Of all the options of business entities available under the Companies Act, 2013, the option of Private Limited Company has become the most opted one by the entrepreneurs. Primarily, this...
While filing e-form RD-1, for Conversion of Public Company into Private Company and change in a financial year, stakeholders faced certain difficulties. Hence, the stakeholders escalated the matter to the Ministry of Corporate Affairs (MCA). As a result, MCA came up with the specified solution and issued a notification on 11th March 2019.
Key Highlights of filing e-form RD-1
According to the latest Circular No. 03/2019, the Ministry of Corporate Affairs(MCA) have made certain clarifications regarding the filing of e-form RD-1 for Conversion of Public Company into Private Company and change in a financial year. The clarifications are as follows:
The main intent behind introducing the changes for the filing of e-form RD-1
The primary reasons for introducing the changes in e-form RD-1 are as follows:
- In the Circular No. G.S.R. 1219(E) dated 18/12/18, the MCA notified Companies (Incorporation Fourth Amendment) Rules, 2018 and asked the Regional Directors to process the applications under section 2(41) (change in a financial year) and under section 14 of the Companies Act, 2013 (conversion of public company into private company), along with e-form RD-1.
- Secondly, due to the above notification, filing RD-1 became compulsory for filing both applications u/s 14 and u/s 2(41) of the Companies Act, 2013. But stakeholders had several issues while filing RD-1.
Therefore, to ease the process of filing e-form RD-1 so that the aforesaid applications won’t get hampered due to any reason, the Ministry introduced the required changes.
For the complete notification, you can click here.