In the everchanging landscape of Indian business, compliance is not just about annual filings but it is about navigating the myriad of legal obligations that arise with every significant change and event within your company. This is where Event-Based Compliance becomes crucial and Praman Advisors Private Limited stands as your reliable partner, ensuring your business remains compliant and avoids hefty penalties.
As a leading legal tech firm, Praman Advisors leverages cutting-edge AI and a team of seasoned professionals to offer seamless, accurate and efficient event-based compliance solutions. Let us delve into what this means for your business.
1. Overview:
Event-based compliances are specific legal and regulatory obligations that a company must fulfill upon the occurrence of certain "events" or changes within it’s operations. Unlike annual or periodic compliances, these are triggered by specific actions or alterations in a company's structure, management or financial status.
Common examples of events requiring compliance include:-
- Changes in Directorship: Appointment, resignation or removal of directors.
- Alterations in Share Capital: Issuance of new shares, transfer of shares, increase or decrease in authorized capital.
- Changes to Company Structure: Alteration of Memorandum of Association (MOA) or Articles of Association (AOA), change of registered office, conversion of company type.
- Key Managerial Personnel (KMP) changes.
- Creation or modification of charges on company assets.
- Declaration of commencement of business.
- Opening or closing of bank accounts and changes in signatories.
Failing to comply with these event-driven requirements within laid down timelines can lead to heavy penalties, legal complications and even disqualification of directors.
2. Benefits:
Partnering with an expert like Praman Advisors for event-based compliance offers a multitude of benefits:-
- Legal Validity and Avoidance of Penalties: Ensures all corporate actions are legally recognized, preventing fines, interest and legal actions from regulatory bodies like the Ministry of Corporate Affairs (MCA).
- Enhanced Transparency and Good Governance: Timely filings ensure all stakeholders (investors, regulators, employees) are aware of crucial corporate changes, fostering a culture of transparency and strong corporate governance.
- Increased Investor Confidence: Companies with a strong track record of compliance are viewed favourably by investors, making it easier to attract funding and secure future investments.
- Smooth Business Operations: Up-to-date records with the MCA are often a prerequisite for obtaining licenses, loans, participating in tenders or engaging in government contracts.
- Mitigation of Risks: Proactive compliance identifies and addresses potential legal and regulatory risks before they escalate, safeguarding the company's reputation and financial stability.
- Expert Guidance and Efficiency: Praman Advisors' specialized knowledge and AI-driven solutions streamline complex processes, saving your internal team valuable time and resources.
3. Documents Required:
The specific documents required will vary depending on the nature of the event. However, some common documents and information generally include:-
- Company's incorporation documents: MOA, AOA, Certificate of Incorporation.
- Board Resolutions: Approving the specific event (e.g. appointment of director, alteration of capital).
- Consent Letters/Resignation Letters: For changes in directorship or KMP.
- Share Transfer Deeds/Allotment details: For share-related changes.
- Amended MOA/AOA: If the articles or memorandum are being altered.
- Proof of New Registered Office Address: For changes in company address.
- Financial Statements and Annual Returns: May be required for certain filings.
- Identity and Address Proofs of new appointees/stakeholders.
- Digital Signature Certificate (DSC) of authorized signatories.
Praman Advisors will provide a tailored checklist of documents based on your specific event to ensure a smooth process.
4. Process to Apply:
Praman Advisors simplifies the event-based compliance process into a few easy steps:-
- Initial Consultation & Event Identification: You connect with Praman Advisors, discuss the specific corporate event that has occurred or is planned. Their experts will help you identify all relevant compliance requirements.
- Document Collection & Verification: Based on the identified event, Praman Advisors will provide a clear list of required documents. You submit these documents and their team meticulously verifies them for accuracy and completeness.
- Drafting & Preparation of Forms: Their legal and compliance experts will draft all necessary resolutions, forms (e.g. DIR-12, SH-7, MGT-14, PAS-3, INC-24) and supporting documents as per MCA guidelines.
- Filing with Regulatory Authorities: Praman Advisors takes care of the online filing of forms with the Ministry of Corporate Affairs (MCA) and other relevant regulatory bodies within the prescribed timelines.
- Follow-up & Confirmation: They will actively follow up with the authorities, address any queries and ensure successful processing of your compliance filings. You will receive confirmation and updated company records upon completion.
5. Fees and Timelines:
Praman Advisors is committed to transparent pricing and efficient service delivery:-
- Fees: The fees for event-based compliance services are competitive and depend on the complexity and nature of the event. We offer customized solutions and a detailed quote will be provided after the initial consultation.
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- Timelines: Adhering to statutory timelines is critical for event-based compliance. While specific deadlines vary per event (e.g. 15-30 days from the event date for most ROC filings), Praman Advisors' efficient processes and proactive approach aim to complete filings well within these periods, mitigating any risk of late fees or penalties. Our AI-driven solutions and rapid response times ensure your queries are addressed swiftly and filings are processed promptly.
