Compliance certificate

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2015 Dear Experts please explain me what kind of companies require to file compliance certificate under companies Act, 2013.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 November 2015 'Compliance Certificate' is not in Companies Act,2013. But the annual return (e-Form MGT-7) of 'certain companies' has to be certified by a CS.

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2015 Dear experts please explain what kind of company required to get certified MGT-7 from company secretary.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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19 July 2024 Under the Companies Act, 2013, certain companies are required to obtain a compliance certificate from a Company Secretary in Practice (CS) and file it with the Registrar of Companies (RoC). This compliance certificate affirms that the company has complied with all the provisions of the Companies Act, 2013 and rules made thereunder during the relevant financial year. Here are the key categories of companies that require to file a compliance certificate:

1. **Listed Companies**: All listed companies (companies whose shares are listed on a recognized stock exchange) are required to obtain a compliance certificate from a CS and file it with the RoC annually.

2. **Public Companies**: Public companies with a paid-up share capital of Rs. 10 crore or more are also required to obtain a compliance certificate and file it with the RoC annually.

3. **Companies with Specific Borrowings**: Companies that have borrowed money from banks or financial institutions exceeding Rs. 50 crore are required to obtain a compliance certificate.

4. **Certain Private Companies**: Private companies having a paid-up share capital of Rs. 50 crore or more or turnover of Rs. 200 crore or more during the preceding financial year need to obtain a compliance certificate.

The compliance certificate ensures that the company has complied with various statutory requirements, including holding of board meetings, general meetings, maintenance of statutory registers, filing of annual returns, financial statements, and other disclosures as required under the Companies Act, 2013.

The compliance certificate is typically issued in the prescribed format and needs to be signed by a Company Secretary in Practice after conducting a thorough audit of the company's compliance status. It serves as an assurance to the RoC and stakeholders that the company has adhered to the legal requirements mandated under the Companies Act, 2013.

It's important for companies falling under these categories to ensure timely compliance with the requirement of obtaining and filing the compliance certificate, as failure to do so can lead to penalties and other legal consequences.

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