The contribution of Companies, whether big or small, to the development and growth of a nation, is significant. The Central Government controls the functioning, development, financing, winding up of any private or public company, whether big or small, is controlled by the government. In order of this control by the government, parliament established The Companies Act in 1956. The Central Government reserves the right to scrutinize accounts of the companies, investigate the affairs of any company, and to direct the audits.
There are some statutory compliances that are mandatory for a company to comply with the concerned Registrar of Companies (ROC) throughout the year. Further, this compliance can be put into categories of (i) annual and periodic compliances, (ii) event-based compliances. The new Indian Companies Act was formed in the year 2013 that promulgated other new compliances to be made with the Registrar of Companies with the purpose of better facilitation and business management that could mount to transparent. It all is implemented for a perfect corporate governance. All compliances are mandatory and failure or delay in compliances with the Registrar of Companies would result in penalties, fines or imprisonment. Therefore, it is mandatory for the active companies located in India to adhere with these periodic and annual compliances with the Registrar of Companies properly and on time to defer any legal hassles that the company might incur.
Simultaneous adherence to the yearly or one-time compliance is not all. Non-compliance or delays may result in the company being liable for fines.
Event-Based Compliance are that mandatory compliance which are different than the mandatory periodical and annual compliances with the ROC and other regulatory authorities. These event-based compliances are related to any entertaining or unexpected activities, events, or new company size.
When registering a new business, business registration seems to be the most important part of it. However, if a limited private company is registered in terms of the Companies Act, 2013, there is a lot of adaptabilities that they need to make several times.
In stock, an event-based company adheres to the reporting and or the one-time, regular, or periodic agreements, both required by applicable or desirable laws, in order to remain legally binding and secure. All changes to any registered information associated with the company must be properly reported to the relevant ROC and other regulatory / legal authorities. Also, directors have the right to ensure that the company's operations do not deviate from the rules and provisions provided for in its MOA and AOA, a company operates in a completely reliable and trustworthy manner without committing any illegal or deliberate negligence of its obligations, in particular including disclosure of relevant information (to all persons and companies concerned) about its financial status and business operations.