Buying a car or incorporating a company is a similar thing. When you buy a car you need to spend some time and money for its maintenance and servicing, even if you don’t use it every day. Similarly your Private Limited is liable to certain Compliance which needs to be completed with a month from Date of Incorporation.
Compliances are a foregone reality and instead of ignoring them, which we of course cannot, the best thing is to accept them and their nuances that will help entrepreneurs do business with comfort and ease.
What is compliance?
Compliance means filing of certain forms and information from time to time to central government as statutory requirement. It’s a combined word for all the filings that need to be done to keep your company in good standing with the government authorities.
Who do you need to manage the compliance of your Company?
For a private limited company seeking to grow at a rapid pace, it is necessary that it stays clear of unnecessary legal paraphernalia.
Falling in line with the compliance system ensures that there are no legal fines or penalties or for that matter work stoppages or lawsuits against the company. In certain cases it can all be sorted with a warning but when the issue is a graver one, the companies end up paying fines for not following the compliance. To avoid the predicament, it is better to hire a compliance expert like Registrationwala.com
3 main reasons why do you need to stay compliant?
- Improved Public Relations
Once a company has met all its legal obligations it can actually market it positively on websites or through ads. It can be put in job applications and all other places via which the company is reaching the market. Managing the compliance brings good name to the company.
- Employee retention
There are many compliance issues that deal with the benefit of the employees, some these even talk about protecting the employees. For a company that adheres to these guidelines, it becomes easy to retain the employees as the workforce of the company feels home in the company and strives to work for the betterment of the business and the product.
Thus, for a Private Limited, which anyway is bound by a lot of compliance guidelines, it is paramount to manage all that. As in the longer run it showers the company with all the benefits that may or may not be visible in the beginning.
- Smooth operations
Certain rules help more than they harm. Rules related to discrimination and harassment help create a better working environment for employees which can lead to better productivity. Also better security – financial as well physical – help employees provide more to the company.
What are the compliances your company is liable to fulfill?
One time Compliance to start the Annual Process
- Obtaining stationery Minutes binders
- Appointment of First Auditor.
- Preparing and printing Share certificates
- Preparing the statutory registers in E Form
Quarterly Compliances (After Every 90 Days)
- Holding the Board Meeting
- Drafting the notice of BM,
- Preparation of attendance sheets of the board meetings,
- Preparing minutes thereof,
- Updating the statutory registers, if required
- Preparing the directors’ disclosures of interest in other concerns;
- Accounting Entries will be done by our team up to 300 entries and more than that will be charged at Rupee 1 per entry;
- Statutory auditing of the Company/LLP up to 300 transactions or 10 Lakhs turnover whichever is earlier;
- Obtaining the financials from Auditor;
- Finalisation of Financial Statement;
- Drafting of Board’s report;
- Prepare Notice and Agenda for the AGM;
- Filling of form “ITR 6” for Income Tax Return with the department with Digital Signature;
- Drafting of Annual return;
- Auditor’s reappointment Document has to be prepared;
- Minutes of AGM;
- Preparation of Fresh Appointment letters to Auditors if any;
- Filing form for the appointment of Auditor through ADT-1 along with all attachments;
- Filing of Financial Statements by filing form AOC-4, MGT-7 along with all attachments.
Benefits of completing compliance on Time
Considering that the needs and burdens of compliance will never go away, it is time to embrace them—not as only a cost of doing business, but for the many benefits that they bring, including the 5 listed here.
- Risk reduction – organisational as well as individual
Once a company has lived up to the entire compliance requirement it saves itself from lot of legal and financial troubles. By legal troubles we mean the investigation and business interruptions that follows.
- Crisp and better organized framework
In cases where compliance is done on time, there are always certain filters and reference points which help in getting rid of paraphernalia and make sure the company stuck to what is best suited for the development of its services.
- Better relationship between stakeholders
Any stakeholder or regulator, while doing business with a company, ensures that the business he is stepping into is ethically and morally a well set unit.
- The more the transparency the better the business
Compliance ensures that there is transparency in the way a business functions. The customers when provided by a true and honest story, which happens when you complete the compliance on time, about a company, they are lured into it.
- Helps realize the mission of the company
Compliance programs are what make sure that everyone in the company is aware of the actual agenda. Because of its legal nature it is like a whip to ensure that everyone is on the same page as far as the mission of the company is concerned.
It is important for all organizations to be managed efficiently and in a professional manner . So it is very important how it is controlled and adapted to these rules and regulations.
It’s always better to hire compliance filing experts to take care of all the due dates and avoid the last minute hassle and govt. penalties.