Team Blitz India
NEW DELHI: The Ministry of Corporate Affairs has taken a serious view of professionals who help companies incorporate by falsely certifying that they have visited the premises of the intended registered office.
In an early indication of likely tightening of rules governing these professionals, the ministry has flagged its concerns about wrongful certification of premises of companies to its field officers and to the self-regulator of company secretaries, the Institute of Company Secretaries of India (ICSI), according to reports.
Company secretaries, chartered accountants, cost accountants and advocates are allowed to make this certification. Falsely certifying physical premises is linked to formation of shell companies, and the government wants field officers and regulators like ICSI, Institute of Chartered Accountants of India (ICAI) and Institute of Cost Accountants of India to be vigilant and to sensitize professionals about this requirement.
As part of the paperwork of incorporating a company, professionals have to certify they have “personally visited the premises of the proposed registered office given in the form” and that the office will function from there after incorporation. Any false statement is liable for punishment.
According to reports, the Government is concerned that in certain cases, professionals have certified the existence of premises in far-flung states, raising doubts about the veracity of the certification. ICSI president Manish Gupta says the issue of fraudulent certification is of “grave concern” and that selfregulators have investigated cases for disciplinary action wherever wrongdoing has come to light.
