The Registrar of Companies (ROC) operates under Section 609 of the Companies Act, 2013, overseeing company registrations across different states in India. Functioning under the Ministry of Corporate Affairs (MCA), each ROC maintains a database of registered companies within its jurisdiction. Businesses must periodically submit prescribed forms and documents to the respective ROC as per legal requirements.
The records maintained by the ROC, along with the documents filed by companies, are accessible for public inspection upon payment of a specified fee. These public records provide crucial company details such as the certificate of incorporation, registered address, director information, shareholding pattern, financial statements, and business activities.
What is an ROC Search Report?
An ROC Search Report is a detailed analysis prepared by practicing Chartered Accountants (CAs), Company Secretaries (CS), or Advocates after reviewing the records available with the ROC. This report acts as a valuable tool for stakeholders and financial institutions to assess a company’s legal and financial standing. Banks often request an ROC search report before granting loans to ensure that they are not dealing with a defaulting or legally disqualified entity. Investors, directors, and suppliers also rely on search reports to make informed decisions regarding partnerships or business dealings. For any queries, contact us.
How is an ROC Search Report Prepared?
The search report can be compiled in two ways:
- Physical Inspection at the ROC Office:
- The prescribed fee must be paid before visiting the ROC for document inspection.
- The inspecting individual must present a paid challan in their name or an authorization letter if the challan is issued in a company’s name.
- Pens are not allowed during the inspection—details can only be noted using a pencil.
- Online Inspection via the MCA Website:
- Fees are paid online through the MCA portal.
- Once payment is made, documents can be accessed under the “View Public Document” section.
- The documents remain accessible for one week, with a maximum continuous viewing time of three hours.
Key Uses of an ROC Search Report
- For Banks & Financial Institutions:
- Before approving a loan, banks assess the company’s history, existing debts, and financial stability using the search report.
- They verify whether any charges, mortgages, or hypothecations exist against company assets.
- For Shareholders & Investors:
- Helps determine the company’s financial health before making investment decisions.
- Provides transparency regarding share transfers and corporate activities.
- For Directors & Business Partners:
- Allows potential directors to evaluate a company’s assets, liabilities, and compliance status before assuming a leadership role.
- Suppliers and clients can review a company’s records before entering into contracts or agreements.
Frequently Asked Questions
1. Why do banks require an ROC search report?
Banks review ROC search reports to mitigate financial risks before granting loans. This ensures that the company and its directors are legally compliant and not involved in defaults or legal disputes.
2. Does an ROC search report include tax details?
Yes, the report may contain information about GST filings, income tax payments, director disqualification status, and ongoing legal proceedings.
3. How does an ROC search report benefit stakeholders?
Stakeholders use the report to assess a company’s credibility before making decisions related to investment, management, financing, and business partnerships.
4. What loan details are included in an ROC search report?
The report provides information on:
- Loan sanction date and associated charges.
- Names and addresses of charge holders (e.g., banks).
- Type of charge (joint or consortium).
- Loan amount and collateral pledged.
- Loan terms, including interest rates and repayment schedule.
5. Does an ROC search report include company charge details?
Yes, it provides insights into any existing or modified charges, including charge satisfaction when a loan is fully repaid, provided the company has filed Form CHG-4 with the ROC.
This ensures that banks and financial institutions have a clear picture of a company’s financial commitments before approving credit facilities.
