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Contact details made mandate in online marketplaces

Update On :03 August 2016

Contact details made mandate in online marketplaces

Considering the backdrop of instances where people have been duped by way of fraudulent activities through online marketplaces, the firms conducting business via online are instructed by the Government to provide their registration details and contact information in their web platforms. The government has also put in place stricter conditions for conversion of unlimited liability companies into a company limited by shares or guarantee by changing the rules for incorporation of companies.

The Corporate Affairs Ministry has amended the rules for incorporating a company under the Companies Act, 2013. Now every company which has a website for conducting online business or otherwise, shall disclose/publish its name, address of its registered office, the Corporate Identity Number, telephone number, fax number, e-mail address and the name of the person who may be contacted in the case of any queries or grievances on the landing/home page of the said website.

CIN is the unique number allotted to an entity after getting registered under the Companies Act.  As for conversion of an unlimited liability company into a firm company limited by shares or guarantee, the ministry has made the norms stricter. Under the amended rules, after conversion, name of the company should not be changed for one year and it will also not be allowed to give dividend unless past debt and liabilities are cleared.

In this regard, the ministry said that the past debts, liabilities, obligations or contracts do not include secured debts due to banks and financial institutions. The Corporate Affairs Ministry, which is implementing the Companies Act, has already effected a number of changes to various rules under this legislation as part of larger efforts to protect investor interests as well as improve ease of doing business. Most provisions of the Companies Act, 2013, came into effect from April 1.

News Source From : http://www.dnaindia.com/money/report-e-commerce-firms-will-now-have-to-give-their-contact-details-on-websites-2239719

Image Courtesy : http://img.etimg.com/thumb/msid-53475576,width-310,resizemode-4,imglength-64817/123.jpg

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