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06 Apr2023
  • By Authored by CS Disha Agarwal
  • Category Company and LLP Compliances
  • Views 496
Are you aware of the compliance obligations that come with incorporating a company?

It's crucial to comply with one-time, bi-annual, and annual requirements throughout the fiscal year.

Failure to do so can lead to hefty penalties under the Companies Act, 2013. Stay on top of your compliance obligations to avoid any legal consequences.

Here we come with a solution to this issue, a Compliance Calendar for the Companies under the Companies Act, 2013 & FEMA Act, 1999 are categorized as follows:
 
       1: One -Time Compliances of Newly Incorporated Companies 
 
Form Name Form Description Due Date Penalty
INC-20A Declaration of Commencement of Business Within 180 days of incorporation Additional fess shall be imposed as per Table-1. Further, a penalty 50,000/- will be imposed on the corporate.
FCGPR When the Company receives the foreign investment, and against such investment the Company will allot shares to a foreign investor. Within 30 days of allotment of securities. INR 5000 or 1 % of the total amount of investment, which can up to a maximum of 5 lakh or. Part thereof for the first six months of delay and after that rate will be 2 times.
ADT-1 Notice to the Registrar by the Company for appointment of First auditor Within 15 days from the First Board Meeting. Refer Table-1 of Additional Fee.
 
       2: Half yearly and yearly compliances
 
Form Name Form Description Due Date Penalty
DIR-3 KYC Directors KYC Before 30th September of the following financial year No fee is payable up to the due date of each financial year. After the due date, a Penalty of Rs. 5000 shall be payable.
DIR-8 Intimation by Director of disqualification under Section 164 (2) of the Companies Act, 2013. Only before appointment or re-appointment The company shall be punishable with fine which shall not be less than Rs.50,000/- but which may extend to Rs.25,00,000
MBP-1 Disclosure of Interest by Directors. At first board meeting for every financial year. If any director of the Company fails to disclose his/her interest in other entities in form, such director shall be liable to a penalty of Rs. 1,00,000/-.
DPT-3 Return of Deposits OR particulars of transaction by a company not considered as deposits as per Rule 2(1) of the Companies (Acceptance of Deposit) Rule, 2014 OR return of deposit and particulars of transactions by a company not considered as deposits (unsecured loans, sundry creditor etc.). By 30th June of every year. Additional fees as per Table-1 will be imposed. Further, a penalty of at least Rs. 1 crore, or double the amount of deposits, whichever is smaller, may be imposed under Section 73, with a maximum penalty of Rs. 10 crores.
AOC-4 / AOC-4 XBRL Form for filing Financial Statement and other documents with the Registrar Within 30 days from conclusion AGM. Penalty of Rs. 100 for each day during which such failure continues, subject to a maximum of Rs. 200,000/- in case of a company and Rs. 50,000/- in case of an officer who is in default.
AOC-4 CFS Form for filing consolidated Financial Statement and other documents with the Registrar Within 30 days from conclusion AGM Same as AOC-4
Form
MR-3
(Applicable only on Public Companies
 
Submission of Secretarial Audit Report along with the Board Report when: Its total paid-up Share capital is equal to or more than Rs. 50 crore or its annual turnover is equal to or exceeds Rs. 250 crores To be submitted along with Board as an Attachment in AOC-4 Fine which shall not be less than Rs.1 lakh but which may extend to Rs.5 lakhs.
MGT-7/
MGT-7A
Annual Return Within 60 days from conclusion of AGM Late filing fees is INR 100 per day.
MGT-8 Certificate by a Practicing Company Secretary. In case of a listed company or a company having paid up share capital of Ten crore rupees or more or turnover of Fifty crore rupees or more To be submitted to ROC as an attachment of Form MGT-7 The fine charged on the company secretary shall not be less than Rs. 50,000 and might extend to Rs. 5 Lakh
MGT-14
(Applicable on Public Companies)
To be filed by public company after passing resolution of approval of financials statements and board report in Board Meeting Within 30 days from passing of board resolution Additional fees will be imposed as per Table -1 of penalties. Further, a company shall be liable with a penalty of 100000.
ADT-1 (If applicable for the said year) Notice to the registrar by the Company for appointment of Auditor Within 15 days from conclusion of AGM Refer Table-1 of Penalties
CRA-2 Form of intimation for appointment of cost auditor by the Company to Central Government (Applicable to the companies that are engaged in the production of goods or provision of services of items as mentioned under Table (A) and Table (B) of Rule 3 of the Companies (Cost Records and Audit) Rules, 2014) Within a period of 30 days of the Board meeting in which such appointment is made or within 180 days of the commencement of the Financial Year, whichever is earlier. Refer Table-1 of Penalties
CRA-4 Form for filing Cost Audit Report with Central Government Within 30 days from Receipt of cost audit report Refer Table-1 of Penalties
PAS-6
(Applicable on Public Companies)
Form for Reconciliation of share capital audit report on half yearly bases The form is to be filed half yearly and within 60 days from the conclusion of each half year duly. A one-time penalty of Rs. 10,000.
Additionally, a penalty of Rs.1,000 per day is imposed on the company for continuing default subject to a maximum of Rs.2,00,000 on the company.
FLA The company shall be reported its foreign investment & overseas investment made during the previous year including current year. By 15th of July each year. Penalty of thrice the amount involved in the contravention in the case where the contravention is quantifiable. However, if the contravention is not quantifiable, then the company shall be liable to pay Rs. 2 lakhs for the contravention.
 
  • Table-1 of Additional Fee
     
Serial No. Delay in Filing Penalty
1. Up to 30 days 2 times of normal fees
2. Between 30 days to 60 days 4 times of normal fees
3. Between 60 days to 90 days 6 times of normal fees
4. Between 90 days to 180 days 10 times of normal fees
5. More than 180 days 12 times of normal fees

Conclusion:

Compliance with Companies Act, Foreign Exchange Management Act and other applicable Acts are essential for any company's success, and non-compliance can have severe consequences, including imprisonment for officers in default and the striking off of the company by the Registrar of Companies.

To avoid such outcomes, it is crucial to appoint professionals who can ensure proper governance and compliance within the organization.

Furthermore, seeking professional consultation before making significant decisions can help prevent any potential compliance issues down the line. Stay compliant, stay successful!

Note:- The due dates mentioned are subject to change as and when notified by the concerned department.

Take charge of your company's compliance obligations today and ensure a successful future. Consult our experts and stay compliant to avoid legal consequences. Contact us today at info@manishanilgupta.com

Disclaimer: The information provided in this blog is for general purposes only and should not be considered as professional advice.

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