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INTRODUCTION:

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 letterhead of the company as per the company law and rules made there under.

PROVISION AS PER COMPANIES ACT:

Section 12(3)(C) of Companies Act,2013:

Letterhead Format

Every company shall get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications.

  • Name
  • Address of its registered office
  • Corporate Identity Number
  • Telephone number
  • Fax number (If any)
  • Email
  • website addresses (if any)

For Example:

AXY TRADERS PRIVATE LIMITED

CIN:______________________

Registered Office: __________________________________

Contact No. ______________ Fax No. ____________________

Email: ____________________ Website: ____________________

Where a company has changed its name or names during the last two years, it shall paint or affix or print, as the case may be, along with its name, the former name or names so changed during the last two years.

For Example:

AXY TRADERS PRIVATE LIMITED

Formerly Known as AXY Textile Private Limited

Also, the words “One Person Company’’ shall be mentioned in brackets below the name of OPC company, wherever its name is printed, affixed or engraved.

For Example:

AXY TRADERS (OPC) PRIVATE LIMITED

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)(c) for your ready reference  https://www.mca.gov.in/Ministry/pdf/ROCAdjOrderEGO_14122020.PDF

CONCLUSION:

Though there is no particular legal format of a letterhead, 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.

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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 jinalshahco@gmail.com or 9173610133.

Author Bio

I am Jinal Shah, Surat based Practicing Company Secretary, a member of ICSI since 2018. Founder of JINAL SHAH & CO. (Compliance Partner for YOUR BUSINESS) View Full Profile

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