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Event-Based Compliances in a Company

Event-based compliance under the Companies Act, 2013, with the assistance of Darshan Corporate experts, is a convenient and flawless process. We help you file all the compliance reports on time and handle all the regulatory compliances.

What is Event-Based Compliance in a company?

Event-based compliance in a company refers to the practice of ensuring that an organization adheres to relevant laws, regulations, and industry standards by monitoring and responding to specific events that may indicate non-compliance. Event-based compliance focuses on real-time monitoring activities and data to check compliance issues as they occur.

Event-based compliances are met upon a certain event occurrence and submit all the necessary information to the Registrar of Companies (RoC). These are mostly applied to unexpected duties, and new aspects of the business.

When a company is registered with the RoC according to the Companies Act, 2013, event-based compliance is necessary for any event including change in directors, change in MoA or AoA, change in registered office, or change in share capital.

Event-based compliance is generally applied to an LLP or corporation. These compliances are important to notify the RoC for each event or change in the company.

The compliances are one-time obligations by the laws and should be taken care of by the company's board of directors. It is mandatory to report these compliances to the Registrar within a particular time for any changes or event occurrence.

There are two types of Event-based compliance:

  • Annual RoC compliance
  • RoC event-based compliance

Let’s understand these compliances in detail:

Annual ROC compliance

Annual ROC compliance refers to the set of regulatory and statutory obligations that every company needs to fulfill on an annual basis to manage its legal status with the regulatory authorities.

The following aspects of Annual RoC compliance:

  • Annual financial statement: Companies are required to submit annual financial reports including balance sheets, income, cash flow statements, etc. These statements are audited by a qualified auditor.
  • Director’s report: The Director’s report is part of annual compliance. This report consists of the information on company’s performance, financial status, and future perspective.
  • Compliance with tax obligations: Companies must be compliant with all tax obligations including annual tax returns, etc. This also includes providing documentation to support the company’s tax filings.
  • Filing of other annual reports: Annual compliance also involves additional annual reports or compliance requirements of the relevant industry.

ROC Event-based compliance

  • RoC event-based compliance that a company must have the requisite documentation and resolutions to notify the Registrar about the changes. Any unlawful failure to disclose the correct information regarding such changes may lead to criminal prosecution of the company and its directors.
  • These compliances are one-time, quick, or intermittent reporting, which are mandated by relevant laws to remain legally safe and secure.
  • The timing and accuracy of the Event-based compliance depend upon the kind and nature of the transaction. In case of any default, the company and the employees are liable to be panel provisions.
  • Non-compliance will lead to a constitutive penalty in commercial terms and other non-monetary penalties. It is crucial to complete compliance on time to avoid penalties and fines.

Here are a few examples:

  • Change in directors
  • Modification in MoA & AoA
  • Appointment or resignation of the director, managing director, or partner.
  • Updating and maintaining official records and registers
  • Change in statutory auditors
  • Issuance or transfer of shares
  • Change in the name of the company
  • Increase or change in authorized capital
  • Modification in the registered office address
  • Minutes or decisions of the board/ general/ committee meetings
  • Change in the signatories of the bank
  • Removal or appointment of the auditor
  • Filing of annual returns
  • Filing of financial statement
  • Preparation of the director’s report
  • Annual General Meeting (AGM)
  • ITR and audit requirements
  • Private placement
  • Credit monitoring

Some forms are concerned with the Event-Based Compliance:

Compliance description
Form for filing
Declaration of commencement of the company
Within 180 days of such commencement of the company
Modification in the Registered office
Within 15 days from the change in address of the registered office
Change in company’s name
Within 60 days from the application in INC-1
Conversion of the business
KYC of the directors
On or before 30th April of the coming financial year
Change in the board of directors or KMP
Within 30 days of KMP change
Removal of any board of director
Within 30 days of passing the resolution for removal
Increase in share capital
Within 30 days from the date of ordinary resolution passing.
Filing of agreements
Before the end of 30 days from passing resolution
Increase in paid-up share capital
Before the end of 15 days from the allotment of share capital
Change in secured borrowings
Within 30 days of adjustment of any type of charge
Remission of delay
Filing of application for Remission with relevant documents
Made deposits
Filing form by the 30th of June of every year and providing fully audited information by the company’s auditor by March 31st of the same year.
The significant beneficial owner reported
Within 30 days from receipt of BEN-1

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