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Event-Based Compliances

It is extremely important for companies and firms that are functioning in India to abide by the laws and regulations. Aside from the yearly compliances, there are particular compliance requirements that must be met when certain events or transactions occur during the lifespan of a company. This article will furnish a complete guide to help businesses understand the requirements of these event-based compliances in India. Proper comprehension of these compliance regulations is crucial to avoid charges and consequences, and maintain favorable relations with the authorities.

  1. Making sure all legal requirements are followed before and after a company is formally established is crucial. This includes following proper procedures for forming a company as well as ensuring that all necessary documents are filed with government agencies. Failure to comply with these regulations can result in serious legal issues for the company and its owners. Therefore, it is essential to take all necessary steps to ensure complete compliance.

In order to file necessary paperwork with regulatory authorities, every potential director of the company needs to acquire a Digital Signature Certificate (DSC).

To establish a business, one must reserve an exclusive name for their company beforehand by utilizing the Ministry of Corporate Affairs (MCA) website.

During the process of incorporation, it is necessary to prepare, sign, and submit the Memorandum of Association (MOA) and Articles of Association (AOA) of the company to the Registrar of Companies (RoC).

The MOA and AOA require payment of stamp duty, which is determined by the authorized share capital of the company.

2. Allotment and Transfer of Shares

2.1. Distribution of Stocks: A corporation, upon distributing new stocks, is required to adhere to the relevant guidelines of the Companies Act of 2013, in addition to other affiliated regulations. The corporation must complete and record the essential paperwork with the Registrar of Companies (RoC), furnish share certificates to the individuals who received the allotment, and maintain accurate records of their distribution.

2.2. Shares Transfer: The corporation is responsible for obeying the transfer provisions outlined in the MOA, AOA, and the Companies Act, 2013, when existing shares are transferred from one shareholder to another. The transfer must be documented appropriately, and all required forms and documents must be filed with the RoC.

3. Changes in Capital Structure

If a company intends to raise its authorized share capital, it must adhere to the process described in the Companies Act, 2013. This includes passing a special resolution, submitting appropriate forms to the RoC, and paying the required stamp duty.

In order to issue bonus shares or split existing ones, companies are required to follow the applicable rules stated in the Companies Act, 2013. This includes submitting the necessary forms and paperwork to the RoC, as well as keeping accurate records of the bonus issue or stock split.

If a company wants to decrease its share capital, it must follow the steps outlined in the Companies Act of 2013. This includes receiving consent from shareholders, obtaining approval from the National Company Law Tribunal (NCLT), and submitting the required documentation to the Registrar of Companies (RoC).

4. Changes in Board of Directors

4.1 In order to appoint new directors, the company must adhere to the rules outlined in the Companies Act, 2013. This involves getting approval and a Director Identification Number (DIN) from the potential directors, carrying out a thorough investigation of them, submitting required documents to the Registrar of Companies (RoC), and keeping the company’s records and files up to date.

4.2 If a director steps down or is dismissed, the company must adhere to the guidelines outlined in the Companies Act of 2013. This involves completing and submitting the required paperwork to the Registrar of Companies, maintaining accurate records, and complying with applicable regulations.

4.3. Modification in Director’s Interest: In case any alteration occurs in the director’s involvement, like a change in the ownership stake or role as a director in other firms, he/she needs to inform the company and the RoC about it for transparency.

5. Change in Registered Office

If a company decides to modify its registered office address, it must adhere to the guidelines of the Companies Act, 2013. This necessitates acquiring consent from shareholders, informing the RoC, making a general announcement, and submitting all required paperwork to the RoC.

6. Modifications made to the Constitution and other important records

6.1 Any changes made to the company’s MOA and AOA must adhere to the regulations outlined in the Companies Act, 2013. The company must pass a special resolution, complete the required paperwork with the RoC, and keep its records updated.

6.2 Modifying other important documents, such as partnership agreements, LLP agreements, or trust deeds, must comply with the laws that regulate those entities.

7. Merger, Acquisition, and Amalgamation

If a company intends to unite with or gain control of another company, it is required to adhere to the guidelines set forth in the Companies Act of 2013 and any applicable legislation. Such guidelines include securing approval from shareholders and creditors, submitting the required paperwork and forms to the RoC and NCLT, and adhering to other regulatory stipulations.

The evaluation and examination of shares or assets that are part of a merger or acquisition is a crucial aspect of following regulations. Businesses must carry out thorough investigations, hire unbiased evaluators, and adhere to the valuation rules set by the appropriate regulatory bodies.

After the completion of a merger or acquisition, the company is required to make certain updates to its records, registers, and filings with the RoC in order to remain compliant. These updates may involve making changes to the MOA, AOA, registers of members, directors, and charges, and obtaining new certificates of incorporation and share certificates if necessary.

8. Winding Up and Dissolution

8.1 If a company chooses to shut down by its own decision, it is required to abide by the specifications stated in the Companies Act of 2013. This consists of obtaining consent from shareholders, designating a liquidator, informing the RoC, and submitting the appropriate paperwork and documents.

8.2. Required Liquidation: If the creditors or tribunal initiate the winding up process, the company must adhere to the procedures specified in the Companies Act 2013. This includes submitting the mandatory forms and documents, appointing a liquidator, and following the tribunal’s instructions.

Once the process of concluding the company has been finished, the next step is to request the closure and dissolution of the business. This entails submitting the essential paperwork and records to the RoC, making a public announcement, resolving any outstanding debts, and obtaining the ultimate dissolution certificate.


Event-based regulations are highly important in guaranteeing that firms and companies in India adhere to legal and regulatory standards. Businesses can evade penalties and maintain a favorable rapport with regulatory institutions and stakeholders by grasping and conforming to event-based regulation stipulations. Keeping up to date with legal and regulatory changes is essential for businesses to follow through with event-based regulations effectively and in a timely manner. Engaging expert advice and assistance can assist businesses to navigate the intricate nature of event-based regulations and ensure compliance within legal boundaries.