In India, there are several labor compliance requirements that companies must fulfill to ensure they are operating within the legal framework of the country. These requirements are in place to protect the rights of employees and to ensure fair and safe working conditions.
Some of the key labor compliance needs that companies must fulfill in India are as follows:
Employee Provident Fund (EPF): The EPF is a mandatory savings scheme for employees in India. Companies are required to contribute a certain percentage of an employee's salary to their EPF account each month. They must also file monthly and annual returns with the EPF authorities to ensure compliance.
Employee State Insurance (ESI): ESI is a social security scheme for employees in India that provides medical, disability, and other benefits. They must also file monthly and annual returns with the ESI authorities.
Professional Tax: Professional tax is a state-level tax that is levied on salaried employees. Companies must deduct professional tax from their employees' salaries and deposit it with the state government. They must also file periodic returns and maintain appropriate records.
Minimum Wages: Employers must ensure that they are paying their employees the minimum wage set by the state government. They must also maintain records of wages and hours worked, and submit periodic returns to the labor authorities.
Shops and Establishments Act: The Shops and Establishments Act is a state-level law that governs the working conditions of employees in shops, commercial establishments, and other businesses. Companies must register under this act and comply with its provisions, including provisions related to working hours, overtime, leave, and holidays.
Contract Labour (Regulation and Abolition) Act: This act regulates the employment of contract labor in India. Companies that employ contract labor must obtain a license from the labor authorities, maintain appropriate records, and comply with the provisions of the act, including provisions related to wages, hours of work, and working conditions.
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act: This act mandates the establishment of an internal complaints committee in companies with more than 10 employees to address complaints of sexual harassment at the workplace. Companies must also conduct regular awareness training on this issue for their employees.
Industrial Disputes Act: The Industrial Disputes Act governs the resolution of industrial disputes between employers and employees. Companies must comply with the provisions of the act, including provisions related to layoff, retrenchment, and closure of establishments.
We help companies operating in India comply with a range of labor compliance requirements to ensure that our clients are operating within the legal framework of the country. Failure to comply with these requirements can result in fines, penalties, and legal action, which can be detrimental to a company's reputation and finances. Therefore, it is essential for companies to stay up-to-date on labor laws and regulations and take the necessary steps to ensure compliance.
NGOs (Non-Governmental Organizations) are a crucial part of India's social sector, playing a significant role in addressing the country's developmental challenges. In India, NGOs are registered under the provisions of the Indian Trusts Act, of 1882, the Societies Registration Act, of 1860, or the Companies Act, of 2013.
The registration process and compliance requirements for NGOs in India are as follows:
Registration: NGOs can be registered under any of the three acts mentioned above. To register, an application must be made to the appropriate registration authority in the state where the NGO is based. The application must include a list of office bearers, a copy of the NGO's bylaws, and proof of address.
Obtaining FCRA Registration: If an NGO wishes to receive foreign funds, it must register under the Foreign Contribution (Regulation) Act, 2010 (FCRA). The FCRA registration process involves submitting an online application and supporting documents, such as the NGO's registration certificate, bank account details, and audited financial statements.
Compliance Requirements: Once registered, NGOs are required to comply with various regulatory requirements. These include:
Filing of Annual Returns: NGOs are required to file annual returns with the registration authority under the relevant act. The returns must include details of the NGO's activities and finances for the year.
Maintenance of Books of Accounts: NGOs must maintain proper books of accounts, including cash books, ledgers, and vouchers. These books must be audited annually by a qualified auditor.
Compliance with FCRA Regulations: NGOs that are registered under FCRA must comply with the various regulations under the act, such as the requirement to maintain separate bank accounts for foreign contributions, filing of annual returns with the Ministry of Home Affairs, and obtaining prior permission for foreign contributions.
Compliance with Income Tax Regulations: NGOs must comply with the income tax regulations and file annual tax returns. They may also be eligible for tax exemptions if they meet certain criteria.
Renewal of Registration: Registration of NGOs is usually valid for a specific period, after which it must be renewed. NGOs must submit an application for renewal along with the required documents and fees.
In conclusion, NGOs in India must register under the appropriate act and comply with the various regulatory requirements. Compliance with these requirements is essential to maintain the NGO's legal status, receive funding, and carry out their activities without any legal issues. It is important for NGOs to stay up-to-date on the changing regulatory environment and take the necessary steps to ensure compliance.
We help NGOs in registration, maintenance of proper records and compliance.
In India, companies are required to file various annual returns and forms with the Ministry of Corporate Affairs (MCA) and other regulatory authorities to comply with the legal and regulatory requirements.
Some of the mandatory annual filings that companies need to make in India are as follows:
Annual General Meeting (AGM): Companies are required to hold an AGM once every year, and file a copy of the AGM notice, minutes, and other relevant documents with the Registrar of Companies (RoC) within 30 days of the meeting.
Financial Statements: Companies are required to prepare and file financial statements, including balance sheets, profit and loss statements, and cash flow statements, along with the director's report and auditors' report, within 30 days of the AGM.
Annual Return: Companies are required to file an annual return with the MCA within 60 days of the AGM. The annual return contains details of the company's directors, shareholders, and share capital, among other information.
Income Tax Return: Companies are required to file an income tax return with the Income Tax Department by September 30 of the following financial year. The return should contain details of the company's income, expenses, and tax liability.
GST Return: Companies registered under the Goods and Services Tax (GST) Act are required to file monthly and annual GST returns with the GST authorities. The annual return should be filed by December 31 of the following financial year.
TDS Return: Companies that deduct tax at source (TDS) are required to file quarterly TDS returns with the Income Tax Department. The returns should contain details of the TDS deducted and deposited with the government.
Compliance Certificate: Companies with a paid-up share capital of more than Rs. 10 lakhs are required to obtain a compliance certificate from a practicing company secretary and file it with the ROC within 30 days of the AGM.
Director's Report: Companies are required to prepare a director's report, which contains details of the company's operations, financial performance, and future plans. The report should be filed along with the financial statements and annual return.
Secretarial Audit Report: Companies with a paid-up share capital of more than Rs. 50 lakhs are required to obtain a secretarial audit report from a practicing company secretary and file it with the ROC.
In conclusion, companies in India are required to make various mandatory annual filings to comply with legal and regulatory requirements. Non-compliance with these filings can result in penalties, fines, and legal action. It is, therefore, essential for companies to stay up-to-date with the filing deadlines and comply with the necessary regulations to avoid any legal issues. We help companies in meeting the requirement of mandatory filings in India.