🏛️ Board Meeting – Mandatory Legal Requirement for Every Company

Compliance Updates 2026 Live

Board Meetings

Under Companies Act, 2013: The Foundation of Corporate Governance

A Board Meeting is not just a gathering; it is a statutory mandate. It is where the vision of a company meets the rigor of law. Failure to comply is no longer an option in the modern regulatory era.

📅 Frequency Requirements

Public / Private Limited:
Min 4 Meetings per year.
Gap must not exceed 120 days.

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Small Company / OPC:
Min 2 Meetings per year (one in each half calendar year).

👥 Quorum & Notice

Notice: Minimum 7 Days prior notice is mandatory to all directors.

Quorum: Minimum 2 Directors or 1/3rd of total strength (whichever is higher).

🧾 Key Decisions & Compliance

• Financial Statements
• Opening Bank Accounts
• Taking Loans / Investments
• Auditor Appointment
• Minutes Preparation
• ROC Documentation

⚠️ Risk of Non-Compliance

Ignorance of Board Meeting protocols can lead to heavy penalties on both the Company and its Directors, including disqualification in severe cases.

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🏢 Company Deposit Rules – What Every Business Owner Must Know

● Compliance Alert 2026

Company Deposit Rules: What Every Director Must Know

Avoid heavy penalties and ensure your business funding is legally compliant.

In the landscape of Indian Corporate Law, how you bring money into your company matters more than how much you bring in. Under the Companies Act, 2013, simple loans can often be misclassified as "Deposits," triggering massive legal headaches.

📌 What exactly is a "Deposit"?

Simply put, a deposit is any money received by a company as a loan or advance. However, the law provides specific exemptions. If your funding doesn't fall into an "Exempt" category, it's a deposit—and deposits come with heavy strings attached.

✅ Safe (Exemptions)

• Loans from Directors (from own funds)
• Loans from Shareholders (Pvt Ltd)
• Loans from Banks/NBFCs
• Inter-corporate loans

⚠️ Risk Area (Deposits)

• Loans from outsiders
• Public funding without circulars
• Unadjusted business advances (>365 days)

🚨 The Price of Non-Compliance

The Ministry of Corporate Affairs (MCA) does not take deposit violations lightly. The consequences are severe:

• For the Company: Minimum fine of ₹1 Crore or twice the deposit amount.
• For Directors: Up to 7 years of imprisonment plus personal fines.

📋 Mandatory Compliance Checklist

Requirement	Action Item
DPT-3 Filing	Annual return of deposits/exempted loans.
Director Declaration	Must confirm funds are not borrowed.
Repayment Reserve	Liquid funds kept for repayment.

Need Expert Structure for your Director Funding?

Don't wait for an MCA notice. Get your DPT-3 filings and loan agreements vetted by professionals.

Gururaaja Sanjay & Co, Chartered Accountants

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🏛️

MCA Compliance Relief Scheme 2026

Huge Fee Waiver for Defaulting Companies!

The Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). This is a golden opportunity to regularize pending ROC filings at a fraction of the usual cost.

📅 Scheme Period

15 April 2026 — 15 July 2026

Action is required within this 3-month window to avoid prosecution.

💰 Major Benefits

📝

AOC-4 & MGT-7
Only 10% additional fees

💤

Dormant Status
50% reduced filing fees

❌

Company Strike-off
Only 25% of filing fees

🛡️

Legal Immunity
Safe from prosecution

Feature	Regular Penalty	CCFS-2026 Price
Additional Fees	₹100 / Day	90% Discount

Need Help with ROC Compliance?

Our team of experts will handle your filings quickly and cost-effectively.

📞 Call Us:

+91 77602 52581

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📊 SEBI RIA Registration – Individual vs Company / LLP: Which is Right for You?

Planning to start your Investment Advisory practice? SEBI RIA registration is mandatory if you charge fees for financial advice. Choosing the right structure is critical for long-term growth and compliance.

🔹 Option 1: Individual RIA

Eligibility:
• Net worth: ₹5 lakh
• NISM certification mandatory
• Minimum qualification & experience required

Government Fees:
• Application fee: ₹5,000
• Registration fee: ₹10,000

Pros:
✔ Low setup and compliance cost
✔ Faster approval process
✔ Ideal for independent advisors and beginners

Cons:
✖ Limited scalability
✖ Lower brand credibility compared to firm structure
✖ Difficult to onboard multiple advisors

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🔹 Option 2: Non-Individual RIA (Company / LLP)

Eligibility:
• Net worth: ₹50 lakh
• Separate Principal Officer & Compliance Officer required

Government Fees:
• Application fee: ₹25,000
• Registration fee: ₹5,00,000

Pros:
✔ High credibility and professional image
✔ Suitable for scaling wealth management business
✔ Ability to build advisory team and larger client base

Cons:
✖ Higher initial cost
✖ More compliance and audit requirements

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💰 Additional Costs to Consider (Both):
• NISM Certification
• Professional fees for application & compliance
• Infrastructure and compliance setup

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🎯 Professional Insight:
• Individual RIA is best for solo advisors starting practice
• Company / LLP RIA is ideal for building a scalable wealth advisory firm

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💼 We provide complete support including:
• Eligibility assessment
• Net worth certification
• SEBI application filing
• Documentation and compliance setup

📞 CA Ramakrishna Sanjay
📱 +91 77602 52581

📊 SEBI RIA Registration – Start Your Investment Advisory Firm Legally

 

Are you planning to offer stock market, mutual fund, or portfolio advisory services for a fee?
Then SEBI Registered Investment Adviser (RIA) approval is mandatory.

✅ Why SEBI RIA Registration matters:
• Build high credibility and investor trust
• Charge professional advisory fees legally
• Start your own wealth advisory or financial planning firm
• Comply with SEBI regulations and avoid penalties

⚙️ Key eligibility:
• Company / LLP with ₹50 lakh net worth
• Qualified Principal Officer with NISM certification
• Proper compliance and documentation framework

🎯 Where expert support makes the difference:
SEBI approval involves structuring, net worth certification, documentation, and regulatory submission.
Professional handling ensures faster approval and zero compliance gaps.

💼 Our end-to-end support includes:
• Entity structuring (LLP / Company)
• Net worth certification
• Complete SEBI application filing
• Documentation and compliance setup
• Query handling till final approval

🚀 If you are a Wealth Advisor, Fintech, or Financial Consultant, this is the right time to obtain your SEBI RIA license and scale your practice.

📞 Contact us today to start your SEBI RIA registration.

CA Ramakrishna Sanjay
+91 7760252581

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Director Loan vs Share Capital – Which is Better for Private Limited Companies?

 

💼 Funding Your Private Limited Company? Choose the Right Structure

Promoters often face a strategic decision: introduce funds as Director Loan or Increase Share Capital. Each route has distinct implications on tax efficiency, compliance, ownership, and financial strength.

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🔹 Director Loan – Key Advantages

✅ Quick fund infusion – Immediate after Board approval
✅ No dilution of ownership – Promoter control remains intact
✅ Tax benefit – Interest paid is deductible under Income Tax
✅ Flexible repayment – Can be repaid anytime as mutually agreed
✅ Lower initial compliance cost

⚠️ Considerations:
• Annual DPT-3 filing mandatory
• TDS on interest required (if interest paid)
• Increases company liabilities

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🔹 Share Capital Increase – Key Advantages

✅ Strengthens net worth – Improves financial credibility
✅ No interest burden – Improves cash flow stability
✅ Better for long-term growth
✅ Preferred by banks and investors

⚠️ Considerations:
• Higher compliance – SH-7, PAS-3, MGT-14 filings
• Stamp duty & ROC costs apply
• Ownership dilution possible

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📊 Strategic Recommendation

✔ Short-term funding → Director Loan is efficient
✔ Long-term growth & funding credibility → Share Capital is ideal
✔ Growth companies often start with loans and convert to equity later

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📞 Professional support for Company Funding Structuring, ROC Compliance & Tax Planning

CA Ramakrishna Sanjay
+91 7760252581

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📊 Why You Should Choose OPC Company Registration in India?

Looking to start your business with full control and corporate benefits?

A One Person Company (OPC) offers the perfect balance between professional credibility and operational simplicity.

Here’s why OPC is a smart strategic choice compared to Proprietorship and Private Limited Company:

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🔹 OPC vs Proprietorship – Why OPC is Better

✅ Limited Liability Protection
Your personal assets remain safe. In proprietorship, personal and business risks are the same.

✅ Separate Legal Identity
OPC has its own legal status. Proprietorship does not. This improves trust with clients and banks.

✅ Higher Business Credibility
OPC structure enhances brand value and improves eligibility for loans and tenders.

✅ Business Continuity
OPC continues even in case of owner’s incapacity through nominee provision.

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🔹 OPC vs Private Limited Company – Why OPC is Better

✅ Single Owner Control
No need for multiple shareholders. Full ownership remains with you.

✅ Lower Compliance Burden
No AGM requirement. Fewer procedural formalities compared to Pvt Ltd.

✅ Lower Compliance Cost
Annual compliance and professional fees are significantly lower.

✅ Ideal for Small and Professional Businesses
Perfect for consultants, freelancers, and solo entrepreneurs.

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🔹 Key Benefits of OPC

✔ Limited Liability
✔ Separate Legal Entity
✔ Full Ownership & Control
✔ Better Market Reputation
✔ Easy Conversion to Pvt Ltd in Future

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💼 Best Suitable For:

• Consultants
• Freelancers
• IT Professionals
• Startup Founders
• Service Providers

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📌 Professional Insight

OPC is a strategic upgrade from proprietorship, offering protection and credibility, while avoiding the heavier compliance burden of a Private Limited Company.

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📞 Thinking of registering your OPC? Get expert assistance today.

CA RAMAKRISHNA SANJAY
+91 7760252581

#OPC #CompanyRegistration #StartupIndia #Entrepreneur #BusinessSetup #CorporateCompliance

How to Incorporate an LLP: A Quick & Simple Guide

Starting a business with partners? A Limited Liability Partnership (LLP) is a great option—flexible, easy to manage, and offering limited liability protection. Here’s a quick walk-through of how to incorporate one.

1. Get Your Partners’ DIN & DSC Ready

Every designated partner needs a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). These are essential for signing and filing documents online.

2. Choose a Unique Name

Propose your LLP name through the RUN-LLP service on the Ministry of Corporate Affairs portal. Make sure the name is unique and not too similar to an existing business.

3. File the Incorporation Form

Submit the FiLLiP form (Form for Incorporation of LLP) online with details like:

• Proposed business activity

• Registered office address

• Partner details
  This gets filed with the Registrar of Companies.

4. Draft the LLP Agreement

This document defines how your LLP will work—roles, profit sharing, rights of partners, etc. Once drafted, upload it in Form 3 within 30 days of incorporation.

5. Receive Your Certificate of Incorporation

Once everything is approved, you’ll receive the LLP Incorporation Certificate—and your LLP is officially born!

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Final Tip: Keep your documents ready, choose your business partners wisely, and follow the steps in sequence. Incorporating an LLP is simpler than most people expect!

Pooja B S
+ 91 7760 252581
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📌 What is E-Invoicing?

 

🧾 E-Invoicing under GST – Applicability & Key Insights

E-Invoicing is a system where GST invoices are electronically authenticated by the Government’s Invoice Registration Portal (IRP).

Once uploaded, the IRP generates:

• ✅ Invoice Reference Number (IRN)

• ✅ QR Code

• ✅ Auto-reporting to GST portal & E-Way Bill system

This ensures real-time reporting and transparency in GST compliance.

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👥 Who is Required to Comply?

E-Invoicing is applicable based on aggregate turnover in any financial year since FY 2017-18:

Turnover	Applicability
Above ₹5 Cr	✅ Currently Applicable

📢 Therefore, businesses with turnover exceeding ₹5 Crore must issue E-Invoices for B2B transactions.

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📄 Transactions Covered

✔ B2B Invoices
✔ Export Invoices
✔ Credit Notes & Debit Notes

❌ Not applicable for:

• B2C invoices

• Composition dealers

• SEZ units (as notified exemption in specific cases)

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⚠️ Important Compliance Risk

An invoice issued without IRN (when applicable):

🚫 Considered INVALID under GST
🚫 ITC may be denied to recipient
🚫 Penalty exposure and compliance risk

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🎯 Business Impact

✔ Improves GST compliance
✔ Reduces reconciliation issues
✔ Faster ITC availability
✔ Enhances credibility and transparency

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🤝 Professional Support

Need assistance in implementing E-Invoicing seamlessly?

📍 https://share.google/aOzL0ZYXlgKBzSjib
📞 +91 77602 52581

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🌍 Moving Abroad? Don’t Ignore Your EPF – It Can Cost You Money

If you are planning to settle abroad for work, your Employees’ Provident Fund (EPF) needs immediate attention. A strategic decision now can prevent loss of interest and future complications.

🔎 Key facts you must know:

✅ EPF does NOT close automatically
Your account remains active, but no further contributions can be made once you stop working in India.

⏳ Interest stops after 3 years
EPF earns interest only for 3 years after last contribution. After that, it becomes inoperative and earns ZERO returns.

💰 Withdrawal can be completely tax-free
If you have completed 5 years of continuous service, the entire withdrawal — contribution + employer share + interest — is fully exempt from tax in India.

🌐 Possible transfer to foreign social security
If India has a Social Security Agreement (SSA) with your destination country, your EPF period may help in foreign pension eligibility.

⚠️ Expert recommendation:
If you are settling abroad permanently, it is advisable to withdraw and close your EPF account early to avoid loss of interest and administrative challenges.

📌 Strategic takeaway:
EPF is a powerful retirement asset — but only if managed proactively. Ignoring it after moving abroad can result in dead money earning no returns.

📞 Need assistance with EPF withdrawal, tax treatment, or NRI compliance?

7760252581
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Appointment of Auditor — Casual Vacancy Due to Death

When a statutory auditor passes away during their term, the vacancy is treated as a casual vacancy under Section 139(8) of the Companies Act, 2013. ✅ The Board of Directors is empowered to appoint a new auditor within 30 days ✅ No shareholder approval or EGM is required ✅ The appointed auditor holds office until the next AGM ✅ Form ADT-1 must be filed with ROC after appointment This provision ensures continuity in statutory audit and protects compliance timelines. If your company faces such a situation, timely Board action and proper documentation are critical for regulatory compliance. Need guidance on Board resolutions, filings, or audit compliance? We’re here to help.

📌 PF & ESI Compliance — New Company with No Employees

A newly incorporated private limited company often receives PF and ESI registration along with incorporation. A common question is — are returns mandatory even when there are no employees?

Here’s the compliance clarity:

✅ PF (EPF)
If there are no employees or no PF-eligible wages, monthly contribution filing is not required. However, the employer should regularly log in and maintain correct establishment status to avoid compliance alerts.

✅ ESI
Once registered, Nil contribution filing is expected even if there are zero employees. This keeps the portal compliance status clean.

⚖ Threshold Rule
PF normally applies at 20+ employees and ESI at 10+ employees. But once registration is active, compliance continues until formally closed — even if employee count drops.

👉 Best practice: Maintain payroll records, portal hygiene, and file Nil ESI returns where applicable to avoid notices.

Need help managing statutory compliance? Professional guidance ensures smooth operations from day one. 
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📢 Appointment of Auditor — Casual Vacancy Due to Death

When a statutory auditor passes away during their term, the vacancy is treated as a casual vacancy under Section 139(8) of the Companies Act, 2013.

✅ The Board of Directors is empowered to appoint a new auditor within 30 days
✅ No shareholder approval or EGM is required
✅ The appointed auditor holds office until the next AGM
✅ Form ADT-1 must be filed with ROC after appointment

This provision ensures continuity in statutory audit and protects compliance timelines.

If your company faces such a situation, timely Board action and proper documentation are critical for regulatory compliance.

Need guidance on Board resolutions, filings, or audit compliance? We’re here to help.


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RBI Proposal: Compensation for Small-Value Banking Fraud — What Customers Should Know

 The Reserve Bank of India has proposed a framework to compensate customers for small-value fraud losses — up to ₹25,000 — arising from unauthorized online banking, UPI, or card transactions.

Key highlights:

✔ Proposed compensation ceiling: ₹25,000
✔ Covers small-value digital fraud cases
✔ Draft framework to be released for public feedback
✔ Focus on reducing customer hardship
✔ Strengthening digital payment safeguards

RBI is also reviewing rules around mis-selling, recovery practices, and customer liability — aiming for stronger consumer protection and clearer accountability.

Why this matters:

Digital payments are growing rapidly. A standardized compensation mechanism improves trust, reduces disputes, and ensures faster relief for affected customers.

Stay vigilant. Report fraud immediately to maximize protection.

— Financial awareness builds financial security.

Who can be the 'Karta' of HUF

A HUF is a family made up of all people who are descended from a common ancestor, including their wives and unmarried daughters. HUF is a person under section 2(31) of the Income tax act, 1961.

 

Who is a ‘Karta’?

"Karta" is a term used to describe the main family member and is traditionally passed down through males.

The Karta holds a position of authority over the other members and has full authority over property, rituals, and other matters.

The senior most member of the family assumes position of Karta of HUF.

 

Whether a minor can become the Karta of HUF?

A junior member cannot become Karta of the Family as long as a senior member is available. A junior member of the HUF can only become Karta of the HUF if all the coparceners agree to the junior member occupying the managerial position. If a minor is the only one left to be manager, he can do so as long as a capable guardian represents him.

 

Whether a female member can become the Karta of HUF?

“If a male member of a Hindu Undivided Family (HUF), by virtue of his being the first-born eldest, can be a Karta, so can a female member”

Held by Delhi high court a case of Mrs. Sujata Sharma Vs Shri Manu Gupta.

 

The traditional Hindu view, recognises only male inheritors to ancestral property. These views are based on treatises such as Dharmshastra and the Mitakshara school of law.

However , the amendments to the Hindu Succession Act in 2005 introduced section 6.  By virtue of this section , even women members get the same rights as male members. The Section 6 is reproduced below.

On and from the commencement of the Hindu Succession (Amendment) Act, 2005 (39 of 2005), in a Joint Hindu family governed by the Mitakshara law, the daughter of a coparcener shall,

(a) by birth become a coparcener in her own right the same manner as the son;

(b) have the same rights in the coparcenery property as she would have had if she had been a son;

(c) be subject to the same liabilities in respect of the said coparcenery property as that of a son, and any reference to a Hindu Mitakshara coparcener shall be deemed to include a reference to a daughter of a coparcener.

Conversion of OPC into Private/Public Company

 

One Person Company (OPC) is a private limited company that has only one member, as opposed to private companies, which must have a minimum of two members, and public companies, which must have a minimum of seven members.

The conversion of a One Person Company (OPC) to other forms of the Company (Private Limited Company or Public Limited Company), is provided under Section 18 of the Companies Act of 2013 and Rule 6 of the Companies (Incorporation) Regulations of 2014.

 

When OPC is to be converted into a Private/public limited Company?

1)   Voluntary Conversion:

A voluntary conversion into a private/public limited company is not permitted unless two years have passed since the incorporation of the OPC.

However, if the One Person Company’s share capital exceeds Rs. 50 lakhs or its average turnover exceeds Rs. 2 crores, the One Person Company (OPC) may convert itself into a private limited company within two months.

In the event of a voluntary conversion, the One Person Company (OPC) must notify the Registrar of Companies (ROC) using form INC-5 within 60 days.

 

 

2)   Mandatory/Compulsory Conversion:

A One Person Company (OPC) must convert to Private/Public in the following scenarios:

Paid-up share capital exceeds Rs. 50 lakhs or the yearly turnover of the three most recent fiscal years is more than two crores rupees.

This conversion must be completed within 6 months of the date when the paid-up capital exceeds Rs. 50 lakhs or the related period when the average annual turnover exceeds Rs. 2 crores.

 

Amendment Effective From 1st April 2021

A One Person Company, may be converted into a Private or Public Company by increasing the minimum number of members and directors to two or seven members and two or three directors, as the case may be, and maintaining the minimum paid-up capital as required by the Act for such class of company, and by complying with Section 18 of the Act for conversion.

When Social Auditing Standards are mandatory?

The Social Audit Standards (SASs) will apply when an independent social audit of a Social Enterprise is to be performed,

The Institute of Chartered Accountants of India (ICAI) has published 16 Social Audit Standards.

 

When these standards are mandatory?

While conducting the social audit for "social enterprises" listed on the "social stock exchange," social auditors must comply with the requirements of SASs.

 

Five Elements of Social Audit

There are five elements of a social audit engagement.

1)    A three-party relationship involving a social auditor, a responsible party, and intended users;

2)    Project/ Program/ Intervention to be covered;

3)    Project Monitoring Framework;

4)    Evidence; and

5)    A written audit report

Know about 16 Social Audit Standards

When an independent social audit of a Social Enterprise is to be performed, the Social Audit Standards will apply.

The Institute of Chartered Accountants of India (ICAI) has published 16 Social Audit Standards.

This Social Audit Standard is concerned with the theme of "eradicating hunger, poverty, malnutrition, and inequality."

Below are the 16 Social Audit Standards that Social Auditors must follow while doing social audits commencing on or after 14^th January 2023.

 

i)  SAS 100: Hunger, Poverty, Malnutrition, and Inequality:

ii) SAS 200: Promoting health care (including mental health) and sanitation, as well as making safe drinking water available

iii) SAS 300: Education, employability, and livelihood promotion

iv) SAS 400: Gender equality, women's empowerment, and LGBTQIA+ communities

v) SAS 500: Ensuring environmental sustainability, addressing climate change (including mitigation and adaptation), and conserving forests and wildlife.

vi) SAS 600: National heritage, art, and culture protection

vii) SAS 700: Promotion of rural sports, nationally recognised sports, Paralympic sports, and Olympic sports through training.

viii) SAS 800: Supporting incubators of social enterprises

ix) SAS 900: Supporting other platforms that strengthen the non-profit ecosystem in fundraising and capacity building

x) SAS 1000: Promoting livelihoods for rural and urban poor including enhancing

xi) SAS 1100: Slum development, affordable housing, and other interventions to create more sustainable and resilient cities

xii) SAS 1200: Disaster management, including disaster relief, rehabilitation, and reconstruction.

xiii) SAS 1300: Financial Inclusion Promotion

xiv) SAS 1400: Facilitating disadvantaged communities' access to land and property assets

xv) SAS 1500: Bridging the digital divide in internet and mobile phone access, addressing issues of misinformation and data protection

xvi) SAS 1600: Improving the well-being of migrants and refugees

 

 

CRYPTOCURRENCY : DISCLOSURE REQUIREMENT UNDER REVISED SCHEDULE III

Cryptocurrency is the newly emerging digital currency in the world. It uses blockchain technology. Countries all over the world have not accepted it as a digital currency. Recently, a country called ‘El Salvador’ has declared “Bitcoin” (the first cryptocurrency ever known) as its official currency. There is no particular regulatory body to govern the transactions in cryptocurrencies. In India, the Ministry of Corporate Affairs has taken steps to require Companies to disclose their transactions in cryptocurrencies in their financial statements.

 

These changes in the reporting requirements have to be disclosed for the financial year 2021-22 and onwards. These charges are expected to bring more transparency to the financial statements.

 

The following details or information are to be provided in the financial statements of a Company.

Sl.No.	Particulars	FY 2021-22	FY 2020-21
1	Profit or loss on transactions involving Cryptocurrency
2	Amount of Cryptocurrency held as at the reporting date
3	Deposits/advances received by any persons to trade or to invest in cryptocurrency

✍

CA Ramakrishna Sanjay