Full-Form of ROC – Registrar of Company
ROC’s full form is the Registrar of Companies. Registrar of Companies can be defined as the public authority that is registered under the Ministry of Corporate Affairs, which plays a significant role in the administration of different companies and the LLPs (Limited Liability Partnerships) in India and under the administrative control of the Central Government of the country.
- As per section 609 of the Companies Act, 1956, the ROC’s principal duty is to register the companies and the LLPs (Limited Liability Partnerships) in India. No company can commence its business without getting a Certificate of Incorporation by the Registrar of companies. It maintains the registry of records with the details of the companies registered with ROC and the payment of the stipulated fees; it also allows the general public to access this information. It plays an important and very much required role in fostering and facilitating the business culture.
- The registrar’s role does not end after completing the registration process, and the same continues with the working of the companies or LLPs. This is so because whenever there are any changes required by the companies such as change of the name, its objectives, registered place of business, etc., then such changes can be done only after intimating the ROC once all the formalities are completed.
How Are Companies Registered with ROC?
- The principal duty is to register the companies as well as the LLPs (Limited Liability Partnerships) in India across all its states and different union territories. The companies have to register themselves with the ROC for their existence by getting the ROC certificate.
- For the certificate of incorporation, the promoters of the company or LLP, as the case may be, are required to need to submit the necessary documents with the Registrar of Companies where the required documents include Articles of AssociationArticles Of AssociationArticles of association is a legally binding document that states the corporate rules, regulations, and purpose. It serves as a user's guide for executing the organizational tasks, directors' appointment and recording the financial information., Memorandum of Association, and the pre-incorporation agreement, which was made for appointing the directors or the managing directors of the company. Along with these documents, a declaration is also required to be submitted where there is confirmation by the authorized person confirming that all the requirements related to the registration have been complied with.
- Once the promoter submits all the documents, the ROC with authenticate the documents, and if found satisfactory, it will inputs the name of the company in the register of companies along with releasing certificate of incorporation and the certificate of the commencement of business in the name of the company. The public limited company requires the certificate of the commencement of business before its business commencement.
The different functions are as follows:
- The main function is to register the companies as the person before incorporating a company requires a certificate of incorporation, which is issued by ROC.
- Registrar of Company is the body that completes all the company’s regulations and reporting, which also includes reporting of their shareholders, directors, etc.
- Every company has to file their financial documents and relevant documents with the ROC annually or within the time limit as may be prescribed, and non-compliance of such filing of documents may result in a huge amount of penalty and other punishments as prescribed in the Act.
- The ROC has the authority to ask for the relevant information from the companies and may search the company’s premises and, with the permission of the court, i.e., after obtaining the order from a special court,ROC can seize books of accounts and papers of the company.
- Also, the company’s winding-up petition can be filed by the ROC if it is satisfied that it is in the public interest that the company is to be wound up.
The various requirements are explained as below:
- Companies such as public companies, private companies, a small company or one-person companies, etc., are required to file their annual financial statementsAnnual Financial StatementsAnnual Financial Statements refers to the annual presentation of the entity's financial performance comprising a Balance Sheet, statement of profit and loss, statement of changes in equity, cash flow statement, and notes to the financial statements. It provides information to the stakeholders for making financial decisions about the business. with the ROC. It has the role to keep a check on such financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels..
- ROC is required to give the certificate of incorporation and certificate of business commencement to the companies after receiving relevant information and documents about the objects and place of business and the details about the directors etc.
- It is also required to issue the certificate of registration of the charges without such certificate, the creditors and the liquidators cannot take charge into consideration.
- Registrar of Company is also responsible for removing the companies that have winded up their business and are not in existence.
- The scope of the Registrar of Companies is limited to the companies and the LLPs (Limited Liability Partnerships) in India. ROC’s primary duty is registering the companies that are incorporated in respective States or Union Territories; however, there are several other responsibilities as well of the company’s registrar.
- There are several powers granted to the Registrar of companies to the registration of Companies such as Power to calling for information, power of Search and Seizure, power of removing or changing the name of the companies from the register of Companies, etc. The removal of the names of the companies that have winded up their business and is not in existence is also under the registrar of companies’ scopeConclusion
Thus, the Registrar of companies plays an important role in the administration of the companies and the LLPs in India. It is required to give the certificate of incorporation as well as a certificate of commencement of business to the companies after receiving relevant documents from the companies. Also, all the types of companies in existence must file their annual financial statements with the ROC, which keeps a check on such financial statements. So, the Registrar of Companies has been given a large number of duties by provisions of the Companies Act, 2013.
This has been a guide to the Full Form of ROC. Here we discuss the role, functions, requirement, and how companies are registered with the registrar of the company. You may refer to the following articles to learn more about finance –