A registered office is a physical location that is designated as the official address of a company. This office is responsible for receiving official communication from government authorities and banks. According to the Companies Act, 2013, it is mandatory for every company to have a functional registered office within 30 days of its incorporation. The registered office address is also publicly available on the Ministry of Corporate Affairs (MCA) portal. Because of this all communications and notices are addressed to the registered office of the company. For Online company registration, you need to provide registered office details for your to-be company.
Why is Registered office important for a company?
Having a registered office is crucial for several reasons. Firstly, it is a legal requirement for every company to have a registered office. Every company has to share the details with the Registrar of Companies (ROC). This ensures that the company is aware of any legal or compliance matters that need to be addressed. Secondly, the registered office address determines the domicile of the company. For example, if a company’s registered office is in Mumbai, its domicile in Maharashtra. It does not matter if the company carries out the majority of its activities in a different state. This is important as it determines the jurisdiction under which the company will be governed.
In 2022, the Companies (Incorporation) Third Amendment Rules, 2022 introduced Rule 25B. This made having a functional registered office an absolute necessity. The ROC now conducts physical verification of registered offices by inspecting the office with two witnesses. If the ROC finds that a company’s registered office is non-functional, the ROC shall directly send a notice to the company stating its intention to remove the name of the company from the Register of companies.
Where to add information about the Registered Office of the company?
It is important to clearly mention the name and address of the registered office of a company outside each of its offices. You have to state it on the banner of the company or anywhere else on the outside of the company. But it should be legible, in a language that the people of the locality understand. You must place it in a location that the general public can see. All official publications of the company have the registered address of the company. This includes letterheads, and official communications of the company. If the company has a common seal, the registered address should be specified in it. Failure to comply with these requirements may result in a penalty of Rs. 1000 per day with a maximum penalty amount of 1 lakh.
Changing a company’s registered office
As a company grows, there may be a need to change the registered office address. The shift can be within the city, outside the city but in the same state, or sometimes the company might want to change the registered office from one state to another. It is important to note that the change of registered office address may also require the company to update its PAN and TAN with the Income Tax Department. Changing a company’s registered office can be a complex process that requires attention to detail and adherence to state laws and regulations. It is important to research and understand the specific laws and regulations in the state where the company is incorporated, including the forms that need to be filled out and the fees that will be required.
Steps for Changing a company’s registered office
- The first step is to notify the appropriate government agencies of the change, typically by filing a form with the state’s Secretary of State or Department of Corporations.
- The next step is to file the appropriate forms, which will vary depending on the state. It is also important to obtain consent from the board of directors before making any changes. After establishing the new registered office, it is essential to update the company’s records to reflect the change, including updating the company’s articles of incorporation and any other official documents that list the registered office address.
- It is also important to notify business partners and stakeholders of the change, so they can update their records accordingly. This includes customers, vendors, and suppliers, as well as any other parties with whom the company does business. It is also important to update the business address on all official documents. This includes the company website, business cards, letterheads and all its other official documents which mention the company address.
Changing a company’s registered office can have significant legal and financial implications, so it is always a good idea to seek legal advice from an attorney or accountant who is familiar with the laws and regulations in the state. It is also important to ensure that the new registered office is an appropriate location for the company’s business activities. It should be a physical location where the company can receive mail and one can serve legal documents to the company.
Conclusion
In conclusion, a registered office is a crucial aspect of a company’s legal and financial operations. It serves as the official address of a company. It received all its legal documents there, such as official correspondence and service of process. A company’s registered office is also used for official government communications. It is the point of contact for shareholders and other stakeholders. It is also a key element for the compliance and legal requirements necessary for a company to operate. Therefore, it is essential for companies to ensure that their registered office is kept up-to-date. Companies must ensure that it’s an appropriate location for their business activities. Failure to maintain an accurate and appropriate registered office can lead to legal and financial consequences.