No Objection Certificate Format for Private Company Registration

What is a No-Objection Certificate?

A No Objection Certificate (NOC) is a legally binding document issued by one party to another, granting authorization for a specific action to occur. For the purpose of the private company, a NOC is used for a number of reasons, including:

• Trade
• Employment
• Litigation
• Immigration
• Purposes to repeal the party's objection

In the case of company registration, the NOC is an official legal permission granted by the landlord to the entity, allowing it to use his/her premises as a registered business office of that company.

---

What is the Purpose of NOC for Private Company Registration?

A No Objection Certificate (NOC) is required for private company registration in India to ensure that the owner of the property has no objection to the company using the property as its registered office. This legally binding document is issued by the property owner and is a mandatory submission to the Registrar of Companies (RoC) along with other requisite documents during the company registration process.

The significance of the NOC lies in its dual protection. It safeguards the interests of the property owner by granting permission for property usage without relinquishing property rights. If the company defaults on its lease terms or breaches the NOC conditions, the property owner retains the ability to pursue legal recourse.

Conversely, the NOC serves as a crucial assurance for the company. It solidifies the company's legal entitlement to employ the property as its official registered office. This designation is pivotal, as the registered office serves as the company's official address for various functions, including legal correspondence and process service.

In summary, the NOC, though a simple document, carries substantial importance in safeguarding the interests of both the property owner and the company itself.

---

What is the Importance of a No Objection Certificate?

A No Objection Certificate (NOC) serves as a legally binding document issued by one party to another, granting authorization for specific actions to proceed. In the context of a private company, a NOC holds significant importance for several reasons:

• Establishment of the Company's Registered Office: The registered office stands as the official address of the company, serving various purposes, including the receipt of legal documents and process serving. Securing an NOC from the property owner is imperative to establish the company's registered office.
• Change in the Company's Registered Office: When the company decides to relocate its registered office, obtaining a fresh NOC from the property owner at the new location becomes a necessity.
• Facilitation of Borrowing: Financial institutions, such as banks and other lending entities, frequently mandate a NOC from the company's shareholders before extending loans. This prerequisite ensures that shareholders do not oppose the company's decision to take on debt.
• Asset Sales Authorization: The consent of the company's shareholders may be required prior to any sale of assets. This measure ensures that the shareholders are safeguarded from potential disadvantages resulting from asset sales.
• Merger and Acquisition Approvals: In scenarios involving mergers or acquisitions, the consent of shareholders from both companies may be essential. This step ensures that all parties involved are well-informed about the transaction and mutually agree to its execution.

Moreover, a NOC can also function as evidence that the company has obtained approval from all pertinent parties for a particular course of action. This proactive approach aids in sidestepping legal complications and underscores the company's commitment to operating within the bounds of legality.

---

What is an Objection Certificate Format for Private Company Registration in India?

The format of the No Objection Certificate (NOC) for private company registration may vary depending on the jurisdiction. Generally, it includes the following information:

• The name and address of the property owner.
• The name and address of the company that is requesting the NOC.
• The address of the property that is being used as the company's registered office.
• The date on which the NOC is being issued.
• The signature of the property owner.
• The seal of the property owner.

The NOC should also be specific about the action that is being permitted. For example, the NOC may state that the property owner has no objection to the company using the property as its registered office for a period of one year.

The NOC must be in writing, and it must be signed by the property owner. It is also advisable to have the NOC notarized by a public notary. This will help to ensure that the NOC is valid and that it will be accepted by the Registrar of Companies (RoC).

Here is a sample NOC format for private company registration:

---

What are the Documents Required While Submitting NOC for the Company Address?

While submitting the NOC for company address will also require you to submit the following details -

If the registered office of the company belongs to a third person, then it is mandatory to furnish a no-objection certificate from the owner of the registered email address. In addition to this, you can also submit the following documents as proof of registered address -

• Electricity Bill
• Gas Bill
• Telephone Bill
• Mobile Bill

If the registered office is changed, then a Form Inc-22 must be filed within 30 days to update the new address.

Validity of an NOC

The validity of an NOC varies for different property owners. It can be valid for any period of time. Generally, the validity of an NOC is mentioned within the NOC document. Generally, an NOC is issued for a minimum of 1 year. Upon completion of the validity period, the property owner and the company representatives can mutually agree on the T&Cs and renew the NOC further.

---

How to Submit NOC for Company Address?

An NOC includes details like the name of the property owner, company name, and property address. Therefore, it acts as proof of a registered office address.

If you are using the SPICe+ form for company registration for company registration -

• Upload the NOC and the relevant documents in the field “proof of office address’ as attachments.
• Visit the ‘Attachments’ section.
• Click on ‘attach’ next to the relevant category of the document.
• Upload the NOC along with other necessary documents.

If you are using FiLLP for LLP Registration -

Upload the NOC and the relevant documents in the field ‘Proof of office address’ as attachments.

Are you a entrepreneur looking to register your company? Before you go ahead and try to obtain company registration, make sure you obtain an NOC from the property owner of your registered office address, as it is a mandatory document that you need to submit while registering your company. Still, have queries or need assistance? Contact our tax experts!

---