Business Compliance: Hire a Chartered Accountant
If you have given birth to a baby, would you just leave her/him like that? No na? You will take due care of her/him so that she/he do not get into a trouble. You will take good care of their health so that they are nourished better. Then I guess you are a responsible parent and a responsible entrepreneur too. You will take good care of your company and won’t let your business get into trouble of paying fines and penalties. You just need to follow business compliance with legal requirements so that your business can run smoothly.
we will help you out in following business compliance. Check out what can we do for you:
- Accounting: Not only does accounting help you in keeping things organized, helping you in effective decision making, but is also a mandatory compliance. Both Companies Act and Incoma Tax Act call for maintaining books of accounts. You need to record all your financial transactions, including income, expenditure, assets, liabilities, etc , including the documents supporting the same.
- Appointment of auditor: Auditor is a Chartered Accountant who audits or verifies that the accounts you have maintained are true and fair, and are compliant of all the laws. The first auditor of the company must be appointed within 30 days of the incorporation of the company, who will continue the office until the first Annual General Meeting of the company. Before the appointment, the auditor needs to give a written consent that he meets the requirements of the Companes Act and is not disqualified (read here to know about qualified and disqualified auditor).
- Board Meetings: Board meetings are held by directors of the company to discuss agendas and take important decisions. Minimum 4 board meetings must be held every year, and the time period between two board meetings should not be more than 120 days. 1/3rd or more number of total directors should attend the meeting, and minimum directors attending the meeting should be 2. A notice for board meeting should be sent at least 7 days before the board meeting to all the directors. “Just don’t forget to save minutes of the meetings”.
- Holding an Annual General Meeting: An annual General Meeting of the company is required to be held every year, where financial statements are approved, auditor is appointed, salary of directors is decided, dividend is declared and other plans of the company are discussed. The meeting must be held within 6 months of the end of the financial year, i.e, before September 30.
- Filing Annual Return and Financial Statements: Every private limited company is required to file its audited financial statement (within 30 days of Annual General Meeting) and annual return (within 60 days of Annual General Meeting), with the Registrar of Companies (ROC).
- Filing Income Tax Return: Filing and Income Tax Return is mandatory for a company. If you don’t have a revenue, it is even more beneficial to file a return. Why? Coz your losses can be carried forward till 8 years. Audited financials are necessary for filing an Income Tax Return. Last date for filing ITR for companies is September 30.
- Maintenance of registers: A company needs to maintain certain registers like register of charges, register of members, register of directors and key managerial personnels, register of debenture holders, minutes books, register of loans, register of investments, register of contracts in which directors are interested, etc.
Other business compliance include:
- Company name change
- Company Address Change
- Increase in authorised share capital
- Reduction in share capital
- Add/remove directors
- Change of objects
- Obtaining DIN and DSC
- Surrender of DIN
- Private placement of shares
- ESOP
- Preparation of Directors’ Report
- Preparation of notices of board meetings, minutes and their maintenance
- Preparation of annual return and uploading
- Consultancy on any issue pertaining to companies Act