Companies Act 2013
In 2026, compliance under the Companies Act, 2013 has moved toward a "compliance by design" model. The Ministry of Corporate Affairs (MCA) uses its V3 portal to automatically track deadlines, and the cost of non-compliance has significantly increased through automated daily penalties.
Legal services in Company Law ensure that a company maintains its status as a "Separate Legal Entity" and protects its directors from personal liability.
Annual Compliance (The "Golden Trio")
Every Private Limited Company must complete these three filings every year, regardless of whether they did any business:
- Financial Statements (Form AOC-4): This contains the Balance Sheet, Profit & Loss Account, and the Auditor's Report. It must be filed within 30 days of the Annual General Meeting (AGM).
- Annual Return (Form MGT-7): A summary of shareholding patterns, changes in directorship, and details of meetings held. It must be filed within 60 days of the AGM.
- Director's KYC (DIR-3 KYC): A mandatory annual update for every person holding a Director Identification Number (DIN). Failure to file this by September 30th results in the DIN being "Deactivated" and a penalty of ₹5,000.
Event-Based Compliance
These are legal filings triggered by specific actions within the company:
- Change in Management: Filing Form DIR-12 when a director is appointed or resigns.
- Change in Registered Office: Filing Form INC-22 if the company moves to a new address.
- Share Capital Changes: Filing Form PAS-3 for the allotment of new shares or SH-7 for increasing authorized capital.
- Charge Management (Loans): Filing Form CHG-1 when the company takes a secured loan from a bank to register the "charge" on its assets.
Board and Shareholder Meetings
Company Law requires a formal "paper trail" of how decisions are made. Legal services assist in:
- Board Meetings: At least 4 meetings must be held every year (one per quarter), with no more than 120 days between two meetings.
- General Meetings (AGM/EGM): Drafting notices, agendas, and recording the Minutes of the meeting, which are the permanent legal record of company decisions.
Specialized Legal Services
Beyond routine filings, company law experts provide high-level strategic support:
- Drafting the AoA and MoA: Customizing the "Constitution" of the company to allow for specific business goals or investor protections.
- NCLT Representation: Representing the company before the National Company Law Tribunal (NCLT) for matters like:
- Insolvency and Bankruptcy (IBC).
- Oppression and Mismanagement disputes between shareholders.
- Compounding of offenses (settling past legal mistakes).
- Mergers & Acquisitions (M&A): Legal due diligence to ensure the target company has been compliant with all laws before a buyout.
- Closure of Company (Strike Off): Assisting in the formal closure of a company via the STK-2 form to ensure directors are not held liable for "zombie" companies.