Companies Act

NoC from secured creditor & charge holder required for conversion into company

No Objection Certificate (NoC) of secured creditor & charge holder required for conversion into company u/s 366 of Part I of Chapter XXI of the Companies Act 2013

Part I of Chapter XXI of the Companies Act 2013 (the Act) deals with Companies authorised to register under the Act. Section 366 allows registration of unregistered entities such as partnership firms, limited liability partnerships (LLPs), cooperative societies etc. with two or more members to register under the Companies Act, 2013 as a company limited by guarantee, a company limited by shares, or an unlimited company.

MCA has amended the the Companies (Authorised to Register) Rules, 2014 by notifying the Companies (Authorised to Register) Amendment Rules, 2023.

The Form URC-1 namely Application by a company for registration under section 366 has been amended to require No Objection Certificate (NoC) from secured creditor along-with charge holder of the existing entity where applicable.

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