Compliance checklist for manufacturing companies

Manufacturing companies in India are subject to a complex regulatory landscape that spans corporate governance, taxation, labour laws, and environmental standards. Below is a summarized compliance checklist categorized by key operational areas.

1. Corporate & Secretarial Compliance

• Company Incorporation: Compliance with the Memorandum of Association (MOA) and Articles of Association (AOA).

• Board Meetings: Hold meetings as per the Companies Act, 2013; record and maintain minutes.

• Annual Filings:

  • AOC-4: Filing of financial statements.

  • MGT-7/MGT-7A: Annual return filing.

  • ADT-1: Appointment of an auditor.

• Director KYC: Annual DIR-3 KYC verification.

• Disclosure: Filing of MBP-1 (director interest) and DIR-8 (non-disqualification) during the first board meeting of each financial year.

2. Factory & Labour Law Compliance

• Factory License: Registration under the Factories Act, 1948 (for units with 10+ workers using power or 20+ without). Keep plans approved and license renewed.

• Working Hours: Maximum 48 hours/week and 9 hours/day. Maintain muster rolls and overtime registers.

• Health & Safety: Ensure machinery guarding, fire safety, and periodic health check-ups (especially for hazardous processes). Appoint a Safety Officer if employing 1,000+ workers.

• Social Security:

  • EPF & ESIC: Monthly contributions and ECR filings for eligible employees.

  • Minimum Wages: Adherence to state-scheduled minimum wage rates.

• Workplace Welfare: Compliance with the POSH Act, 2013 (Internal Complaints Committee), and provision of clean water, canteen, and restroom facilities.

3. Taxation Compliance

• GST: Registration, timely filing of GSTR-1 and GSTR-3B, and E-way bill generation for goods movement.

• Income Tax: Timely deposit of TDS (on salaries, contractors, etc.) by the 7th of the following month, and filing of quarterly TDS returns (e.g., Form 24Q).

• Professional Tax: Monthly deduction and remittance as per state-specific acts.

4. Environmental & Sector-Specific Laws

• Environmental Clearances: Compliance with the Water (Prevention and Control of Pollution) Act, 1974, and Air (Prevention and Control of Pollution) Act, 1981.

• Hazardous Waste: Proper management and disposal of industrial waste under the Hazardous Waste Management Rules.

• Sector-Specific Licenses: E.g., FSSAI (Food & Beverage), Drug Manufacturing License (Pharma), or BIS certifications (Electronics/Consumer goods) depending on your product.

5. Essential Routine Maintenance

• Registers: Maintain consolidated digital or physical registers for attendance, wages, leave, accidents, and hazardous materials.

• Audits: Conduct quarterly safety/payroll audits and annual statutory audits to ensure readiness for inspections.

Summary for Quick Reference: To maintain compliance, manufacturing units must prioritize Corporate Filings (AOC-4/MGT-7), Labour Law adherence (Factories Act/Labour Codes), Tax payments (GST/TDS/EPF/ESIC), and Environmental/Safety regulations. Regular internal audits are recommended to track changes in the regulatory landscape and avoid penalties.