Companies Registered under the provisions of the companies Act, 1956 or Companies Act, 2013 can commence their business activities after obtaining a Registration certificate/ Incorporation of a company issued by Registrar of Companies or Central Registration Centre (CRC) as the case may be. Date of Incorporation as per Certificate of Incorporation is the date of birth of a company.
Apart from other compliances and approvals from various Government authorities, the company presents itself to the Corporate World through various communication methods. One such way of reaching out to corporate world is through a strong and good company letterhead which represents identity, philosophy and culture in invisible manner. The purpose of this article is to highlight essential contents which ought to be there on letterhead of every company for better company law compliance.
Section 12 (3)© of the Companies Act, 2013 mandates mention of following details on letterhead of company :
- Full name as per registration certificate
- Full address as per Registration certificate
- Corporate Identification Number (CIN) as per registration certificate
- Telephone Number, Fax Number, email address of company and website of company
Full name indicates full name with word Private Limited or Limited in full form and not in abbreviated form. If the company has changed its name, the new name should be mentioned on company letterhead and below such name into bracket (formerly known as ____ ) to be mentioned for three consecutive years from the year of change of name. Words like Foundation or Association to be mention in case of Non Profit Organizations. In case of one person Company, the word (OPC) to be mentioned specifically in the name of the company In case of a Government company, the words A Government of India Undertaking need to be mentioned specifically to indicate that Central or State Government is a stakeholder the company for the benefit and knowledge of general public.
Full address of registered office as per registration certificate to be mentioned clearly on every company letterhead. If there is a change in registered office, the latest one should be mentioned on every letterhead with effect from official change date as per records of the Registrar of Companies. Apart from mentioning registered office, company may mention branch office address, administrative office address as the case may be subject to company law compliances. Foreign companies registered in India need to take note of above and mention address on company letterhead to reflect registered office, branch office or administrative office address as the case may be.
Corporate Identification Number (CIN) as per registration certificate need to be mentioned mandatorily on every letterhead of company to indicate its identity. It is a 21 digit alpha numeric code issued to every company.
- The word U in CIN Number indicates Unlisted Company whereas the word L indicates Listed Entity. The word NPL in CIN Number indicate not for profit licence issued for a Section 8 company.
- Five figures mentioned in CIN indicate Industry or business activity presently carried out by company. If there is change in object of the company, these five figures mentioned in CIN Changes accordingly.
- Next two capital letters mentioned in CIN indicates state in which the company is registered. Example: MH for Maharashtra State.
- Next four figures in CIN Number indicate year of registration of a company.
- Next six number indicate unique registration number distinct from other companies for identification.
Consequences of not mentioning CIN Number on company letterhead results in a default in complying with the requirements of Section 12 (3) of the Companies Act, 2013, 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. Relevant case law in this matter in Re : OM SHYAMJI FOODS PRIVATE LIMITED.
Telephone Number, Fax Number, and email address of company and website of company should also be clearly mentioned on company letterhead for the benefit of stakeholders and Government authorities.
Apart from above mandatory requirements, companies may mention business activities of company in summarized form like manufacturers of rubber products, chemicals, importers or exporters as the case may which help companies to create goodwill in the market. Mention of ISO Certifications, Government accreditations if any shall add value to the letterhead of the company. Mention of registered trade mark, copyright and business logo on company letterhead if any will create confidence in the minds of general public.
Thus from the above, it can be summarized that a Company letterhead plays a vital role in corporate lifecycle of the company to create a brand and goodwill in the eyes of general public and stakeholders at large. Corporates will have to comply with the provisions of the Companies Act, 2013 as applicable in this regard to avoid penalties and as a matter of good corporate governance practices.
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Disclaimer: The Views expressed in this Article are based upon prevailing facts and Law to date and views expressed are purely personal in nature. Readers are advised to seek expert opinion before arriving at a decision. You may reach me at csdeepakamrutkar@gmail.com.
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