ROC Annual Filing For Start-Ups In India | Ebizfiling

 

Introduction

As a result of expanding start-up culture, India has evolved into a start-up hub. Many entrepreneurs and founders enter into the start-up ecosystem nowadays, to create a profitable business. These companies begin with small capital and minimal resources, but they probably grow to the point where managing various duties becomes difficult.

The majority of company owners view legal matters as a duty that only involves completing paperwork and formalities, and that's why they put off ROC filing for later stages. Because of this, 80% of companies fail or are forced to close their doors during the first stage of laying a foundation for their business. So let us discuss the importance of compliance for start-ups.

What is ROC compliance?

In the context of business, "ROC compliance" refers to mandatory annual filing of the company which are incorporated under the Companies Act, 2013. Any company that has a separate legal entity needs to register with ROC and to maintain its legal responsibilities, generally to safeguard the welfare and health of others. Any change in name or director or winding and so on by the company needs to be filed with ROC. Simple examples of ROC compliance include filing your taxes on time and getting a business license from the Ministry of Corporate Affairs (MCA).

The importance of legal compliance

 

  • The most important outcome of ROC filing is that it lowers your risk of facing fines, penalties, layoffs, legal action, or even the closure of your company and simultaneously builds companies' reputations in the Indian market.

 

  • One important feature of compliance is being able to highlight your accomplishments in your marketing materials and on your website when you complete your legal compliance. For instance, if the company writes about the policies, rules, and regulations on their website, it will encourage more people to apply or build business relations with other companies.

 

  • Legal compliance is important to create a secure and professional workplace. For instance, the company invest a lot of effort in selecting and recruiting the best applicants for their team. Therefore, regardless of the size of the company, start-ups must insist that all new hires sign employment contracts that include certain conditions like confidentiality, IP ownership, non-compete, etc. Also polices regarding POSH, discrimination on basis of caste, race, and gender. etc.

Conclusion

The main objectives of a start-ups are to make money and maintain competitiveness in the Indian market. It might be challenging to address the legal requirements for operating a business smoothly while you're trying to remain ahead. But legal compliance in India, functions as the chariot wheel that drives and maintains the company.

 

  

Comments

Post a Comment

Popular posts from this blog

All About ITR 6 Company Annual Filing | Ebizfiling

Image
    Introduction     If a company does not eligible for an exemption under Section 11 of the Income Tax Act of 1961, it must file an ITR 6 Form electronically to file its income tax returns. It is an annual compliance for a Private Limited Company . The companies that receive income from real estate held for charitable or religious purposes are eligible to seek an exemption under Section 11 ((Income from property held for charitable or religious purposes) of the Income-tax Rules. Therefore, companies that do not claim tax exemption under section 11 have to file an ITR 6.       What is ITR 6 form?     The ITR 6 form is an electric form filed by companies that do not claim an exemption under section 11 of the Income Tax Rules. It is a form that represents the company's income and expenses for the specific year. It is a mandatory compliance that a Private Limited Company has to file annually.     Who is qualified for filing ITR 6 form?     The following are eligible for filing ITR 6 f
Read more

How Professional Employer Organizations (PEO) are helpful for new emerging start-ups?

Image
  Introduction      Professional Employer Organizations (PEO) with experience in the local markets can assist the business to improve and grow. A person who wants to expand a freshly formed business in a foreign country needs some time to do market research, understand local consumer trends, and get to know the demands of the public. A PEO functions under the co-employment idea, which enables you to delegate tasks to multiple companies. In this blog, we will talk about- How PEO benefits your start-up?   What is a PEO (Professional Employer Organization)?      A full-service co-employment human resource outsourcing structure is referred to as a PEO ( Professional Employer Organization ). They usually act as professional employers for the employees of their clients.  When the client company reports its salary using the PEO's federal employer identification number (FEIN), employee obligation is transferred to the PEO.  In this arrangement, the PEO oversees payroll and other administra
Read more

Incorporation of a new Limited Liability Partnership | Ebizfiling

  Introduction     Many individuals desire to become their own boss and gain freedom by starting their own businesses but it requires a lot of effort to do so. Limited Liability Partnerships are the right choice as it provides the features of the company structure and partnership firm. Incorporating your business as LLP is a very simple process as it consists of 5 steps. Keep reading this blog and you will get to know the process of incorporating a new LLP.     What is a Limited Liability Partnership?     A Limited Liability Partnership is a combination of a company structure as well as a partnership firm. LLP also limits the liability of partners to the capital amount contributed by them and that is governed by LLP Agreement. The incorporation, compliance and other regulation are governed by the Companies Act, 2013 and LLP agreement created at the time of LLP registration as per the Limited Liability Act, 2008.     Requirement for incorporation of LLP     There should be a minimum o
Read more