Compounding Under the Companies Act: What It Costs, Who Decides, and What It Doesn't Fix
Compounding lets a company or its officers pay a fixed sum to close a compoundable offence under the Companies…
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51 guides
Corporate Compliance in India
Running a company in India means carrying a calendar of obligations that never really stops. Some are annual — the AOC-4 and MGT-7 filings, the audit, the AGM. Others are triggered by an event and come with a clock attached: a charge registered within 30 days, a director change filed in DIR-12, a resolution reaching the ROC in MGT-14.
Almost none of it is difficult. What catches founders out is that the penalties are automatic and rarely capped — Rs 100 a day, running from the day you missed, with no notice and no reminder. A filing forgotten for a year quietly becomes a bill for tens of thousands of rupees.
These guides walk through each obligation the way it actually arises: what triggers it, which form it needs, how long you have, and what happens if you miss the date.
DPT-3 Return: Who Must File, the 30 June Deadline & Penalties
DPT-3 falls due 30 June every year, covering loans outstanding on 31 March. Even one director's loan means you…
Read →CCFS-2026: The MCA Scheme That Cuts Late-Filing Penalties by 90%, and Closes on 31 August
The Companies Compliance Facilitation Scheme lets a company clear years of overdue ROC filings for 10% of the …
Read →Vigil Mechanism (Whistleblower): Section 177(9) Applicability & Safeguards
Listed companies, deposit-accepting companies, and any company with bank/PFI borrowings over Rs 50 crore must …
Read →Statutory Registers & Records: The Full Set Every Company Must Keep
From the Register of Members (MGT-1) to charges (CHG-7), SBOs (BEN-3), related-party contracts (MBP-4) and loa…
Read →Significant Beneficial Owner (SBO): BEN-1, BEN-2 & the 10% Rule
An SBO is the individual who really owns 10%+ of a company through other entities. The SBO files BEN-1; the co…
Read →Section 8 vs Producer Company: Two "Non-Standard" Companies, and Which One You Actually Need
A group of farmers wants to pool produce, negotiate better prices, and share the gains. A separate group of pr…
Read →Inter-Corporate Loans Under Section 186: The 60% Limit, the Unanimous Board Vote, and the ₹5 Lakh Fine
A group CFO moves ₹2 crore from the flagship company to a sister company to tide it over a cash crunch, clears…
Read →Loan to a Director? Section 185 Bans It — With Four Narrow Escape Routes
A promoter wires ₹40 lakh from his private company to his own savings account to close on a flat, fully intend…
Read →Secretarial Standards SS-1 & SS-2: What They Are and Why They're Mandatory
SS-1 governs board meetings, SS-2 governs general meetings — and under Section 118(10) they're mandatory for n…
Read →Secretarial Audit (MR-3): Section 204 Applicability, Scope & the Peer-Review Rule
Secretarial audit under Section 204 applies to listed companies, public companies above Rs 50 cr capital or Rs…
Read →Rights Issue Procedure: Section 62(1)(a), Letter of Offer & Renunciation
A rights issue offers new shares to existing shareholders in proportion to their holding — by board resolution…
Read →Related Party Transactions: Section 188 Approvals, Thresholds & AOC-2
Every related-party transaction needs board approval; audit-committee approval where one exists; and a shareho…
Read →Reduction of Share Capital: Section 66 and the NCLT Route
Reducing share capital needs a special resolution and NCLT confirmation — the Tribunal protects creditors befo…
Read →Private Placement of Shares: Section 42, PAS-4, PAS-3 & the 200-Person Cap
Raise capital from select investors under Section 42: special resolution, PAS-4 offer letter, separate bank ac…
Read →MSME-1 Half-Yearly Return: Who Files, Due Dates & the 45-Day Rule
MSME Form 1 reports payments to micro & small suppliers delayed beyond 45 days. Due 31 Oct and 30 Apr. Even on…
Read →Mergers & Amalgamations Under the Companies Act: The NCLT Route, the Fast-Track Route, and How to Pick
Two founders want to collapse their holding company into its wholly-owned subsidiary to simplify the group bef…
Read →Independent Directors: Eligibility, IICA Databank, Tenure & Code
Who needs independent directors, the Section 149(6) independence test, mandatory IICA databank registration an…
Read →Increase Authorised Share Capital: SH-7, Section 61 & Stamp Duty
Raising your authorised capital takes an ordinary resolution and Form SH-7 within 30 days — plus stamp duty on…
Read →ESOPs & Sweat Equity: Section 62(1)(b), Section 54, Vesting & Limits
ESOPs reward employees with options under Section 62(1)(b); sweat equity rewards non-cash contributions under …
Read →Drafting & Maintaining Minutes: Section 118, Time Limits & Evidentiary Value
Minutes must be entered in the minute book within 30 days, signed correctly, never altered, and kept permanent…
Read →Dormant Company Status (Section 455): How to Park a Company Legally Without Striking It Off
A founder incorporates a company to hold a brand name and a future SaaS idea, then gets pulled into a differen…
Read →Dividend Declaration & IEPF: Sources, the 30-Day Rule & 7-Year Transfer
Dividends can only come from profits, never revaluation gains. Pay within 30 days; move unpaid amounts to the …
Read →DIR-12: Appointment & Resignation of Directors in 30 Days
Every director or KMP appointment, resignation, removal or designation change goes to the ROC in Form DIR-12 w…
Read →CSR Governance: Section 135, the 2% Spend & What "Unspent" Costs
CSR under Section 135 applies at net worth Rs 500 cr, turnover Rs 1,000 cr, or net profit Rs 5 cr. Spend 2% of…
Read →Private ↔ Public Conversion: Section 18, MGT-14, INC-27 & the Differences
Converting private to public needs 7 shareholders, 3 directors, a special resolution, MGT-14 and INC-27 — and …
Read →Conducting the AGM & EGM: Notice, Quorum, Proxies, E-Voting & Deadlines
The AGM rules: first AGM in 9 months, then within 6 months of year-end, max 15-month gap, 21 clear days' notic…
Read →Conducting a Valid Board Meeting: Notice, Quorum, Frequency & VC Rules
A valid board meeting needs 7 days' notice, the right quorum (one-third or two directors), four meetings a yea…
Read →CHG-1: Register a Charge in 30 Days & Why Day 121 Is a Cliff
Form CHG-1 registers a charge on company assets within 30 days. Miss day 120 and the charge is void forever — …
Read →Change of Registered Office: INC-22, INC-23, INC-28 & the Four Scenarios
Moving your registered office gets harder the further you go: within-city needs only INC-22; outside-city need…
Read →Buyback of Shares (Unlisted): Section 68, the 25% Ceiling & SH Forms
An unlisted company can buy back its own shares under Section 68 — within a 25% ceiling, a 2:1 post-buyback de…
Read →Bonus Issue of Shares: Section 63 Sources, Conditions & Process
A bonus issue capitalises reserves into fully paid-up shares for existing members — no cash changes hands. Per…
Read →Board Committees: Audit (s.177), NRC & Stakeholders Relationship (s.178)
The three statutory board committees: the Audit Committee (Section 177), the Nomination & Remuneration Committ…
Read →Auditor Appointment, Rotation & Removal: ADT-1, Sections 139-140
First auditor in 30 days, ADT-1 in 15. The 5-year term, when rotation (5/10 years) applies, the 5-year cooling…
Read →Appointment of KMP: Section 203 Thresholds for MD, CFO & CS
Section 203 forces listed companies and public companies with Rs 10 crore+ paid-up capital to appoint whole-ti…
Read →Alteration of MOA & AOA: Section 13, 14, MGT-14 and the Name-Change Route
Changing your company's objects, name or articles needs a special resolution and MGT-14 within 30 days. Name c…
Read →Corporate Governance Explained: How Companies Are Meant To Be Run
Why do some companies endure for generations while others collapse in scandal despite strong profits?…
Read →Director Duties Under the Companies Act, 2013: What Every Director Is Legally Bound To Do
Becoming a company director sounds like a badge of status. It is also a set of legal obligations that can carr…
Read →Annual Compliance for Companies: The ROC Filings You Cannot Miss
Registering a private limited company is the easy part. Keeping it compliant, year after year, is where most f…
Read →Annual Compliance for LLPs: The Filings Your Limited Liability Partnership Cannot Skip
Founders choose a Limited Liability Partnership (LLP) precisely because it promises lighter compliance than a …
Read →Trademark Registration in India: Protecting Your Brand the Right Way
Your brand name, logo, or tagline is often the single most valuable thing your business owns — more valuable, …
Read →Dematerialization of Shares: What Every Private Company and Shareholder Must Now Do
For decades, owning shares in a company meant holding a printed paper certificate — a document that could be l…
Read →Startup India Registration: How DPIIT Recognition Unlocks Tax Holidays and More
Founders often hear about "Startup India recognition" but treat it as a vanity badge. It is far more than that…
Read →Company Registration in India: A Step-by-Step Guide to Incorporating a Private Limited Company
Registering a private limited company is the moment a business idea becomes a formal legal entity — one that c…
Read →LLP Registration in India: A Step-by-Step Guide
When two or more people want to run a business together with limited liability but without the heavy complianc…
Read →GST Registration: Who Needs It, and How to Get It
For many small businesses and freelancers, the first big tax question is simple but stressful: "Do I need to r…
Read →Converting a Proprietorship or Partnership into a Private Limited Company
Why and how small businesses graduate to a private limited company - the legal routes, tax conditions for a sl…
Read →MSME / Udyam Registration: Benefits and the Step-by-Step Process
Who qualifies as a Micro, Small or Medium Enterprise, the free Udyam registration process, and the real benefi…
Read →Share Transfer in a Private Limited Company: Procedure and Form SH-4
How shares change hands in a private limited company - the role of Form SH-4, stamp duty, right of first refus…
Read →Striking Off a Company: A Step-by-Step Guide to Form STK-2
How to voluntarily close a defunct private limited company through Form STK-2 - eligibility, documents, the RO…
Read →Director Identification Number (DIN): Allotment, Annual KYC and Disqualification
What a DIN is, how to obtain it through SPICe+ or DIR-3, the mandatory annual DIR-3 KYC, and how directors get…
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