In today’s corporate world, it’s difficult to examine which company obeys legal rules and regulations and which refuse to follow the set of guidelines and ethics policies put forth by the Ministry of Corporate Affairs (MCA). Companies who comply with legal obligations have higher credibility as compared to others who do not take company compliance seriously.
Moreover, acknowledging the importance of company compliance and various jurisdictions is more like building a better opportunity for your companies. If your company fails to keep up to date with the applicable laws and requirements, it may incur a variety of fines, from one-time fees to tax penalties. So, one should ensure that you stay in compliance at all times.
What is Compliance?
Under Companies Act 2013, when it comes to running a business, complying with all the relevant laws is the foremost thing to execute. The company compliance is the formation and set of guidelines and specifications which is generally developed for companies in various industry. Compliance enable giant investors to encompass regulations and government legislation. As the government is continuously incorporating pressure on the corporate structure to get their pending compliance done before the due dates and imposing huge charges. Every business should obey at least the internal laws and follow company policies which can vary from business to businesses. If you follow these rules, it will help you to grow smoothly without any extra charges from regulatory authorities.
Why compliance is important?
Timely compliance with all appropriate laws, regulations and policies will benefit the organization by keeping things flowing sleekly, reducing fines and penalties and help in maintaining a trustworthy position in the industry. There are a few mandatory compliances and some event-based compliances. Not fulfilling these can lead to the company being struck off from the Register of Companies of India. This can hamper a company’s ability to conduct business within and outside the country.
It also decreases a company’s credibility and affects the chances of getting loans or funding. Becoming compliant helps in reducing additional legal charges and improves operations and safety. Whether you own a small business or large establishment, company compliance is mandatory for all and varies as per the type of company incorporated.
You can visit us at the Company Wizard for help with your annual compliance and check which compliance you still have to meet at The Company Check.
