KYC Annual Compliance: Compliance as per Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014 e- Form DIR-3 KYC or DIR-3 KYC-WEB as applicable on the company. It is important to do this to avoid disqualification of the directors.

Filing Annual Return of Deposits: Annual Return of Deposit and Particulars of transactions by a company not considered as deposit to be filed in FORM-DPT-3 in accordance with Sec73- 76,The Companies (Acceptance of Deposits) Rules, 2014.

Certificate of Commencement of Business : Introduced by the Companies (Amendment) ordinance 2018 under section 10A of the Companies Act, 2013 which came into effect on 2nd November, 2018, every company incorporated in India after the commencement of the Companies (Amendment) ordinance 2018 and having a share capital is mandatorily required to obtain a Certificate of Commencement of Business and only after doing so, the company can commence any business or exercise its borrowing power. In order to obtain the certificate of commencement of business, any director of the company is required to file with ROC, form INC-20A within a period of 180 days from the date of incorporation, a declaration stating the following points:

  1. That each subscriber to the Memorandum has paid the value of shares as agreed to be taken by him and
  2. The company has filed with the Registrar a verification of its Registered Office in form INC-22

Preparation of Board Report and related documentation: The Board report, MGT-9, AOC-2 and other documents are required to be finalized by at least two directors one of which should be a managing director, CEO, CFO or CS if any. Preparation of such documents requires accuracy and precision. These have to be prepared before Annual General Meeting every year and have to place before members for approval.

Annual Filing

Once the company is incorporated it becomes a separate legal entity which is liable to comply with the requirements of the Companies Act, 2013. One of the important requirements of a company is to publish a true and fair state of its affairs. Even though a company has a separate legal entity, the business is conducted by living persons and they are the stakeholders of the company who have introduced capital to run the show. The stakeholders are interested in knowing how their funds are being utilized and whether it is profitable for them to invest further in the business or not.

Annual filing of financial statements

Filing of Annual Returns

For this, the Companies are required to file their Annual Return in form MGT-7 and Statement of Profit & Loss Account in form AOC-4 every year within the prescribed time. Other entities are also required to file their returns and financials in different prescribed forms.

Non filing of the same leads to heavy penalty and strike off of the company.

XBRL Filings: It is mandatory for listed companies or subsidiaries having turnover of Rs.100 crores or more or having paid-up capital of Rs. 5 crores or more.

Filing of Disclosure of Interest of Directors and Disqualification declaration by the Director: These disclosures and declaration are to be given every financial year by the company and must be incorporated in the board meeting.

Form – MBP-1: disclosure to be given every financial year or when there is a change in interest. (Sec-184 , Sec 189(2), Rule 9 of Companies (Meetings of Board and its Powers) Rules, 2014)

Form –DIR 8 – Intimation by the director to be filed every financial year. (Sec 164(2), Rule 14 Companies (Appointment and Qualification of Directors) Rules, 2014)

Filing half-yearly MSME returns: This is a Half –yearly return which is required to be filed two times in a year by companies who have Micro and small enterprises as their creditors and there is an amount outstanding for more than 45 days. The return would declare all outstanding amount, if any to Micro or Small enterprises and reason for delay in payment.

Appointment and Resignation of Directors, KMPs, Auditors: Change in the top management involving appointment, resignation, cessation, change in designation will attract mandatory compliances and reporting. Therefore timely filing of prescribed forms are necessary to escape additional fees burden.

Shifting of Registered Office:

Registered office is a place where all the communications and notices are sent.

According to section 12 of the Companies Act, 2013 it is mandatory for all companies to have a registered office either at the time of incorporation or within 30 days of incorporation of the company. Companies can also shift its registered office within or outside the local limits of a city or from one state to another. Any change in the situation clause of the MOA needs to be intimated to the ROC within 30 days in E-Form INC-22. Shifting of registered offices has been discussed in detail in a separate blog.

Share Transfer and related documentation: Process of share transfer involves valuation, approvals, share transfer deed, splitting of share certificates, SH-4 stamping, acknowledgement, issuance of new share certificates and recording in a meticulous manner. It helps if done under expert guidance.  

Declaration of significant beneficial ownership: This is a return to the Registrar in respect of declaration under section 90 by an individual, trust, group of person holding more than 25% in the shares, control of the company. It has to be filed within 30 days of receiving declaration of significant beneficial ownership under section 90.