ROC SEARCH REPORT
What is a Search Report?
Search Report Means, if someone (generally Bank) wants to traces the history/title of a property usually owned by a company conducts a search and search report provides details of charge holders and hypothecation/pledge/mortgage created to a particular property.
Entities registered under companies act, 2013 i.e. companies, and wants financial facilities from Bank than a search report is required by the bank. The basic purpose of banks behind requirement of a search report is to safeguard itself from a defaulting/Fraudulent company.
Search Report is prepared by :-
- Charatered Accountant
- Company Secretary
Under The Companies Act, 2013, a company is required to file various forms/returns time to time with Registrar of Companies (hereinafter referred to as the “registrar”).
Preparation of Search Report :-
- First step to prepare search report, these professionals inspect the documents available on the MCA’s portal or at registrar.
- Before doing the inspection, nominal fees has to be paid via MCA’s portal and then inspector can inspect the documents either online on MCA’s portal or physically at registrar.
- If inspector doing physically inspection of documents than he/she shall have to visit regional registrar with the challan paid for fees.
- Challan must be in the name of the person who is going to visit registrar or shall have an authority letter with him/her if challan is paid in the name of company.
- At the time of inspection at registrar only pencil is allowed to note down the details.
Following documents may be inspected by the professional during the inspection either online or physically at registrar :-
- INC-13 (Memorandum of Association)
- INC-11 (Certificate of Incorporation)
- MGT-1 (Register of members)
- MGT-7 (Annual Return)
- CHG-1 (Application for registration of creation, modification of charge)
- CHG-2 (Certificate of Registration of Charge)
- CHG-3 (Certificate of Registration modification of Charge)
- CHG-4 (Particulars of Satisfaction of Charge)
- CHG-7 (Register of Charges)
- Index of Charge on MCA’s Portal
- Sanction of Letters of existing loans and limits.
Following is the inclusive list of basic information which is justifiable to incorporate according to basic requirements of a search report
i) Name of Company
ii) CIN of the Company
iii) Registered Office of the Company
iv) Date of Incorporation
v) Authorized Share Capital
vi) Subscribed Share Capital
vii) Paid-up Share Capital
viii) Subscribers to Memorandum
ix) Directors of the Company
x) Shareholding Pattern of Company
i) Assets hypothecated/Pledged/Mortgaged,
ii) Name and Address of the Charge Holders i.e. usually a Financial Institution,
iii) Date of Creation/Modification/Satisfaction of Charge,
iv)Charge Identification No.,
v) Amount of loan and Charge on Assets,
vi)Terms and conditions of Loans:
a) Rate of Interest on loan
b) Terms of Repayment (On demand, Term Loan, etc.)
vii) Modification, if any, and reasons of modification,
viii) Charge Satisfaction,
ix) Any Default committed by Borrower,
x) Other Matters as may be required by prospective stakeholders.
As per Companies Act, 2013, there is no particular format for search report. So it may differ according to the professional and stakeholders (i.e. Banks, NBFC’s, debenture trustee etc.)
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