The document filed by the Company and the register maintained by the ROC (Registrar of Companies) can be inspected by the public after remitting the prescribed fee. The ROC provides the following details to the public: certificate of incorporation, address of the Company, details of directors, registered capital, nature of the business, accounts of the Company, shareholders details etc. there is also an option to demand a reliable ROC search report from the registered ROC authorities.
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What is a ROC search report?
A practising CA, CS or Advocate carries an inspection of the documents or records of a company. The ROC maintains the papers of a company. The report submitted after the inspection of the company documents is known as the ROC search report (“search report”). The stakeholders of the Company and banks that are connected with the Company can get access to the details of the Company through the report.
Inspection of the records is a crucial procedure to be followed by stakeholders of financial institutions. The report following the inspection will allow the stakeholders to decide on investment, loan advances, and management and enter into a contract with the Company.
The search report should be submitted to the banks while availing of loans. The loan is granted based on the information. This report proves the Company’s authenticity.
Contents of a search report
The following information about a corporation is included in the search report:
- Name of the Company
- Date of incorporation
- CIN of the Company
- The capital structure of the Company
- Registered office
- List of Registered Charges
- Details of the company directors
- Details of shareholders
Process of preparing ROC search report
Preparing a search report involves the following procedure:
- Collecting Information: The first step requires collecting critical information about the Company. Information such as the name of the Company, its registration number and the date of incorporation.
- Searching the ROC Database: The information gathered in step 1 is used to locate the respective Company’s records in the ROC database. The ROC database can be accessed through the Ministry of Corporate Affairs website’s official website or a professional service provider.
- Collection and Review of the Data: The information is checked for accuracy and completeness after collecting the data from the ROC database.
- Preparation of the Report: The collected data containing the Company’s relevant information is used to prepare the ROC search report.
- Approval and Review: The respective authorities or professional service providers approve the report after reviewing it. The authorities ensure the accuracy and completeness of the information.
- Delivering the report: After completing all the procedures, the information is forwarded to the client in the requested format(s) (either electronically or physically copied).
The process of getting the ROC search report may vary according to the rules and regulations in India. Consult a professional service provider and update yourself.
Uses of a search report
The various purposes of the ROC search report are as follows:
- Credit Risk Analysis: The search report is accessed by banks and financial institutions to acknowledge the creditworthiness of the Company before providing a loan or line of credit.
- Due Diligence: In business, it is crucial to know the Company’s background and financial status. The ROC report will provide all the necessary information needed to see the authenticity of the Company. Details like the financial stability of the Company and its compliance with Indian laws and regulations can be gained from the Search report.
- Acquisitions and Mergers: When a company wants to join or acquire another Company, they check the ROC to know the target company’s financial and legal status.
- Legal and Compliance: The ROC search report works as a tool to understand a company’s legal status for the lawyers and compliance officers.
- Business Research: The report provides valuable market research and competitive analysis details.
- Investment decision: Investors can go through the ROC search report to confirm their decision about their investment.
- Employee background check: The details of the candidate provided during the process of recruitment can also be verified through the ROC search report.
The laws and regulations are always dynamic. The procedures and uses may be updated from time to time. Get an update on the recent changes from professional service providers.
The ROC search report serves multiple purposes. It can be a crucial tool for investors and other people who want to be involved with the Company. Individuals who wish to conduct the Company’s due diligence may process the ROC search report.