Company Compliance FAQ
What are compliances?
Compliance is when a company adheres to the applicable laws, rules, and internal company directives. This includes country-specific laws and requirements from regulatory authorities.
What are company filings?
Company filings are legal documents and forms that are submitted to the Registrar of Companies (ROC) as required by the Companies Act 2013. Some examples of company filings include incorporation documents, annual returns, financial statements, and changes in shareholders or directors.
- In India, small businesses can be run without registering, but it is recommended to register the company to obtain certain benefits and to ensure legal compliance. There are several unregistered business structures that small enterprises commonly use:
- Sole Proprietorship
- A partnership Firm
- Hindu Undivided Family (HUF)
Starting a business in India requires compliance with various legal requirements, including registering the business, obtaining necessary licenses and permits, and complying with labor and tax laws. Some of the essential legal requirements for starting a business in India are as follows:
- Choose a Business Structure
- Register Your Business Name
- Obtain Director Identification Number (DIN)
- Incorporate the Business
- Obtain PAN and TAN
- Obtain Other Licenses and Permits
- Labor Laws Compliance
- Tax Compliance
- Open a Business Bank Account
The main purpose of company compliance is to adhere to internal policies and procedures and governmental laws. Implementing compliance procedures protects the company's reputational risk, improves the company's vision and value, and prevents and detects violations of rules.
Companies can ensure compliance by:
- Keeping up to date with applicable standards
- Establishing clear policies
- Developing an ethical culture
- Establishing the essential resources
- Monitoring its supply chain
- Conducting an initial internal audit
- Providing employees with regular compliance training
The ROC is a government agency that regulates and maintains records for companies registered in India.
ROC is the officer governed by the MCA that deals with the functioning, the ROC has to ensure that the Private Limited Companies and the LLPs comply with the statutory requirement of the ACT. The registrar of the companies functions as the regulator for the companies registered with them.
Yes, digital signature certificates (DSC) are mandatory for filing forms with the MCA.
Non-compliance can result in:
- Monetary fines and penalties.
- Suspension or cancellation of licenses.
- Legal liabilities for directors or officers.
- Damage to reputation and loss of business opportunities.
The international trademark registration is valid for a period of ten years. You can renew it as early as six months before the expiration of this ten-year term or within the six-month grace period after it expires.
