On this page:
What are the statutory compliances required for a Private Limited Company?
What are the requirements of Annual Corporate Filings in India?
What are the annual filing requirements of a Foreign Subsidiary in India?
What are the requirements of Indian Information Technology Act of 2000?
What are the requirements of Directors of an Indian Company in India?
All the companies doing business in India are required to
comply with laws and regulations of India. All the companies
who are related cyber business are required to comply with
the requirements of the law.
In addition, all the
Multinational Companies Doing Business in India and having
cyber involvement are required to comply with the corporate
and other laws of India including cyber law compliance.
A private limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Private Limited Company, at east once every year. For details see: Corporate Compliance in India
A private limited company is required to file documents with ROC annually. For more details see: Annual Corporate Filings in India. Also see: Corporate Compliance Programs for Companies Doing Business in India
A Subsidiary of a foreign company in India is generally a private limited company. It is required to file documents with ROC annually. For more details see: Annual Corporate Filings in India. Also see: Corporate Compliance Programs for Companies Doing Business in India
The cyber law mandates all companies to have an information technology security policy. This documents the architecture of the network, the roles and responsibility of employees, security parameters and authorization required for data access, among other things. Other compliances that are required include relate to retention and authentication of electronic records and security of data.
Moreover, Indian Information Technology Act of 2000 provides
for further personal liabilities. For example, Section 85(1)
of the IT Act provides that where a person committing a
contravention of any of the provisions of this Act or of any
rule, direction or order made there under is a Company,
every person who, at the time the contravention was
committed, was in charge of, and was responsible to, the
company for the conduct of business of the company as well
as the company, shall be guilty of the contravention and
shall be liable to be proceeded against and punished
accordingly.
The proviso to section 85 (1) provides
that such person will not be liable for punishment if he
proves that the contravention took place without his
knowledge or that he exercised all due diligence to prevent
such contravention.
Section 85(2) of the IT Act
provides that where a contravention of any of the provisions
of this Act or of any rule, direction or order made there
under has been committed by a company and it is proved that
the contravention has taken place with the consent or
connivance of, or is attributable to any neglect on the part
of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer
shall also be deemed to be guilty of the contravention and
shall be liable to be proceeded against and punished
accordingly.
The explanation to section 85 provides
that the expressions “company” means any body corporate and
includes a firm or other association of individuals and the
expression "director", in relation to a firm, means a
partner in the firm.
All the Indian companies and all
foreign companies doing business in India, either directly
or indirectly, should comply with this law.
In some instances the directors and members of a company can
be personally held liable. The following provisions of the
Indian Companies Act, 1956 provide that the Members or the
Directors/officers of a company will be personally liable
if:
1.A company carries on business for more than six
months after the number of its members has been reduced
below seven in the case of a public company and two in the
case of a private company. Every person who was a member of
the company during the time when it carried on business
after those six months and who was aware of this fact, shall
be severally liable for all debts contracted after six
months,
2.The application money of those applicants
to whom no shares has been allotted is not repaid within 130
days of the date of issue of the prospectus, then the
Directors shall be jointly and severally liable to repay
that money with the prescribed interest ,
3.an
officer of the company or any other person acts on its
behalf and enters into a contract or signs a negotiable
instrument without fully writing the name of the company,
then such officer or person shall be personally liable,
4.The court refuses to treat the subsidiary company as a
separate entity and instead treat it as only a branch of the
holding company,
5.In the course of winding up of the
company, it appears that the business of the company has
been carried on with intent to defraud the creditors of the
company or any other person or for any fraudulent purpose,
al those who were aware of such fraud shall be personally
liable without any limitation of liability.
Annual Filings and Corporate Compliance in IndiaIT is mandatory for companies in India to do annual filings and to set up corporate compliance program, if required. For annual filings and for setting up your company compliance program, contact us. Also see: Annual Corporate Filings in India |
Services Offered by UsMadaan & Co. has helped foreign companies, including USA Companies, in setting up their operations in India. A careful tax planning is required before opening a subsidiary, branch, joint venture, project office or liaison office in India. Click here to Contact us for setting up company in India |
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Our lawyers include those admitted to bar in the United States of America and India. They have undertaken legal maters in the USA, India and Europe. They understand the multi-cultural and the multi-jurisdictional aspects of international business in this age of globalization. They include those educated at Harvard Law School, Harvard University in the USA and premier universities in India. They believe in high moral and legal ethics. |
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