BENEFITS OF ACCOUNTING & BUSINESS COMPLIANCES TO A BUSINESS

• Budgeting: It assists organisations in efficiently controlling the company’s income and expenditure while monitoring managerial policies and goals.
• Evaluating the Business’s Performance: Helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on.
• Managing Cash Flow: 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.
• Financial Information to Investors and Stakeholders: Investors will gain a better understanding of the business’s financial health, including its solvency, creditworthiness, liquidity, stock, and bond issuers.
• Mandatory by law: In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.

DOCUMENTS REQUIRED

The documents required will vary depending on the service you require. Our professionals will convey the same to you based on your requirements.

PROCESS OF FILING ANNUAL COMPLIANCE

The mandatory compliances that most businesses must meet are as follows. At Vakilsearch, our qualified chartered accountants, accounting and taxation professionals, and company secretaries will handle all of your compliance needs. We offer the best-in-class legal consultation for your company. Our team will cover the following compliance requirements as mandated by the Ministry of Corporate Affairs.

Facilitation of meetings of board of directors:

The first meeting has to be conducted within 30 days of incorporating a business after which four meetings shall be held every quarter in a calendar year. There should not be more than 120 days between two consecutive meetings.

Preparation of the minutes of proceedings of meeting:

Every company needs to file its minutes of the meetings and they shall be preserved permanently to add value in case of any dispute. The meeting minutes are to be maintained at the registered office.

Issuance of share certificates:

The company is required to issue a share certificate to the subscribers of the memorandum within 60 days of incorporation.

Filing of disclosures of directors’ interests and declarations of disqualification:

In the first board meeting, all the directors are required to make disclosures about their interests in other business entities.

Filing declarations of commencement of business with the RoC:

This has to be done upon registration of the company. Form INC 20A mandatorily needs to be filed within 180 days of incorporation.

Facilitation of annual general meetings:

A company shall conduct at least one AGM each year. The first AGM shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.

Annual company returns need to be filed with the RoC within 60 days of the conclusion of the AGM.

Quarterly compliance:

Every company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.

Statutory registrations:

All statutory registrations like GST, PF, ESI, IEC, etc. must be completed.