In addition to annual filings and incorporation, businesses in India must adhere to several other MCA (Ministry of Corporate Affairs) compliances to stay legally compliant. Some of the key MCA compliances include:
Director’s Report: Companies are required to prepare and submit a director’s report along with the financial statements, detailing the company’s performance, future outlook, and other important matters.
Board Meetings & Annual General Meetings (AGM): Companies must hold regular board meetings and an AGM to discuss and approve important decisions. The minutes of these meetings must be recorded and submitted.
Form MGT-14: Used for filing resolutions passed by the board of directors or shareholders, such as changes in the company’s constitution or business activities.
ROC Filings: Various forms such as DIR-12, INC-22, AOC-4, and MGT-7 need to be filed with the Registrar of Companies for changes in directorship, registered office, financial statements, and annual return.
Compliance under the Companies Act, 2013: Including maintenance of statutory registers (like the register of members, directors, and charges), filing of returns, and timely disclosure of related party transactions.
Filing of Financial Statements: Companies must file their balance sheet, profit and loss account, and other financial statements within 30 days of holding the AGM, usually in Form AOC-4.
Audit Requirements: Certain companies are required to conduct an annual audit by a certified auditor, and the audit report must be submitted with the financial statements.
Deposits and Loans: If a company takes deposits or loans from shareholders or public, they must comply with specific rules and file related forms such as DPT-3.
Foreign Direct Investment (FDI): Companies receiving foreign investment must comply with the Foreign Exchange Management Act (FEMA) and report such investments to the RBI and MCA.
These are just a few examples; the specific compliances depend on the type and size of the company, and failing to meet them can result in penalties or even the company being struck off.
