Compliance Checklist for Investors

  • January 14, 2023
  • Dushyant Sharma
Want to know More ?

Investment has a key role to play in the Business. Talented Businessmen need investment to expand his/her business to a very good extent. Here Investment refers to the Funding taken from strong angel investor community, venture capital investors and private equity firms. In recent times equity funding has major function to play in any Business. Business type like e-Commerce and other forms of Online Business are the most successful type of entrepreneurship in the current decade. There are some of the due diligence target companies. Here is the checklist of what Investor look at while deal with funding and checking compliance of the Company.


Business Entity

In case of equity investment there is a requirement of issuance of shares of the company to the investor in return for equity / shares. This is only possible in private limited company or limited company capable of supporting transaction. Company Incorporation should be the first step to raise funds. Memorandum of Association (MoA) and Articles of Association (AoA) of the Company are drafted to handle an equity investment.


ROC Compliance

Statutory register must be maintained by the Company as per the compliance in Companies Act, 2013. After Company Incorporation here is some of the mandatory compliance that are need to be followed by company for e.g. Maintaining Statutory register, Annual filing, Appointment of Auditor, Conducting of board meetings etc. Above areas pertaining to ROC compliance will be verified during the investment due-diligence.


Tax Compliance

Depending on the nature of business and state of operation tax compliance for a business would vary in Business. Business engaged with selling goods or items would need to consent to state VAT controls, including VAT regulation, VAT regulation and documenting of VAT returns. Not with standing administration duty or VAT directions, salary impose consistence would likewise be checked. TDS return filing and TDS return documenting would be checked to guarantee that the business conformed to the important Income Tax guidelines and directions.


Labour Law Compliance

On the off chance that the investee Company has a worker workforce of more than 20, the business would need to consent to ESI and PF controls. Subsequently, ESI registration records, ESI return documenting, PF return documenting, ESI payments and PF payments would be checked. In the event that the company it is associated with the improvement of protected innovation, at that point due-steadiness will likewise be performed to guarantee that the business has the vital worker non-revelation agreement set up.


Intellectual Property

Technology based has many assets and intellectual property is one of them needed to be registered. Intellectual provides exclusive right to the Company, Brand or Individual firm. Trademarkcopyright, patent and design are the forms of intellectual property.

  • Share This Post

Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

Related Posts

to our newsletter