The Ministry of Corporate Affairs (MCA) governs the functioning of companies, Limited Liability Partnerships (LLPs), and other corporate entities in India. Compliance with MCA regulations is essential to ensure that businesses operate legally and maintain good standing with regulatory authorities. Here is a detailed guide to MCA compliance in India.

Key MCA Compliance Requirements

1. Company Registration:

   • All businesses, including private and public companies, must be registered with the MCA under the Companies Act, 2013. The registration process includes obtaining a Certificate of Incorporation.

2. Filing of Annual Returns and Financial Statements:

   • Form AOC-4: Filing of financial statements, including balance sheets and profit and loss statements, within 30 days of holding the Annual General Meeting (AGM).
   • Form MGT-7: Filing of annual returns, which contains details of shareholders, directors, and other company information, within 60 days of the AGM.

3. Appointment of Directors:

   • Companies are required to have a minimum number of directors (usually two for private companies and three for public companies).
   • Any change in directors must be reported to the MCA using Form DIR-12.

4. Director’s Report and Financial Statements:

   • Directors are required to submit a Director’s Report during the AGM. This report should include the company’s performance, disclosures, and financial statements.

5. Compliance with Corporate Governance:

   • Companies must follow corporate governance practices, especially if they are listed, including the composition of the Board, audit committees, etc.

6. Change in Company Name or Objects:

   • If a company wants to change its name or business objectives, it must file a special resolution with the MCA using Form MGT-14.

7. Filing of Charge and Mortgages:

   • If a company borrows money or creates any charge or mortgage over its assets, it is required to file this charge with the MCA through Form CHG-1.

8. Compliance with CSR (Corporate Social Responsibility):

   • Companies meeting the criteria for CSR must file details of their CSR activities and expenses in the CSR Report, which is a part of the Director’s Report.

9. XBRL Filing for Financial Statements:

   • Large companies are required to file their financial statements in XBRL format, which is an XML-based format for financial reporting.

Penalties for Non-Compliance with MCA Regulations

1. Fines:

   • Penalties for late filings or non-compliance can include fines ranging from ₹50,000 to ₹5,00,000, depending on the offense and company size.

2. Inability to Conduct Business:

   • Companies may face restrictions on conducting business if they fail to meet MCA compliance deadlines, including suspension of business activities or disqualification of directors.

3. Director Disqualification:

   • Directors of companies failing to comply with MCA regulations may face disqualification from being directors in other companies.

4. Striking Off of Company:

   • If a company fails to file returns or meet compliance requirements for a long period, the MCA can strike off the company from its register, making it non-existent.

Key MCA Forms for Compliance:

• Form DIR-12: For appointment or removal of directors.
• Form AOC-4: For filing annual financial statements.
• Form MGT-7: For filing annual return.
• Form MGT-14: For filing special resolutions.
• Form GNL-2: For filing resolutions and agreements.
• Form INC-22: For notification of the registered office address.

How We Help with MCA Compliance:

• We assist in the entire process of MCA registration, filings, and compliance, ensuring that your business adheres to all legal requirements and avoids penalties. From annual filings to corporate governance practices, we provide expert support to keep your company in good standing with the Ministry of Corporate Affairs.