Currently, the word ‘compliance’ is used everywhere. Compliance means that a company follows the applicable rules and laws. No one suffers when compliance is done correctly. But when it isn’t done correctly, you have to be prepared to pay hefty a penalty for non-compliance. That means, it takes less time to do things right than to explain why you did it wrong. So, here I am talking about what should be mentioned on the board of the company as per the company law and rules made there under.
Provisions of Section 12(3)(a) of Companies Act,2013:
Every company shall paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages.
Also some details need to be painted or affixed outside of every office or place in which its business is carried on as per Goods and Service rules.
(Note: In English and one local language)
For Example:
ABC PRIVATE LIMITED
Registered Office: __________________________________
Contact No. ______________ Fax No. ____________________
Email: ____________________ Website: ____________________
GST No. _________________________________________
Penalty for Non-Compliance of Section 12 under Companies Act 2013: Section 12(8) of Companies Act, 2013: If any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.
Link of one of ROC’s Order for Non-Compliance of Section 12(3)(a) for your ready reference https://www.mca.gov.in/bin/dms/getdocument?mds=H0AHbeuMWcApaavkRrX5aQ%253D%253D&type=open
Conclusion: Though there is no particular legal format of a board painted or affixed outside the company’s office, so you can design as per your choice, but you should mention all the details as per legal provisions. By these small things you can save your company and directors from hefty penalties. The legal system and process are the main pillars of your business. The legal system and process will assure you how well your business functions. If you follow it consistently, it will deliver you the desired results. Otherwise, when you actually settle down your business, you will not be able to focus on growing your business further and suffer with legal issues.
Disclaimer: This article is based on the relevant provisions and to the best of my knowledge at the time of preparation of this article and moreover in no event author shall be liable for any direct and indirect result from this article and this is only a knowledge sharing initiative provided solely for information, this article is not a professional advice or recommendation.
Author: CS JINAL SHAH, JINAL SHAH & CO. Company Secretary in Practice from Surat, Gujarat and for any query feel free to contact me on [email protected] or 9173610133.
