How Kanakkupillai Simplifies MCA Compliance?
Compliance

How Kanakkupillai Simplifies MCA Compliance?

6 Mins read

The Companies Act 2013 is an established legislation for corporate governance in India. All the companies incorporated in India have to comply with the requirements of the act, which is regulated by the Ministry of Corporate Affairs (hereinafter referred to as MCA). MCA is a government body controlled by the Central Government of India and is responsible for regulating corporate organisations to ensure compliance with the legal and regulatory framework of the country. MCA oversees the incorporation of corporate entities, enforces the provision of corporate laws on the companies, oversees the implementation of insolvency laws, and manages an online repository of corporate data through the MCA21 portal.

In this blog, we shall understand what are the key compliances of MCA, the penalties for not complying with the mandatory conditions and why choosing Kanakkupillai can save businesses from unnecessary headaches.

What is MCA Compliance?

MCA compliance refers to the legal and procedural requirements every company registered under the Companies Act 2013 must fulfil to operate its business in India. Mandatory filings include filing annual returns, maintaining statutory registers, conducting board meetings, etc.

Key Mandatory MCA Compliance Requirements

Here are some key compliances that every registered Company has to follow in India:

1. Annual General Meeting

The Annual General Meeting (AGM) is a mandatory yearly meeting at which the management of the company discusses its financial performance and future strategies with its shareholders. For existing companies, the AGM must be held within six months of the end of the financial year. The gap between the two AGMs cannot exceed 15 months, and for newly incorporated companies, the first AGM must be held within nine months from the end of the first financial year. After the AGM, companies have to submit their financial statement in Form AOC-4 within 30 of the AGM and their annual return in Form MGT-7 within 60 days of the AGM.

2. Maintaining Statutory Registers

Section 88 of the Companies Act 2013 mandates the maintenance of registers such as the Register of Members of the Company (MGT-1), Register of the Directors & Register of Managerial Personnel (MBP-1), Register of Charges (CHG-7), and Register of Debenture Holders. These registers must be updated regularly and kept at the company’s registered office. Companies are obligated to make these registers available for inspection by stakeholders and regulatory authorities upon request.

3. DIR-3 KYC

DIR-3 KYC is a mandatory annual compliance for directors holding a Director Identification Number (DIN) to verify their identity and contact details with the Ministry of Corporate Affairs (MCA). The KYC must be filed using Form DIR-3 KYC before September 30 of each year. Directors who fail to comply will have their DIN marked as “Deactivated” until the KYC is completed, along with applicable fees.

4. Filing of Event-Based Compliance

In some instances, a company must report an event or changes in the company timely to the Registrar of Companies (RoC). These events include changes in the registered office (Form INC-22), issuance of new shares (PAS-3), changes in directors (DIR-12), and amendments to the Memorandum or Articles of Association (MGT-14). Depending on the type of compliance, these filings must be made within 15 to 30 days of the event.

5. Compliance for Director Appointments and Resignations

Companies must follow proper compliance procedures for appointing or resigning directors. For a new appointment, Form DIR-12 must be filed within 30 days, along with the consent letter of the director and board resolution of the company. In the case of the Resignation of the Director, the company has to file Form DIR-12 to the RoC within 30 days from the date of resignation.

6. Auditor Appointment

The appointment of an auditor is a statutory requirement for companies. The Board of Directors must appoint the first auditor within 30 days of incorporation. For subsequent years, the appointment must be made at the AGM, with Form ADT-1 filed with the RoC within 15 days of the appointment. Auditors are appointed for a term of five years, subject to ratification at every AGM if required.

Penalties for Non-Compliance of MCA Requirements

Below are the penalties mentioned for non-complying with the mandatory requirements of MCA:

Sr. No. Compliance Penalty for Non-Compliance
1. Annual General Meeting (AGM)
  • Company: Fine up to ₹1,00,000.
  • Officers in Default: Fine up to ₹50,000 or imprisonment for up to 6 months or both.
  • And if default continues, the company is charged ₹5,000 per day.
2. Maintaining Statutory Registers
  • Company: Fine up to ₹1,00,000.
  • Officers in Default: Fine of ₹25,000 each imprisonment for up to 6 months or both.
3. DIR-3 KYC If DIR-3 KYC is not filed before the due date, the DIN is deactivated.
Reactivation: Late fee of ₹5,000 to restore the DIN.
4. Filing of Event-Based Compliance
  • Company: Additional fees of ₹100 per day for every day of delay in filing event-based compliance forms (e.g., INC-22, PAS-3).
  • Specific forms might attract other penalties as per relevant sections of the Companies Act.
5. Compliance for Director Appointments and Resignations
  • Company: Fine of ₹50,000 for failure to file Form DIR-12 (appointments) or DIR-11 (resignations) within the prescribed time.
  • Officers in Default: Fine up to ₹5,000 each.
6. Auditor Appointment
  • Company: Fine up to ₹1,00,000 for failing to appoint an auditor within the prescribed time.
  • Officers in Default: Fine up to ₹25,000 or imprisonment for up to 6 months or both.
  • If the default continues, an additional fine of ₹5,000 per day applies.

How Kanakkupillai Simplifies MCA Compliance?

Dealing with the Ministry of Corporate Affairs (MCA) rules and regulations can be overwhelming, especially for small businesses. Kanakkupillai makes this process a lot easier.  With our expertise and dedicated services, we help businesses stay compliant with all MCA requirements. We provide you:

  1. Expert Consultation: Kanakkupillai offers expert advice tailored specifically to your business. Whether you’re just starting or have been around for a while, our professionals take the time to understand your business and guide you through what you need to do to stay compliant. We make sure you fully understand your obligations and help you avoid mistakes.
  2. Timely Reminders: Keeping track of deadlines for things like filings and meetings can be tricky, but missing them can lead to heavy fines. Kanakkupillai sends you timely reminders about important deadlines so you never miss one. Whether it is for an Annual General Meeting (AGM) or any other mandatory filings, we ensure your business is always on time and avoids penalties.
  3. Document Preparation and Filing: Companies need to file lots of paperwork to stay compliant with MCA rules. Kanakkupillai handles the long and tedious document preparation for you. From preparing the required documents to submitting them to the MCA, we take care of everything so that you don’t have to worry about any forms being wrong or delayed.
  4. Technology-Driven Solutions: Kanakkupillai uses technology to make the whole process faster and more accurate. We have tools that track deadlines, ensure filings are done on time, and keep everything organized. This helps reduce mistakes and delays, so you can be sure everything is being taken care of properly.
  5. Cost-Effective Services: For many small businesses, hiring someone full-time to manage compliance can be expensive. Kanakkupillai provides affordable solutions that help you stay compliant without breaking the bank. We offer high-quality services at a price that fits your budget.
  6. Regular Updates on Regulatory Changes: The laws around business compliance can change frequently, which can be hard to keep up with. Kanakkupillai stays on top of all the updates and informs you when changes could affect your business. This way, you are always up to date with the latest rules, and your compliance strategies stay current.
  7. Customized Solutions: We understand that every business is different, and so are its needs. We offer services designed specifically for your needs. Whether your business is big or small, our solutions, approach, and advice are customized to make sure that you have the proper support and solution for your problem.
  8. Dedicated Support Team: Do you have doubts? Questions? Don’t Worry! Kanakkupillai’s team is always ready to help. Our 24/7 dedicated support team is there to help you out with your doubts and questions. With our guidance, you won’t be lost or overwhelmed by the vast compliance process. Trust us; we are here to help you!
  9. Risk Mitigation Non-compliance can result in fines and even legal trouble. Kanakkupillai helps you avoid these risks by making sure all your filings are done on time and correctly.

By providing all of these services, Kanakkupillai makes sure your business stays compliant with MCA rules without stress. They take care of the paperwork, deadlines, and legal requirements so you can focus on what matters most—your business.

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FAQs

1. What is MCA compliance, and why is it essential?

MCA compliance refers to the mandatory legal requirements under the Companies Act, 2013, essential for transparency and accountability.

2. Who is required to file MCA compliance?

All companies registered under the Companies Act 2013 must file MCA compliance.

3. What happens if a company fails to file annual returns?

Failure to file annual returns can lead to penalties, legal actions, and disqualification of directors.

4. How does Kanakkupillai assist with MCA compliance?

Kanakkupillai provides expert consultations, document filing, and comprehensive compliance management.

5. What is the penalty for late filing of financial statements?

Companies face a penalty of Rs. 100 per day of delay for late filing of financial statements.

6. Is Kanakkupillai suitable for small businesses?

Yes, Kanakkupillai offers cost-effective solutions tailored to the needs of small businesses.

7. What are event-based compliance requirements?

These include filings triggered by specific events, such as share transfers or changes in the registered office.

8. How does Kanakkupillai ensure timely compliance?

Kanakkupillai uses technology-driven solutions and sends timely reminders for all deadlines.

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