As a director of a company, you have a wide range of responsibilities. In this presentation, we'll explore the key legal and fiduciary duties, regulatory compliance requirements, business planning and strategy development responsibilities, financial oversight and management, and stakeholder management duties that are part of your job as a director.
For companies registered in India after November 2019, having a share capital, it is necessary to obtain a commencement if business certificate before commencing any business or exercising the borrowing powers. The commencement of business certificate must be obtained within 180 days of incorporating a Company.
In case the individual fails to obtain this certificate, there is a penalty of Rs. 50,000 for the company Rs. 1000 per day for the directors for each day of default.
Every registered Indian company is obligated to designate a statutory auditor within 30 days of its incorporation. Failure to do so will result in the company being prohibited from commencing business operations. Additionally, the company will incur a penalty of Rs. 300 per month for non-compliance.
Income tax returns must be submitted by the 30th of September every Assessment year.
Private limited companies that are registered must submit MCA Form AOC-4 by the 30th of November each Assessment year. Not doing so will result in a penalty of Rs. 200 per day for each day of delay.
You must submit MCA Form MGT-7 by December 31st, every Assessment year. If you fail to do so, you'll be charged a penalty of Rs. 200 for each day of delay.
All the directors of the company must be filed for the DIN eKYC or DIR-3 eKYC. In DIR-3 eKYC, the Director must provide a unique personal mobile number and a personal email address. There's a penalty of Rs. 5000 in case of failure to file DIN eKYC.
For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the Financial year.
Preparation of the Directors report will be done with all the information required under Section 134.
Apart from the yearly paperwork, directors are responsible for ensuring that the company complies with other requirements whenever certain events happen.Change in the authorized capital or the paid-up capital of the company.
Therefore, it's essential for Company Directors to ensure timely compliance with these responsibilities.
All companies are required to maintain accounts and prepare financial statements at the end of each financial year. Our Compliance Director will help your company maintain accounts and will prepare the financial statement for your business at the end of financial year.
Companies are required to conduct a minimum of four board meetings, an annual general meeting, Directors Report and Annual Report each financial year.
Annual General Meeting should be held by a company within 6 months from the end of that financial year. And MCA annual return must be filed on or before September 30th. Our Compliance Manager will prepare all the documents and file your company’s MCA annual return.
Income tax return of a company must be filed irrespective of income, profit or loss. Hence, even dormant companies with no transactions are required to file income tax return each year. Our Compliance Manager will prepare all the documents and file your company’s income tax return.
Directors in a company have several key responsibilities, primarily aimed at ensuring the company operates legally, ethically, and in the best interests of its stakeholders. Above are the major compliances to be taken by the Company Director.
Manage and motivate employees to achieve work targets
Communicate with shareholders effectively and act in their best interests.
Foster effective collaboration with partners, including suppliers, customers, and other stakeholders.
“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”
Prepared On: 17/10/23
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