What is E-form AOC 5?, Documents, Applicability Fees for E Form AOC 5

Introduction

A registered office serves as the company’s proof of address and is one of the most important elements for incorporation. Before launching a business in a rented location, it is usual for a startup to have a registered office at the promoter’s home. This allows the organization to maintain the same address even if the location of commercial activity changes depending on the necessity and cash outflow. As a result, the business’s actual location differs from the registered office address, where all of the company’s operations are carried out. In this article information on E-form AOC 5 applicability, and Documents required for E-form AOC 5 is mentioned.

What is E-form AOC 5?

Section 128 of the Companies Act, 2013 requires the filing of Form AOC-5, which serves as a notice of the place where a company’s books of account are kept. Within 7 days following the date of the Board Resolution, the Company must file e-form AOC-5 with the Registrar of Companies, together with the full address of the other location where the Company’s books of accounts will be kept.

Before going with the E form AOC 5 Applicability and other information, let’s have a quick look at Section 128 of the Companies Act, 2013.

Section 128 under the Companies Act, 2013

• Every company must prepare and keep books of account and other relevant books and papers, as well as financial statements, for each financial year that give a true and fair view of the company’s affairs at its registered office.

• The Company needs to keep records of its branch office or offices books of accounts, if any, and explain the transactions affected both at the registered office and its branches, and such books must be kept on an accrual basis and using the double entry system.

• However, that all or any of the aforementioned books of account and other relevant papers maybe kept at such other location in India as the Board of Directors may determine.

• If the Board of Directors take decision as discussed above, then the company shall file with the Registrar a notice in writing giving the full address of that other location within seven days.

Documents required for e form AOC 5

• The following information is required on Form AOC-5:

1. 1. CIN (Company Identification Number)

   2. The date of the Board Resolution deciding on the location where the books of account will be kept.

   3. The new location where the books of account will be kept.

   4. Information/details about the police station that has authority over the location where the books of account are to be kept.

• Because Form AOC-5 is in Non-STP (Straight Through Process) Mode, it will be accepted by the Registrar of Companies.

• The Company’s Director/Manager/CEO (Chief Executive Officer) /CFO (Chief Financial Officer) /Company Secretary is required to sign Form AOC-5 digitally.

• No professional qualification is required for Form AOC-5.

E Form AOC 5 Applicability Fees

The fee charged by the Registrar of Companies for the Form is determined by the company’s authorised capital, as shown below.

Penalty fees for e-form AOC 5 late filing 

Changes in the Section 128 under the Companies Act

Section 128 of the Companies Act of 2013 has been updated and revised with the Companies (Accounts) Rules of 2014. The following are the changes that have been made over time.

• All books of accounts, essential books and papers, as well as financial statements, must be kept in a company’s registered office.

• The books must be kept on an accrual basis and in compliance with the double-entry accounting method.

• The books can be kept in either a physical copy or electronic format.

• In the event of electronic records, the company is required to inform the Registrar of Companies of the name of its service provider, its IP Address and Location, and its Cloud Address annually at the time of filing the financial statement.

• The Board of Directors may opt to keep any or all of these accounting records in any other location inside India. In such circumstances, however, Form AOC-5 must be filed within seven days of the Board Resolution being passed, and the entire address of the new location of the books of account must be included.

• The books of account may be held at any branch of the firm, whether it is within or outside the country, as long as the summary returns are provided to the registered office on a regular basis.

• For a minimum of 8 years prior to the relevant year, books of accounts and vouchers must be kept in order.

Non-Compliance with E-form AOC 5

The Managing Director, Chief Financial Officer, Whole-Time Director, and others who are in control of the Company by the Board are responsible for adhering to the provisions of this Section. In the event of a violation, the individual would be subject to the following penalties.

• Punishable by imprisonment for a period of up to one year,

• A fine of not less than INR 50,000 but it should not be more than INR 5 Lakhs,

• Alternatively, Both can be apply based on the situation.

Conclusion

The Company’s Books of Accounts and other relevant records must be preserved for at least 8 financial years immediately preceding a financial year, or if the Company has been in existence for less than eight years, the Company must keep the books of accounts from the beginning. However, if an investigation is requested, the Company’s books of accounts must be retained for a longer amount of time as directed by the Central Government.