A company which has been incorporated in India must ensure compliance with the Companies Act,2013
In India, company registration compliance refers to the legal obligations and requirements that companies must fulfill after registering with the Registrar of Companies (RoC) under the Companies Act, 2013. These compliance requirements are in place to ensure transparency, accountability, and good corporate governance.
Here are some key compliance requirements for companies in India:
Annual General Meeting (AGM): Every company is required to hold an AGM within six months from the end of its financial year. During the AGM, various matters such as the approval of financial statements, appointment of auditors, and declaration of dividends are discussed.
Financial Statements: All companies, except for small companies and one-person companies, are required to prepare and file financial statements with the RoC. These statements include the balance sheet, profit and loss account, cash flow statement, and notes to accounts.
Board Meetings: Companies must conduct board meetings at regular intervals, with a minimum of four meetings in a calendar year. The intervals between board meetings should not exceed 120 days.
Filing of Annual Returns: Every company needs to file an annual return with the RoC within 60 days of holding the AGM. The annual return contains details about the company's shareholders, directors, and changes in shareholdings during the financial year.
Statutory Registers: Companies are required to maintain various statutory registers, including registers of members, directors, and charges. These registers should be updated regularly and made available for inspection.
Appointment of Auditors: All companies must appoint auditors who will audit the company's financial statements. The first auditor must be appointed within 30 days of company incorporation, and subsequent auditors are appointed at AGMs.
Tax Compliance: Companies need to comply with various tax-related obligations, such as filing income tax returns, paying taxes, and maintaining appropriate tax records.
Compliance with Other Laws: Companies must adhere to other applicable laws, such as the Goods and Services Tax (GST) Act, labor laws, environmental regulations, and any sector-specific laws.
Statutory Compliances: Companies need to fulfill other statutory compliances related to changes in the company's structure, such as alteration of the memorandum and articles of association, appointment/resignation of directors, changes in share capital, etc.
Compliance Certifications: Certain companies, based on their size and nature of operations, may be required to obtain compliance certifications such as a secretarial audit report, cost audit report, or internal audit report.
It's important to note that compliance requirements may vary based on the type and size of the company. Non-compliance with these requirements can result in penalties, fines, or even legal consequences. Therefore, it is advisable for companies to engage professionals, such as company secretaries or chartered accountants, to ensure proper compliance with all applicable laws and regulations.
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