Only declaration is required

Updated: Apr 8, 2020

THE COMPANIES (AMENDMENT) ACT, 2017 made a change in Section 7(1)(c) that ” for the words “an affidavit”, the words “a declaration” shall be substituted”.

It Means first subscriber(s) and director(s) is not required to file an affidavit on Stamp Paper of INC-9. Only Declararion in INC-9 is Mandatory on the plain paper.

Ministry of Corporate Affairs (MCA) requested to stakeholders that Filing of affidavits (from each of the subscribers to the memorandum and from persons named as the first directors, if any, in the articles that he is not convicted of any offence in connection with the promotion, formation or management of any company, or that he has not been found guilty of any fraud or misfeasance or of any breach of duty to any company under this Act or any previous company law during the preceding five years and that all the documents filed with the Registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief) as per Section 7(1)(c ) of the Companies Act, 2013 read with rule 15 of the Companies (Incorporation) Third Amendment Rules has been dispensed with vide the Companies (Amendment) Act,2017- from 27th July 2018 .

Summary

Stakeholder is required to file INC-9 in the form of Declaration and not in the form of An Affidavit.

Source: https://blog.taxmount.com

By CA Ashish jain

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