All Services

MCA’s latest update: Conversion of Public Company into Private Company

Avatar

| Updated: Mar 12, 2019 | Category: News, Private Limited Company

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:

  • Until the MCA deploys the revised form RD-1, the MCA has clarified and advised all the Regional Directors to process e-Form RD-1 for applications u/s 2(41) and u/s 14 of the Companies Act, 2013, if the applicant selects the option ‘others’ on account of aforesaid applications.
  • Furthermore, MCA also clarifies that applications filed in e-form no. RD-1 must not be rejected merely on the condition that “others” is selected and “e-from is not available”. Again, this will be in practice until the Ministry of Corporate Affairs deploys the revised form.

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.
Private Limited Company Registration

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.

e-from RD-1

For the complete notification, you can click here.

  •  
  • 62
  •  
  •  
  •  
  •  
  •  
  •  
    62
    Shares
Avatar

Khushboo Priya is an experienced Legal content writer with a prodigious proof-reading and research & development skill.

10% Off On Company Registration

Related Articles

Category: IRDA Advisory, News | Date: Jul 31, 2019

All you need to know about Insurance Web Aggregator License

Currently, there are twenty-four Insurance companies in India, but how do you know which company offers you the best service as per your convenience? So, IRDA introduced the solution to...

Category: NBFC, News, RBI Advisory | Date: Oct 16, 2019

How to Appeal Against NBFC License Cancellation?

NBFCs (Non-Banking Financial Companies) are the type of companies which provide banking services like loans and advances, acquisition of stocks/bonds/shares/securities/debentures. They are incorporated as per Companies Act 2013 and regulated...


Click To Go Up Hi! My name is Akanksha! Let's talk.