Companies Act Section 396

Companies Act, Section 396: Registration Offices

Section 396 of the Companies Act, 2013 lays down the provisions regarding the establishment and functioning of registration offices responsible for carrying out the various duties and powers conferred upon the Central Government under the Act. 

It ensures that there is an organized administrative framework to manage the registration and regulation of companies throughout India. 

The section also outlines the appointment, jurisdiction, powers, and service conditions of officials responsible for company registration and related functions. The provision can be elaborated as follows:

1. Establishment of Registration Offices

For the efficient exercise of the powers and discharge of the functions entrusted to the Central Government under the Companies Act, 2013, and the rules made thereunder, the Central Government is required to establish registration offices.

 These offices are to be created by way of a notification, which will specify:

The number of registration offices to be set up the places or locations where these offices will function, and the jurisdiction of each such office is the territorial or functional area within which each office shall have authority to operate.

The establishment of these offices is essential for ensuring the smooth administration of company registration processes and the implementation of statutory provisions throughout the country.

2. Appointment of Registrars and Other Officers

The Central Government holds the authority to appoint various categories of officers who will be responsible for the registration of companies and for carrying out other functions as prescribed under the Act. These officers include:

Registrars of Companies (ROC), Additional Registrars, Joint Registrars, Deputy Registrars, Assistant Registrars.

The appointment of these officials ensures that the tasks related to company registration, maintenance of records, filing of returns, and regulatory oversight are effectively managed.

The powers and duties of each category of these officers shall be prescribed by rules framed under the Act. 

This means the specific functions, responsibilities, and authority of these officers will be determined through detailed subordinate legislation, allowing flexibility and administrative clarity in their functioning.

3. Terms and Conditions of Service

All individuals appointed under subsection (2), including Registrars and other officers, shall serve on such terms and conditions as may be prescribed by the Central Government. This includes, but is not limited to:

Salaries and remuneration payable to such officers, allowances, benefits, service conditions, and any other terms relevant to their appointment and performance of duties.

By prescribing these conditions, the Central Government ensures uniformity, transparency, and fairness in the management of human resources involved in the registration and regulation of companies.

4. Official Seal for Authentication

The Central Government is also empowered to direct the preparation of a seal or multiple seals to be used for the authentication of documents connected with the registration and regulation of companies.

This seal serves as a symbol of authenticity and official approval, ensuring that documents issued or certified by the registration offices carry legal and administrative validity. 

It plays a critical role in confirming the genuineness of official records, certificates of incorporation, and other documents issued under the Companies Act.