Keeping books of accounts other than registered office

Last updated: 09/05/2019 15:26:28

KEEPING BOOKS OF ACCOUNT, ETC. OTHER THAN THE REGISTERED OFFICE OF THE COMPANY

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Rule

Thumb Rule

Every company must keep its books of account, etc. at the registered office of the company.

Exception

Board of directors had the power to keep books of account, etc. at a place other than the registered office of the company.

Steps

The following steps should be followed for changing the place of books of account:

Step 1- Board of directors must hold Board Meeting (BM)

Step 2 – In BM, the board resolution must be passed for changing the place of books of accounts (other than registered office) and must be approved.

Step 3 – Must intimate to Registrar of companies (ROC) within seven days of the board meeting (File form AOC-5)

Step 4 – Board of directors of the company must always keep books of account, etc. open during the business hours for inspection.

Points to be remembered:

All papers should be open for inspection which are maintained by the company within India at the registered office of the company.
For maximum 8 years, the books of account must be kept in record by the company. (except in the case of investigation)
If provisions have not complied, then every person in charge will be liable for imprisonment up to 1 year or with a fine of minimum₹ 50000 to maximum ₹ 500000 or both.