Company Compliance

Ensuring Seamless Company Compliance in India with Korrectax

Annual compliances are the cornerstone of robust corporate governance for every company registered in India. Adhering to these statutory requirements is not just a legal obligation but crucial for maintaining your company's good standing, avoiding penalties, and fostering investor confidence. Korrectax provides expert guidance to navigate the complexities of these annual compliances, ensuring your business remains fully compliant.

Key Annual Compliances for Indian Companies:

• INC-20A: Declaration for Commencement of Business

  For companies incorporated in India after November 2019 with a share capital, obtaining a Commencement of Business Certificate is mandatory before commencing operations or exercising borrowing powers. This certificate must be filed using Form INC-20A within 180 days of incorporation.

  Penalty for Non-Compliance: Failure to secure this certificate attracts a company fine of Rs. 50,000, while each defaulting director faces a penalty of Rs. 1,000 per day until compliance is met.

• Appointment of Auditor and Filing E-form ADT-1

  The initial auditor for your company must be appointed within 30 days of its incorporation. This appointment is subsequently ratified by shareholders at the first Annual General Meeting (AGM). Following the AGM, Form ADT-1, confirming the auditor's appointment, must be filed with the Registrar of Companies (ROC) within 15 days.

• Board Meetings

  The first Board Meeting should be convened within 30 days of incorporation. Subsequently, companies are mandated to hold at least four Board Meetings annually, ensuring that the interval between any two meetings does not exceed 120 days.

  • Discussions from these meetings must be meticulously recorded in the minutes and maintained at the company's registered office.
  • A minimum of seven days' notice is required for any Board Meeting, specifying the date and purpose.
• Annual General Meeting (AGM)

  The inaugural AGM must be conducted within nine months from the close of the first financial year. For subsequent years, AGMs are to be held annually within six months from the end of the financial year, with a maximum gap of 15 months between two consecutive AGMs.

  • AGMs serve critical functions such as approving financial statements, declaring dividends, appointing or re-appointing auditors, and determining directors' remuneration.
  • These meetings must be held during business hours on a non-public holiday, either at the company's registered office or within the city, village, or town where the registered office is located.
• Annual ROC Filings

  Private Limited Companies are obligated to file annual accounts and returns with the Registrar of Companies, detailing shareholder and director information. Essential forms for annual compliance include:

  • AOC-4: Filing of Financial Statements: This form, for submitting the company's financial statements, must be filed within 30 days of the Annual General Meeting (AGM).
  • MGT-7: Annual Returns: Form MGT-7, covering annual returns, must be filed within 60 days of the Annual General Meeting.
  • DIR-12: Appointment/Resignation of Directors: This form addresses changes in the company's directorships, including appointments and resignations, and must be filed within 30 days of such changes.
  • DIR-3 KYC: Director KYC Submission: Directors whose Director Identification Number (DIN) was allotted by March 31st of a given financial year and is in 'Approved' status, must submit their KYC details via Form DIR-3 by September 30th annually. Failure to comply incurs a penalty of Rs. 5,000.
  • DPT-3: Return of Deposits: Companies must report details of deposits and other non-deposit receipts annually using this form by June 30th.
• Directors’ Report

  An abridged Directors’ Report, covering all requisite information under Section 134, must be prepared for small companies. This report needs to be authorized by either the Chairperson or at least two directors.

Korrectax is committed to simplifying your company's compliance journey, offering expert support to ensure timely and accurate adherence to all regulatory requirements. Partner with us for peace of mind and sustained growth.

Navigating the complex landscape of company compliance is crucial for the seamless operation and legal standing of any private limited company. At Korrectax, we understand the importance of adhering to statutory requirements, ensuring your business remains compliant and avoids penalties.

A fundamental requirement involves the timely dissemination of crucial financial information. Companies are mandated to send approved financial statements, along with the Directors' and Auditors' reports, to all members at least 21 clear days before the Annual General Meeting (AGM). This ensures transparency and allows members adequate time for review.

To help you stay organized and meet your obligations, here's a concise summary of the key annual compliances for private limited companies and their respective due dates:

Ensuring timely adherence to these compliances is vital for avoiding penalties and maintaining good corporate governance. Korrectax provides expert guidance and comprehensive services to help your company effortlessly manage all its annual compliance requirements, allowing you to focus on your core business growth.

Beyond standard annual filings, companies must navigate a diverse landscape of compliance requirements triggered by specific events throughout their operational lifecycle. Missing these crucial, event-driven compliances can lead to significant penalties and legal repercussions.

These compliances often necessitate the timely filing of various forms with the Registrar of Companies (ROC) upon the occurrence of specific events. Such events include:

• Changes in the authorized or paid-up capital of the company.
• Allotment of new shares or transfer of existing shares.
• Granting loans to other companies or directors.
• Appointment of a managing or whole-time Director, and changes in their remuneration.
• Opening or closing bank accounts, or changes in bank account signatories.
• Appointment or change of the statutory auditors of the company.

Adhering to the prescribed timelines for these filings is paramount to avoid additional fees and penalties.

Non-Registrar Compliances

In addition to ROC filings, businesses must also navigate a complex landscape of non-ROC compliances. These regulatory obligations, while not directly involving the Registrar, are vital for lawful operations and may be governed by various other regulatory bodies and laws based on your business's nature, size, and industry. Key areas include:

• Periodic Tax Payments: Timely payment of Goods and Services Tax (GST) liability, Tax Deducted at Source (TDS), Tax Collected at Source (TCS), Advance Tax, and Professional Tax (PTax).
• Filing of Periodic Returns: This encompasses monthly/quarterly/annual GST Returns, quarterly TDS Returns, annual Income Tax Returns, Tax Audit Reports, half-yearly Employees' State Insurance Corporation (ESIC) returns, Provident Fund (PF) returns, and professional tax (PTax) returns.
• Regulatory Assessment & Reporting: Adhering to specific regulatory assessments and reporting requirements under various acts such as the Environment Protection Act, Competition Act, and Factory Act, depending on your business activities.

Consequences of Non-Compliance

Non-compliance with the Companies Act and other regulatory frameworks in India carries substantial consequences. Penalties typically involve fines, which can escalate with the duration of non-compliance, alongside additional fees for delayed filings. These financial repercussions underscore the critical importance of fulfilling all compliance obligations promptly to safeguard your business.

Streamline Company Compliance with Korrectax

At Korrectax, we empower entrepreneurs to seamlessly manage all their company compliance requirements. Our expert team and robust platform ensure your business remains compliant, allowing you to focus on growth. Here’s how we can help:

• Dedicated Compliance Advisor: Your company will be assigned a dedicated Compliance Manager. This expert will be your single point of contact, providing personalized assistance and ensuring all your compliance needs are met efficiently.
• Comprehensive Accounting Services: All companies are mandated to maintain accurate accounts and prepare financial statements annually. Our Compliance Manager will assist your company in meticulous bookkeeping and prepare your financial statements at the close of each financial year.
• Expert Secretarial Services: We handle essential secretarial duties, including facilitating a minimum of four board meetings and an annual general meeting, preparing minutes for these meetings, and drafting your Directors' Report and Annual Report each financial year.
• Efficient MCA Annual Return Filing: The Annual General Meeting must be held within six months of the financial year-end, and MCA annual returns filed by September 30th. Our Compliance Manager will meticulously prepare all necessary documents and ensure timely filing of your company’s MCA annual return.
• Hassle-Free Income Tax Return Filing: Regardless of income, profit, or loss, every company—even dormant ones—is required to file an income tax return annually. Our dedicated team will prepare all documentation and accurately file your company’s income tax return.
• Korrectax Compliance Platform: Leverage our advanced compliance platform designed to simplify and streamline your compliance tasks. Track deadlines, manage obligations, and generate reports with ease.

Ready to eliminate compliance complexities? Partner with Korrectax for reliable, expert-driven compliance management. Contact us today to ensure your business stays compliant and thrives.