COMPLIANCE REQUIREMENTS FOR COMPANIES IN INDIA

The Companies Act, 1956 has elaborate provisions relating to the Governance of Companies, which deals with management and administration of companies. It contains special provisions with respect to the annual compliance requirements. Companies incorporated under the Act have to file various forms, returns and documents under various sections with the Registrar of Companies (ROC) in an electronic mode within the prescribed time.

 All filings, since September 30, 2006, are made through e-filing using specially designed e-forms. The general annual compliance requirements for both public and private companies are discussed below. Meetings - (AGM) , meeting of its Board of Directors Accounts, Auditing & Returns first annual accounts of a newly incorporated company Annual Accounts

 Registers - Register of Member Register of Directors, Register of Contracts, Register of Charges, etc. The registers are required to be kept at the registered office of the company. Event Based Compliance Apart from above annual compliance requirement companies are required to report events to the ROC. Events requiring reporting compliance are Receipt of share application money Allotment of shares Transfer of shares

 Appointment/Resignation of directors Appointment of Managing Director/ Whole Time Director Executing agreement with related parties Change in the Bank signatories Change in the statutory auditors Change in registered address Changes in any of the registered particulars
Filing of Tax Returns Companies have to file their annual corporate tax returns. Additionally Companies who provide a service to their customers must file their service tax returns every six months.

 Companies that sell a product must file annual sales tax or submit their value added tax returns. Directors Responsibility in Compliance The Directors are held responsible for all ongoing compliance requirements. Directors must ensure that the companys activities do not deviate from the MOA. Non compliance will attract heavy fine or even prosecution at the Court of Law. Directors must ensure that the company acts in trustworthy manner without any wilful negligence of its obligations, and disclose true information about its financial status and business activities.