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Search Report are the basic tool in the hands of the Banks to know about the viability of their customer who approach the banks for CC Limits, Term Loans or otherwise. As the sole moto of the Banks is to provide the loan to the customers is for earning the interest. Hence the Banks want the current position of the assets being pledged by the companies. And the only way to know whether such property is already pledged to some other bank or not, is the Search Report. In such search reports, the Professional gives the complete information about the loans already taken by the company. The basic information given in Search Report about the existing Loans is as follows:
Shareholders may also demand the Search Repot of the company for the following reasons:
An individual before becoming the Director of the company may get the Search Report prepared from Professional
Before entering into any agreement/ contract with the company, the suppliers or the Customers get the Search Report drafted.
Government Authorities like Income TAX Authorities, RBI, SEBI ETC. can also get the Search Report drafted to know the present status of the company and various other financial filed by the company to the concerned Registrar of Companies.
We have to pay fees of Rs 100 through generation of challan from MCA site in view public document option. After payment of fees, the documents of the company shall be available in “My Documents” option of MCA site and you can view the documents of the company and take copies for a total duration not exceeding 3, three hours and within 7, seven days. So on the basis of the information available on site we can prepare the search report.
If we feel that all the documents filed by the company are not available on site of MCA we can approach in person to ROC with fees paid challan who shall allow you physical inspection of documents filed by the company from where we can note down the required details. The challan for public inspection should be in the name of the person who shall visit ROC office or shall have an authority letter with him in case the challan is in the name of company or any other entity. It shall be noted that notes should be taken with pencils as pen is not allowed to take notes.
Now a day, Banks are more emphasizing on demanding Search Repots from Companies while opening of Bank Accounts or giving the Loan to Companies. The need for Search Reports arises to keep themselves (Banks) safe and to ensure that the company is not defaulting one or not having defaulting directors and to know the complete history and information about the company.
Search report indicates clear title of property. A search report is usually prepared by an advocate, who after visiting the registrar's office and inspecting the property documents, issues a title certificate. A title certificate states whether the property is unencumbered and has a clear marketable title.
This is an important part of a loan process by Banks to the Companies. A search report is usually prepared and drafted by Professionals, who after visiting the registrar's office (Registrar of Companies) and inspecting the property documents, issues the certificate to the Bank stating the facts about the company.
A title search is a must before making any real estate purchase. Title search esensure that the seller has the legal right to sell the property, and that there are no other encumbrances (such as liens, mortgages etc.) or property line issues that could prevent the buyer from taking full possession.