Companies (Incorporation) Amendment Rules, 2021

The Ministry of Corporate Affairs vide notification dated 25 January, 2021 has issued the Companies (Incorporation) Amendment Rules, 2021. The amendment provides that the regional directors shall while considering the application for conversion of a company, if he is satisfied that the conversion would not be against the interests of the company or is not being made with a view to contravene or to avoid complying with the provisions of the Act, shall allow it. The conversion shall not be allowed if any inquiry, inspection or investigation has been initiated against the company or any prosecution is pending against the company under the Act.

Where an objection has been received against allowing the conversion, the Regional Director shall hold hearings within a period of thirty days and shall pass an order either approving or rejecting the application along with the reasons within thirty days from the date of hearing.


This step has been taken to eliminate the automatic deemed approval after 30 days from the date of hearing, if no order is passed by Regional director within 30 days from the date of hearing.

Also, it eases the conversion while eliminating extra-ordinary powers of Regional Director to reject the application where no consensus is received provided there should not be pending prosecution against the company.


Notification dated 25-01-2021