III.

      The Government has already brought out several changes in the registration process such as (i) the requirement for obtaining Director Identification Number by all Directors,   (ii) verification of the address of registered office by obtaining supporting documents, and   (iii) certification by a Company Secretary, Chartered Accountant, Cost Accountant or Advocate who, are required to personally visit the registered office and verify its existence. Detailed rules have been prescribed in Companies (Incorporation) Rules, 2014 in this regard.  Further, it is stated that while Companies Act, 2013 (Chapter XXI, Part-I) provides for registration of unregistered bodies, it does not mandate for all unregistered bodies/companies to be registered under the said Act.

      This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha.

      Annexure –I

      Number of Companies registered, State/UT-wise, as on 26.11.2015

      Sl. No.

      State/UT

      Number of Companies

      1.

      Andaman and Nicobar Islands

      278

      2.

      Andhra Pradesh

      22566

      3.

      Arunachal Pradesh

      507

      4.

      Assam

      9568

      5.

      Bihar

      21129

      6.

      Chandigarh

      13091

      7.

      Chhattisgarh

      7780

      8.

      Daman and Diu

      309

      9.

      Delhi

      282539

      10.

      Dadar Nagar Haveli

      455

      11.

      Goa

      7495

      12.

      Gujarat

      83804

      13.

      Himachal Pradesh

      4916

      14.

      Haryana

      28522

      15.

      Jharkhand

      9476

      16.

      Jammu and Kashmir

      4246

      17.

      Karnataka

      83454

      18.

      Kerala

      39500

      19.

      Lakshadweep

      12

      20.

      Maharashtra

      307838

      21.

      Meghalaya

      1001

      22.

      Manipur

      462

      23.

      Madhya Pradesh

      30828

      24.

      Mizoram

      104

      25.

      Nagaland

      503

      26.

      Orissa

      19213

      27.

      Punjab

      26823

      28.

      Pondicherry

      2977

      29.

      Rajasthan

      47318

      30.

      Sikkim

      0

      31.

      Telangana

      80702

      32.

      Tamil Nadu

      118962

      33.

      Tripura

      350

      34.

      Uttar Pradesh

      70125

      35.

      Uttarakhand

      5013

      36.

      West Bengal

      187970

      Total

      1519836

      Annexure –II

      Annexure referred to in Part (a) of the Answer to Lok Sabha Unstarred

      Question No. 1043 for 04.12.2015

      Number of closed companies, State/UT-wise

      Sl. No.

      State/UT

      Year

      2012-13

      Year

      2013-14

      Year

      2014-15

      Year

      2015-16 (upto 26.11.2015)

      1.

      Andaman & Nicobar Islands

      0

      2

      0

      0

      2.

      Andhra Pradesh

      36

      287

      481

      181

      3.

      Arunachal Pradesh

      9

      11

      0

      2

      4.

      Assam

      118

      193

      29

      44

      5.

      Bihar

      26

      3

      115

      191

      6.

      Chandigarh

      464

      110

      359

      145

      7.

      Chhattisgarh

      22

      16

      46

      40

      8.

      Daman and Diu

      0

      3

      1

      2

      9.

      Delhi

      2012

      1726

      3098

      2900

      10.

      Dadar Nagar Haveli

      0

      2

      6

      4

      11.

      Goa

      48

      105

      73

      43

      12.

      Gujarat

      342

      619

      739

      867

      13.

      Himachal Pradesh

      144

      25

      36

      107

      14.

      Haryana

      144

      146

      244

      306

      15.

      Jharkhand

      15

      0

      35

      135

      16.

      Jammu and Kashmir

      14

      10

      35

      23

      17.

      Karnataka

      63

      920

      1005

      665

      18.

      Kerala

      259

      332

      329

      382

      19.

      Lakshadweep

      0

      0

      0

      0

      20.

      Maharashtra

      2018

      2188

      2846

      2118

      21.

      Meghalaya

      19

      16

      5

      4

      22.

      Manipur

      5

      3

      0

      1

       23.

      Madhya Pradesh

      147

      237

      206

      371

       24.

      Mizoram

      10

      7

      0

      0

      25.

      Nagaland

      12

      10

      0

      3

      26.

      Orissa

      1182

      221

      415

      52

      27.

      Punjab

      1098

      136

      586

      205

      28.

      Pondicherry

      16

      18

      16

      24

      29.

      Rajasthan

      195

      300

      852

      685

      30.

      Sikkim

      0

      0

      0

      0

      31.

      Telangana

      0

      0

      6923

      704

      32.

      Tamil Nadu

      1367

      1192

      1031

      1079

      33.

      Tripura

      10

      11

      2

      2

      34.

      Uttar Pradesh

      200

      173

      553

      996

      35.

      Uttarakhand

      3

      0

      90

      38

      36.

      West Bengal

      4562

      1796

      1869

      1611

       

        Annexure –III

      Annexure referred to in Part (b) to (d) of the Answer to Lok Sabha Unstarred

      Question No. 1043 for 04.12.2015

      Number of companies struck off, State/UT-wise

      Sl. No.

      State/UT

      Year

      2012-13

      Year

      2013-14

      Year

      2014-15

      Year

      2015-16 (upto 04.11.2015)

      1.

      Andaman & Nicobar Islands

      0

      2

      0

      0

      2.

      Andhra Pradesh

      13

      251

      268

      1

      3.

      Arunachal Pradesh

      2

      11

      0

      1

      4.

      Assam

      71

      190

      25

      31

      5.

      Bihar

      25

      3

      133

      157

      6.

      Chandigarh

      364

      107

      337

      120

      7.

      Chhattisgarh

      4

      20

      28

      0

      8.

      Daman and Diu

      0

      2

      0

      0

      9.

      Delhi

      1307

      1050

      2020

      1719

      10.

      Dadar Nagar Haveli

      0

      1

      4

      4

      11.

      Goa

      22

      86

      50

      0

      12.

      Gujarat

      367

      367

      462

      662

      13.

      Himachal Pradesh

      146

      35

      21

      94

      14.

      Haryana

      96

      123

      195

      207

      15.

      Jharkhand

      11

      0

      100

      57

      16.

      Jammu and Kashmir

      5

      19

      25

      0

      17.

      Karnataka

      219

      634

      829

      587

      18.

      Kerala

      253

      319

      321

      361

      19.

      Lakshadweep

      0

      0

      0

      0

      20.

      Maharashtra

      1131

      1356

      1756

      890

      21.

      Meghalaya

      14

      15

      4

      3

      22.

      Manipur

      4

      3

      0

      0

      23.

      Madhya Pradesh

      0

      245

      194

      286

      24.

      Mizoram

      1

      7

      0

      0

      25.

      Nagaland

      8

      10

      0

      3

      26.

      Orissa

      1248

      226

      431

      46

      27.

      Punjab

      771

      145

      558

      171

      28.

      Pondicherry

      13

      17

      20

      7

      29.

      Rajasthan

      166

      266

      569

      548

      30.

      Sikkim

      0

      0

      0

      0

      31.

      Telangana

      111

      554

      90

      0

      32.

      Tamil Nadu

      695

      932

      1017

      450

      33.

      Tripura

      7

      11

      2

      2

      34.

      Uttar Pradesh

      154

      433

      693

      412

      35.

      Uttarakhand

      0

      0

      84

      33

      36.

      West Bengal

      3880

      1662

      1147

      725

      Total

      11108

      9102

      11383

      7577

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