ICAI has issued an Advisory on strict compliance of the company law provisions regarding due diligence/ verification of documents during the process of incorporation of a Company/ LLP, by Practicing Chartered Accountants (CAs), to avoid any penal action/ consequences for violation thereof.
ICAI Announcement dt. 28/04/2022
This advisory has been issued in view of MCA communication with ICAI stating that instances have been observed where practising professionals are not carrying out Due Diligence and Verification while carrying out incorporation of Company/ LLP. The Verification of documents pertaining to Directors, KMP, witness to MoA, AoA and verification of Registered Office are required to be done in strict accordance with the provisions of Law.
In view of above advisory, it is required to be more diligent while conducting verification of documents of director’s/ key management personnels (KMPs), signing as witness to MoA/ AoA and verification of address of the proposed Registered Office of the company/ LLP, to avoid any fabrication/ manipulation in the relevant documents.