The Ministry of Corporate Affairs had setup the Central Registration Centre in 2016 for processing “Name Availability” and “Incorporation” applications for starting a new company. In cases where the applications are compliant with the Companies Act/Rules, the same are processed within the next 1-2 working days.

The authenticity is ensured by obtaining a declaration and certification by a professional such as an advocate/ chartered accountant / cost accountant / company secretary in practice. In addition, the person named in the Articles of Association as a director/manager/secretary of the company has to give a declaration confirming the fulfilment of all requirements for registration under the Companies Act and Rules thereunder. Any false statement in this regard is punishable under section 448 of the Companies Act, 2013.

This was stated by Shri Arjun Ram Meghwal, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha today.

Declarations and professional certification secure company incorporation, with false statements subject to penal consequences under the Companies Act. Central Registration Centre processes name availability and incorporation applications promptly when compliant; authenticity requires a practising professional's declaration and certification plus a declaration by the person named as director/manager/secretary confirming fulfilment of registration requirements; false statements in these declarations attract penal consequences under the Companies Act.