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.
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.
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.
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.
Here is the list of compliance requirement which every form of company is required to fulfill-
• Obtaining stationery Minutes binders.
• Appointment of First Auditor.
• Preparing and printing Share certificates.
• Preparing the statutory registers in E Form.
• Holding the Board Meeting.
• Drafting the notice of BM.
• Preparing minutes thereof.
• Preparation of attendance sheets of the board meeting.
• Calculation and Quarterly Payment of Advance Tax.
• Filing of Income Tax Returns.
• Tax Audit – Mandatory in case sales, turnover or gross receipts of a business exceed Rs. One Crore in the previous year relevant to the assessment year.
• Filing of Tax Audit Report.
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.
• Register of shares.
• Register of Members.
• Register of Directors etc.
• Incorporation documents of the company.
• Resolutions of the meetings of the Board of Directors.
• Minutes of the Board Meetings and Annual General Meeting etc.
• Preparing the directors’ disclosures of interest in other concerns.
• Preparing the declarations from the directors.
• Drafting of Board’s report.
• Drafting of Annual return.
• Obtaining the financials from Auditor.
• Email ID of all the proposed directors.
• Drafting the minutes for the pre AGM board meeting.
• Drafting of Director Report, Annual return and financials.
• Auditor’s reappointment Document has to be prepared.
• Preparation of Fresh Appointment letters to Auditors if any.
• Preparation of Annual General Meeting Minutes and related documents.
• Preparation and filing of balance sheet; P&L and Auditors appointment, with the RoC.
• Filling of AOC 4 , ADT 1 , MGT 7 with their respective attachments.
• Filling of form “ITR 6” for Income Tax Return with the department with Digital Signature.
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.
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.
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.
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.
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.
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.