Under companies’ act 2013, rules and regulations are made so that the company is run and managed appropriately and lawfully. Registrar of Companies (ROC) is administered by the ministry of corporate affairs. With 22 registrars of companies all over the world, the central government exercises administrative control with the help of Regional Directors.
We have two types of Compliances and they are as follows:
1. Annual compliance
2. Special Compliances
Some of the merits for regular ROC compliance are:
- Saves Penalty: To avoid heavy penalties which can be as high as 12 times the normal fee, filling of forms regular compliances is necessary.
- Safe from strike off: If any company fails to register under the act of regular compliances for 3 years in a row then a heavy fine will be imposed and the process of restoration or activation of the company name can cost lakhs.
- Maintaining company status active: From taking finance loans to tenders and having third-party inspections, ROC helps the company in maintaining active status.