What is a No Objection Certificate?

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What is a No Objection Certificate?

A No Objection Certificate (NOC) is a crucial legal document that is issued by an agency, institution, company or an individual. This certificate is a requirement at most government-based departments in India.

In this article, we will have an in-depth understanding about what is No Objection Certificate (NOC), and its different types.

Understanding what an NOC is

An NOC is a legal certificate issued by an individual, agency, company or institution. Basically, the purpose of NOC is to state that the party issuing the document has no objection to the details specified in the document. Being a legal document, it can be presented in the court of law in case of any legal disputes. 

What are the Different Types of NOCs?

There are various types of NOCs in India such as:

• NOC for Company Registration
• NOC for Renting Property
• NOC for Closure of Loan Account
• NOC for Property Transfer
• NOC for Building Construction
• NOC for Court Purposes
• NOC for Visa for Employees/Students
• NOC for Re-registration of Vehicle in Another State

Why do I need an NOC?

NOC is an essential legal document which establishes that there isn’t any objection. Further, this document can be presented in the court of law and can be used to prove your innocence, if you happen to be caught in a legal tangle. For example, obtaining an NOC from your bank or NBFC, once the home loan is repaid, will allow you to collect all the legal documents of the property without any complications.

Additionally, an NOC is also helpful for getting a lien on property removed. A lien on property means that a bank or NBFC or any lending institution has a legal claim over your property and the right to sell it until you pay off the debts. 

NOC for Company Registration

An NOC or Consent Letter for is a mandatory document for company registration since it proves that the property owner has granted permission for the company to operate the business from their premises. The NOC shows that the landlord has no objection to renting the premises to a company. When applying for company registration, the NOC from the landlord must be submitted to the Registrar of Companies (ROC).

NOC from Legal Heirs for Property Transfer in India 

The individuals who are legal heirs must know the procedure for obtaining ownership of a property after the demise of a person in whose name it is registered. The process is easy while in the presence of a valid will. However, if a property was inherited instead of being self-acquired, the will can be challenged. 

In the will’s absence, the succession law comes into play. An NOC from other legal heirs along with an affidavit is one of the most crucial documents that are necessary for property transfer. If an individual has paid any consideration, in kind or cash, to any heir/claimant for acquiring their share, the same must be mentioned in the transfer papers. Additionally, an individual needs to register the release deed for the share’s transfer.

NOC for Building Construction

Before constructing a building, it is necessary to obtain an NOC from various government authorities and departments. High-rise buildings and apartments require NOC from the Fire Department. Once the building plan is reviewed and gets approval of the sanctioning authority for construction of the building, an NOC is issued by the Chief Fire Officer.

NOC for Closure of Loan Amount

When an individual opts for a home loan or vehicle loan, it is extremely crucial for them to obtain an NOC from the Bank/NBFC on the loan account’s closure. An NOC from the Bank/NBFC completes all the required loan closure formalities. An NOC concerned with the loan amount’s closure showcases that the borrower has paid all the loan EMIs and settled any outstanding loan dues.

NOC for Court Purposes

Since the NOC is an official and legal document, it serves as a favorable testimony by one individual or entity in favor of another. If there are any legal disputes regarding a property at the time of selling, an NOC can be presented. However, if there is no NOC, the property cannot be sold (unless the state has a nominee system or the probate of will has been done). The NOC document has a legal standing in the court of law and can be granted by an individual or an entity for a variety of reasons.

NOC for Visa for Employees/Students

Getting a visa to visit another country, whether to work or to study, is never a piece of cake. You are required to go through procedures and obtain all the required documents, no matter how many times you apply for a visa. On many visa requirements checklists, you might observe that a “No Objection Letter/Certificate” is one of the requirements. 

An NOC for a visa is a legal certificate issued by an agency, institute, company, organization or a university to their employee or student, which states that the entity agrees for the visa candidate to take off the days for which he or she has applied for a visa. Moreover, the NOC letter states that the visa candidate has contractual obligations to return back to their workplace or university in the country of residence. Without obtaining an NOC, your visa application might get rejected.

NOC for Renting Property

NOC for renting property is issued by the landowner to an individual or company, which states that the landowner has no objection to giving the property on rent to the individual or company, as the case may be. Nowadays, many property-related scams have been taking place. So, it is necessary for the tenants/business owners to ensure that they have all the necessary documents before they rent the property. 

NOC for Re-registration of Vehicle in Another State

Buying a vehicle is expensive, and many people have to take loans to purchase them. When you relocate to a different state, you wouldn’t want to leave your precious vehicle behind. However, to transfer your vehicle to another state, there are some legal requirements which need to be fulfilled. NOC is the most basic legal requirement in this case, and is issued by the Regional Transport Office (RTO) for the re-registration of a vehicle from one state to another state. 

The NOC certifies that there are no tax dues on your vehicle. However, for taking your vehicle for the purpose of traveling to another state for a period which is less than 3 months, NOC is not required. As a general rule for the NOC in this case, the validity period is 6 months. If the NOC reaches expiry date, you won’t be able to produce the same for re-registering.

Conclusion

The No-Objection Certificate is an essential legal document which can be issued by an individual (landowner/employer), institution, university, etc. This document clears any discrepancies, should it arise in the future, regarding loan repayment, building construction, company registration and so on. 

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