Business Compliances Under The Companies Act 2013

Initiating a business is not an easy job. It requires a lot of planning, understanding and assessing the market, building structure for operating the business, etc. Before starting and managing a business, one needs to comply with the required guidelines and procedures for the smooth running of the business. Business compliance also includes formulating profit-loss accounts, managing administration of the business, filing and maintaining annual returns, holding board meetings at regular intervals. The finances of the business must be tracked and kept in records for preventing issues such as raids or incurring fine on behalf of failure of not complying with legal requirements while incorporating any organization.

Compliance is when a business is set up in accordance with all the guidelines or procedures laid down by statutory enactment.

• Budgeting- Budgeting helps organizations to efficiently control the income as well as expenditure by monitoring the managerial policies and goals.
• Evaluation of Business Performance- Evaluating helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on.
• Cash Flow Management- Keeping track of the money that comes into the business on a regular basis helps in projecting patterns, paying employees and suppliers, repaying debts, etc.
• Finances of the business must be shared with the investors as well as shareholders for maintaining the faith and trust of the shareholders in the organization. The investors and shareholders gain a better understanding of the financial health of the business which includes the solvency and creditworthiness of the organization. 
• Compliance with law- Strict adherence of income tax payments must be made by every organization registered under the Registrar of Companies, failing which will attract liabilities along with additional tax and fines.

Appointment, qualification, remuneration as well as the retirement of directors of the organization or a company is regulated by the Companies Act. Board meetings along with shareholder’s meetings are also regulated under the Act. 

When a company is incorporated in India for operating its business, the following provisions must be complied with under the Companies Act 2013.

• The organization must have a separate legal entity after obtaining the certificate of incorporation.
• Within 30 days of incorporation of the organization, one of the directors of the organization should issue a notice for conducting the first board meeting. The notice shall be issued 7 days prior to the date of meeting
• First auditor must be appointed within 30 days of incorporation in the first board meeting of the organization. 
• There must be a registered office within 15 days of incorporation of the organization. Such a registered office must be capable of receiving as well as acknowledge all the official communications along with notice which is addressed to the registered office. 
• A name board of the organization must be put up outside the registered office which mentions the organizations’ name, identification number, place where the registered office is situated and address for communication.
• Like an individual, it is important for the organization to have a PAN as well as TAN after the incorporation. 
• Shareholders shall be issued share certificates which outline all the details concerning shares issued. The share allotted shall also be maintained in the register of allotment.
• A profit-loss account, balance sheet as well as annual return of each financial year must be maintained and filed duly with the report of the auditor before the Registrar of Companies. 
• Under section 85, 88 of the Companies Act 2013, the organizations incorporated must maintain Statutory Registers at the registered office in a specific format. The organization along with its directors can be fined or held liable for failing to maintain the statutory register.
• In the first board meeting, every director of the business is required to disclose their interests in other businesses, if any. 
• Details of the meeting must be filed and maintained at the registered office. The details must be preserved for future references.
• One annual general meeting must be conducted every year. Within a period of 9 months from the closing of the first financial year, the first annual general meeting must be held.
• At least four meetings must be held of the board of directors of the organization, which implies one board meeting every quarter of the calendar year.
• Statutory registrations such as GST, PF, ESI, IEC, etc. must be completed.
• All the organizations are mandatorily required to contribute under the provisions of Corporate Social Responsibility.

Before starting any business in India, all the documents necessary for registration or incorporation of the organization must be complete. Starting a business involves a lot of legal formalities as well as documentation. Following are important requirements for starting a business

• Digital Signature Certificate
• Director Identification Number
• Registration on Ministry of Corporate Affairs
• Incorporation certificate
• Additionally, other documents representing the business such as the address of the organization, PAN number, GST registration, Registration with Registrar of Companies, Professional Tax registration, Provident Fund
• Based on the structure of business such as private limited company, limited liability partnership, etc., other documents are required such as bank statements, PAN, TAN, etc. of the organization.

Starting a business in India can be daunting, especially with all the legal requirements that you are required to follow. However, now that you know about them, you are not just ready to start it but ready to make it a success. Adhering to legal formalities is very important for any business; knowledge and compliance with applicable laws is the initial step to ensure smooth business operations.

The best way to ensure that your company is always safe and does not face legal complications and consequences is by hiring professional legal counsel to provide advice, oversee and maintain legal records.

1. Trustworthy & Confidential - We assure you that all your personal details & documents must be kept private. We never share these details with anyone.   
2. Expert Advice – With the help of the best corporate lawyer, you can file annual compliance of the business.
3. Zero Stress - You do not have to worry about the paperwork & complex process at the court. Our Associate will perform all these actions at the court. 
4. Top Quality Lawyers - Lead India will help you to choose among the best corporate lawyers who will assist in the process of complying with all the requirements for starting a business. There are different associates who work with us, you can choose a lawyer depending upon their practice area, experience & user rating. 
5. Track Your Case - We provide you the opportunity to track your cases from the online dashboard. You can easily track your case status, payment status, etc.