The act of complying with the requirements, standards, or regulations that are set by the legal authorities. Meeting the compliances is very important for the organizations to avoid penalties, late fees, and interests. Compliances include paying taxes regularly in time, getting the necessary business registration, carrying out audits, etc.
Meeting the internal and the external compliances is very important. As to be successful organizations must take the steps to ensure that every staff member is complying with the internal policies. But it is also necessary to ensure that as an entity it is necessary to comply with the external law and the regulation related to the industry and laid down by the Act.
As the business grows the compliance requirement also grows considerably. The requirements to comply with the legal laws and the company policies also vary from business to business. Following and acting responsibly in the legal and ethical environment adds to the value of the organization which will save a lot of time, effort, and money.
Are a set of rules that include the specifications, policies, and laws ensuring that an organization is following the rules and standards for the industry or the institution by the respective authority. The rules that govern the organizations are usually set by the government or the parliamentary legislation or through the government authorities for organizational, social, environmental, and economic betterment. The norms and rules are related to various issues such as economic, public interest, and the environment.
The regulatory compliances ensure the efficiency and accountability of the product. Regulatory compliances also provide benefits to some sections of the society that include the laborers, employees by protecting the indemnities of the employer. They improve the credibility of the organization by raising them as socially and environmentally responsible entities in the market. They ensure whether the industry standards are followed or not with proper technologies. The entity must be in range with the regulatory compliances as they may have to face penalties by the concerned authorities.
For an entity to function well it is necessary to streamline for the company to be streamlined and organized with the proper norms and the regulations that are set. These regulations are extended to every possible aspect, including the company's interaction with the employees and the finances. This is known as statutory compliance.
Statutory compliance is relevant to the various labor and taxation laws that are prevailing in India. These laws change on a state and national level and the companies must follow them. Non-compliance here can lead to penalties, fines, and even legal trouble. It is very important to have a sound understanding of the various labor and taxation laws in India.
Payroll is the total amount the employer is paying to the employees, payroll function involves the pay policy of the organization that includes flexible benefits, leave encashment policy. Payroll processing and HR Management is a highly complex task for various small businesses in India. By outsourcing payroll and HR management to IndiaFilings, an individual can enjoy a stress-free and error-free payroll cycle.
The Employee provident fund is the scheme for the Indian employees that are regulated under the Employee Provident Fund Organization which is popularly known as the EPFO. An establishment with 20 or more than 20 employees in India can apply for PF registration.
The employers having a PF registration need to file the PF returns monthly. The PF return filings are filed by the 25th of each month.
ESI is managed and regulated under the Employee State Insurance Corporation an autonomous body under the Ministry of Labour and Employment, Government of India. Any factory or establishment that has employed more than 10 employees with a minimum salary of Rs.21,000 has to be mandatorily under the ESIC.
The registered office of the company in India will determine the domicile of the company (state of Incorporation). The ROC will be determined by the state or location in which the registered office of the company is located. In case there is a change of address in the registered office of a company the ROC must be notified within 15 days. To change the Office address it should be earlier intimated to the ROC.
In a Private Limited Company, the director plays an important role as he is responsible for the day-to-day decisions that are made by the Directors. To add a director to the company first you need to get the consent of the director, obtain his DIN and the DSC.
A director in the company may want to resign or the board of Directors may want to remove a Director. This can be done by filing a resignation letter or also intimating the ROC.
As every business requires money in the short and the long term. A short-term need can be met by taking loans and advances. But for meeting the long-term needs they will need to increase the authorized capital of the Company.
For a Company, the ownership is decided by the shareholding of the Company. For inducting new investors or transferring the ownership of the company, the shares of the company need to be transferred. The company’s interest could be sold to attract new investors or to pass the control of the company.
The process of making amendments in the MOA of the company is a complex and extensive one, it is necessary to take professional care during this process which can be done through IndiaFilings.
Winding up is Dissolving a Company, the Company ceases to do business as usual. The sole purpose here is to sell off the stock, pay the creditors and distribute the assets that are remaining amongst the Partners or the shareholders.
Regulatory compliances are important to protect the consumers and society. The violation of this is not only financial in the form of penalties but it can also lead to jail. The regulatory compliances create pressure on the companies which has also led some companies to bankruptcies. Compliance with regulation is important due to the following reasons.
It is necessary to adhere to the statutory compliances for all the big and small business setups to keep their businesses away from legal troubles. It is better to have deep knowledge of the statutory compliances to minimize the risk that is associated with the non-compliance. All countries shave their own set of state and central labor laws the companies need to adhere to. The statutory compliances are beneficial for all the employees, employer, and the organization.
For the employees, the compliances make sure that they receive fair treatment and get their dues on time. They also ensure that the working conditions for the employees are satisfied and well managed.
For the organization and the employer, it helps in maintaining the clarity of the rules and the regulations. This saves the organization from the penalties and legal actions. And in turn, a trustworthy and safe environment is created.
Last updated: Dec 17, 2021