Companies (Registered Valuers and Valuation) Amendment Rules, 2026: ₹25 Lakh Paid-up Capital Requirement for Registered Valuer Organisations (RVOs)
The Ministry of Corporate Affairs (MCA) has introduced an important amendment affecting Registered Valuer Organisations (RVOs) under the Companies (Registered Valuers and Valuation) Rules, 2017. The amendment prescribes a minimum paid-up share capital requirement of ₹25 lakh for eligible RVOs and provides a transition period for existing organisations.
If you are searching in Ghaziabad, Noida, Delhi NCR, Vaishali, Indirapuram, Vasundhara, or nearby areas for an Income tax consultant near me, GST consultant near me, Company registration consultant near me, or Tax consultant near me, understanding this MCA amendment is important for organisations involved in valuation services and corporate compliance.
Latest Update
The Ministry of Corporate Affairs notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2026 vide Notification G.S.R. 432(E) dated 1 June 2026.
The amendment came into force from 1 June 2026 upon its publication in the Official Gazette.
The major change is the introduction of a minimum paid-up share capital requirement of ₹25 lakh for companies seeking recognition as Registered Valuer Organisations (RVOs). Existing recognised RVOs have been granted time until 31 March 2028 to comply with this requirement.
Practical Explanation
What does this amendment mean?
The amendment strengthens the financial eligibility standards for organisations seeking recognition as Registered Valuer Organisations.
Earlier, Rule 12 did not prescribe this enhanced capital threshold. After the amendment, eligible company-based RVOs must maintain at least ₹25 lakh paid-up share capital.
Example
Suppose a Section 8 company wishes to become an RVO after 1 June 2026.
If its paid-up share capital is only ₹12 lakh, it will first need to increase its capital to at least ₹25 lakh before it can satisfy the revised eligibility condition.
Similarly, an existing recognised RVO with paid-up capital below ₹25 lakh as on 1 June 2026 is not immediately disqualified. Instead, it has time until 31 March 2028 to comply.
Comparison Table
|
Particular |
Before Amendment |
After Amendment |
|
Minimum paid-up share capital |
No ₹25 lakh requirement |
₹25 lakh mandatory for eligible company RVOs |
|
Effective date |
Earlier Rule |
1 June 2026 |
|
Existing recognised RVOs |
Existing provisions |
Compliance allowed till 31 March 2028 |
Businesses and professionals in Ghaziabad, Noida, Delhi NCR, and nearby areas seeking Company registration services near me, Income tax services near me, GST services near me, Trade Mark consultant near me, or logo registration consultant near me should also remain updated on MCA compliance developments because corporate governance requirements continue to evolve.
Step-by-Step Compliance Process
1. Verify whether the organisation is recognised or intends to apply as a Registered Valuer Organisation.
2. Review the current paid-up share capital.
3. If below ₹25 lakh, initiate the process for increasing paid-up capital.
4. Ensure the company's objects satisfy Rule 12 requirements.
5. Verify that the bye-laws comply with Annexure III.
6. Existing RVOs should complete compliance before 31 March 2028.
7. Maintain documentation demonstrating compliance with the amended Rules.
Legal Reference
Section
Exercise of powers under Section 247 read with Sections 458, 459 and 469 of the Companies Act, 2013 as invoked in the notification.
Rule
Amendment to Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017.
Notification
G.S.R. 432(E) dated 1 June 2026
Companies (Registered Valuers and Valuation) Amendment Rules, 2026.
Official Source Links
Legal Position
The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 revise Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 to prescribe the eligibility conditions for recognition as a Registered Valuer Organisation (RVO).
The revised clause requires that an applicant must be:
· A company registered as a Section 25 company under the Companies Act, 1956 or as a Section 8 company under the Companies Act, 2013.
· Have a minimum paid-up share capital of ₹25 lakh.
· Have the sole object of regulating or overseeing valuers for one or more asset classes.
· Have bye-laws complying with the requirements specified in Annexure III.
The amendment was notified through G.S.R. 432(E) and became effective from 1 June 2026, being the date of publication in the Official Gazette.
The amendment does not create or modify any Form 25. The amendment is confined to Rule 12 concerning the eligibility requirements for Registered Valuer Organisations.
The ₹25 lakh paid-up share capital requirement applies to companies seeking recognition as Registered Valuer Organisations under Rule 12.
Professional institutes established under statute and societies or trusts that satisfy the existing eligibility conditions continue to remain separate eligibility routes under the Companies (Registered Valuers and Valuation) Rules, 2017 wherever applicable.
Existing Registered Valuer Organisations that did not satisfy the ₹25 lakh paid-up share capital requirement on 1 June 2026 have been granted a transition period up to 31 March 2028 to comply with the amended requirement.
The claim is verified. The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 (G.S.R. 432(E)) require Registered Valuer Organisations to maintain a minimum paid-up share capital of ₹25 lakh, with existing RVOs permitted time until 31 March 2028 to achieve compliance.
Frequently Asked Questions (FAQs)
1. What is the major amendment notified by MCA?
The amendment requires eligible company-based Registered Valuer Organisations to maintain a minimum paid-up share capital of ₹25 lakh.
2. From when is the amendment applicable?
The amendment became effective on 1 June 2026.
3. Do existing RVOs receive any relaxation?
Yes. Existing Registered Valuer Organisations have time until 31 March 2028 to comply with the revised paid-up capital requirement.
4. Has any Form 25 been introduced?
No. The amendment does not introduce or modify any Form 25.
5. Which rule has been amended?
Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017.
6. Does the amendment apply across India?
Yes. The Companies Act and the Companies (Registered Valuers and Valuation) Rules apply uniformly across India.
Conclusion
The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 represent an important compliance update for Registered Valuer Organisations. By prescribing a minimum paid-up share capital of ₹25 lakh and providing a reasonable transition period until 31 March 2028 for existing organisations, the MCA seeks to strengthen the institutional framework governing valuation professionals.
If you are located in Ghaziabad, Noida, Delhi NCR, Vaishali (201019), Indirapuram (201014), Vasundhara (201012), or nearby areas and are searching for Tax consultant near me, Income tax consultant near me, GST consultant near me, Company registration services near me, or Trade Mark services near me, staying informed about such MCA amendments can help ensure timely compliance.
For expert guidance on this topic, contact your tax professional today.
Disclaimer
This content is for educational and knowledge purposes only. For verification and applicability to your case, please consult your tax professional.
Have Questions? We're Here to Help
Get expert advice from AMIT SIDDHI AND ASSOCIATES. Reach out to discuss your requirements.