Company Compliance Health Check

What is Company Compliance Health Check?

A Company Compliance Health Check is a structured review of a company's statutory filings, regulatory obligations, and internal governance records to identify gaps, lapses, and potential penalty exposures. Conducted by qualified professionals, it covers MCA filings, income-tax and GST returns, labour law registrations, and secretarial records under the Companies Act, 2013. The output is an actionable remediation report.

Every company incorporated in India operates under a matrix of statutory and regulatory obligations spread across multiple authorities. The Companies Act, 2013 mandates timely filings with the Registrar of Companies, including annual returns, financial statements, and event-based forms for changes in directors, registered offices, share capital, and charges. Separately, the Income Tax Act, 1961, the Goods and Services Tax framework, and applicable labour laws such as the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and the Employees' State Insurance Act, 1948, impose their own reporting and deposit obligations. A Company Compliance Health Check is a diagnostic exercise that systematically examines every layer of this obligation matrix to produce a clear picture of where the company stands and what remedial action is required. The need for such a review arises most acutely at specific inflection points: when a company is being prepared for external investment, when it is undergoing a merger or acquisition, when the founders are contemplating a change in structure, or when the company has operated informally and grown faster than its compliance infrastructure. Investors and acquirers conduct their own due diligence, and undisclosed compliance gaps discovered during that process can delay transactions, reduce valuations, or result in liability being attributed to the founders. A proactive health check allows the company to identify and remediate issues before they surface in an adverse context. The review covers several distinct domains. On the Ministry of Corporate Affairs side, the professional examines whether all annual returns in Form MGT-7 or MGT-7A and financial statements in Form AOC-4 have been filed within the prescribed deadlines, whether all event-based filings such as Form DIR-12 for changes in directors, Form PAS-3 for allotments, Form SH-7 for increases in authorised capital, and Form CHG-1 for creation of charges have been completed accurately and within time. Any missed filing triggers additional fees under Section 403 of the Companies Act and potentially prosecution under Section 137 or 92. The income-tax review verifies that all advance tax instalments have been paid on time, that TDS deducted from employee salaries, contractor payments, and rent has been deposited by the applicable due dates, that TDS returns in Forms 24Q and 26Q have been filed, and that the annual income-tax return under the applicable form has been submitted. Lapses in TDS compliance attract interest under Sections 234A, 234B, and 234C and penalties under Section 271C. The GST review covers timely filing of GSTR-1, GSTR-3B, and GSTR-9 annual returns, accurate reconciliation of input tax credit claimed against GSTR-2B, and compliance with e-invoicing obligations where applicable based on the company's aggregate turnover. The review also examines whether the company has obtained all required registrations, including Professional Tax registrations in applicable states, Shop and Establishment Act registrations, and EPF and ESI registrations once the headcount thresholds are crossed. Secretarial compliance, including the maintenance of statutory registers such as the Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, and minutes books for Board and general meetings, is also examined. Non-maintenance of these registers attracts penalties under the Companies Act. The output of the health check is a structured compliance dashboard listing each obligation, its status, the quantum of penalties already accrued, and the recommended remediation steps. For filings that can still be made under the Companies Fresh Start Scheme or any currently active amnesty window, the report identifies the opportunity and the corresponding reduced fee. For genuinely time-barred lapses, the report advises on compounding or adjudication routes.

How It Works

1. 1

   Document collection and intake

   Gather the company's incorporation documents, MCA filing history, financial statements, tax returns, GST records, labour law registrations, and statutory registers for the review period.

2. 2

   MCA and secretarial review

   Examine all ROC filings for completeness and timeliness, review statutory registers and minutes books, and identify missed event-based forms and annual filings with the corresponding penalty computation.

3. 3

   Tax compliance review

   Verify income-tax return filings, advance tax payments, TDS deduction and deposit records, TDS return filings, and GST return filings and reconciliations against GSTR-2B.

4. 4

   Labour law and other regulatory review

   Confirm EPF and ESI registration and timely monthly challan deposits, verify Professional Tax compliance in applicable states, and check Shop and Establishment Act registration status.

5. 5

   Compliance dashboard and remediation report

   Compile findings into a structured report with each obligation, its status, estimated penalty exposure, and recommended remediation action including available amnesty or compounding routes.

6. 6

   Remediation support

   Assist with filing overdue forms, computing and paying additional fees, filing compounding applications where applicable, and updating statutory registers to bring the company to full compliance.

Government Fees

Professional Fees