Company Registration VPP Scam in India!! – Beware
During incorporation of a private limited company or registration of a LLP, details relating to the directors/promoters of the company or Limited Liability Partnership (LLP) are available in public domain by the Ministry of Corporate Affairs(MCA). Scammers obtain this information from the MCA and take advantage of this and con startups with their money. One of our client recently faced this,immediately after Incorporating a Private Limited Company, our client received a VPP (Value Payable Post) of Rs.2,750/- . VPP is like post-paid on delivery of goods (Cash on delivery). Our client never ordered anything after Company Incorporation, neither did he transact with any person at all & thankfully he denied that parcel.
So, What is this scam all about?
On incorporation of a private limited company or LLP, the various basic details relating to the promoters/directors/shareholders of the company are available to the general public through MCA website. Scammers use this information to send a VPP Post containing books, periodicals, company law rules or acts, which are public resources and available for download for free from MCA website itself, that are not requested by the promoters of the business.They label these parcels in such a way as to give an impression that the material has been sent by MCA. Entrepreneurs end up paying for these and unduly and accepting the packages.
Things which should remember by Entrepreneurs
- Those involved in the incorporation of a private limited company or LLP must always remember that the MCA never sends any information through post. Therefore, it is important for anyone starting or managing a company to accept only those post that they have ordered.
- MCA does not provide any certificate/document in hard copy except notices.
- Lastly, no parcel sent by MCA or any other Govt agency would EVER be chargeable. If department ever sends you a communication, it will send you either by way of registered post/speed post/normal post or through normal post.
PLEASE DON’T FALL PREY TO SUCH INSTANCES. It is another matter of abuse of public document (i.e. Company details). Please make your Co-entrepreneurs/ network aware & not to pay for what they have not ordered only because its the first communication with the Company.
Feel free to comment for any query!