Understand why audit, diligence and compliance matter for growing companies in India. Learn legal risks, documents, corporate obligations and compliance needs.
Audits, Due Diligence & Compliance are some important practices that every company must be aware of. These help your company to stay updated with all the risk factors, ensure transparency, keep your clients/stake holders safe and ensure proper groundwork. You may think these things apply to MNCs. But as a startup or MSME or family run business you should also start planning ahead if you're based out of Delhi NCR/Noida/Gurugram or Mumbai or Bengaluru and are looking to scale up.
A lot of times entrepreneurs come to know about these issues when they receive a legal notice, a fight with there investor/employee or tax or are planning to raise money or sell their business. Fixing what you have done wrong in the past can take a toll on your business.
I have helped many such clients who didn't have proper documents or corporate formalities in place to grow their business. Having a proper counsel can go a long way to help your company understand its loopholes.
I at BK Singh Advocate help companies understand these corporate related issues and can guide them on contracts, compliances and document scrutiny.
As your company grows you will have more regulation that need to be adhered to. If a company continues to grow and does not ensure their company is legally compliant they could end up in litigation and monetary loss as well as damage to there image.
Compliance with corporate law. There are many areas that can be looked at when doing audit's and due diligence on a company. Ensuring your business practices, books and transactions are in order.
If you are doing business in India there are many different areas of law to consider. Compliance can include Companies Act 2013, contracts, labour laws, tax related issues and other industry specific compliance.
At BK Singh Advocate we can advise how being legally compliant can benefit your company in the future.
Audit, diligence and compliance can all go hand in hand. There are many different types of audits that a company may need to perform. An Audit can be done on a companies business and documentation to ensure they are following the law. When performing due diligence you want to make sure your company is doing everything legally before investing in something. Whether its investing in other businesses, new ventures or expanding your current one.
As a business grows you will want to perform due diligence when trying to acquire investors. Maybe your trying to enter into a new business partnership or acquire another business. You should always due diligence before entering into any business contract or expanding your business.
Due Diligence is often thought of as just a compliance task with the government. There are many different areas of your business that can fall under compliance. Contracts, IP, employees and vendors.
As a business grows and scales, their organisation structure and responsibilities change. An organisation that starts off as a small venture likely will not have any major agreements in place. They will have informal processes, and will not be required to go through as many regulations.
Once your business starts growing there will be more employees, vendors, customers and investors. You’ll find there are more transactions within your company.
Frequent compliance checks allow you to see if your current systems and standards are able to accommodate your growth. If your company stays stagnant and does not legally scale with your business needs, you may run into issues when investing, partnering, acquisition or company disputes.
Let’s say your company grows and you sign numerous vendor agreements. You may not take the time to review termination clauses, payment obligations and methods of dispute. These little oversights can turn into larger financial and legal concerns.
BK Singh Advocate can help you review your corporate documents and see where you might need some preventative legal care.
Companies want to know what they are getting into before entering a significant transaction. Due diligence allows for a comprehensive analysis of legal documents, commitments and business relationships. Decision makers can get a clear picture of where the company actually stands.
Reasons companies typically conduct due diligence:
Thorough review could uncover pending litigations, unclear titles, contract exposures or compliance risks that could impact your transaction.
Many businesses look only at the financial aspect when seeking to grow. Don't let legal exposures tucked away in contracts, lawsuits, or compliance issues influence your commercial decision.
BK Singh Advocate can assist you with reviewing legal documents and corporate exposures before you make that next big business decision.
Corporate governance establishes a system where businesses operate with responsibility. Rules around how your directors, shareholders and management work together. Ensuring there are clear lines of accountability and transparency.
Corporate Governance as per Companies Act, 2013 means complying with certain record keeping requirements of the company, complying with statutory requirements and fulfilling duties of directors and officers of the company.
Corporate Governance defines best practices for businesses to be clear on:
Corporate governance helps establish your growing business as credible in the eyes of investors, future business partners and customers.
Taking Preventive Measures allows business to spot issues before they escalate into disputes. Every business should have updated agreements, organised records and compliant systems appropriate to their business activities.
Some key areas include:
A lot of commercial disputes become contentious because a business waits until the dispute has arisen to review their position. If you assess the situation early you may be able to spot the issue and understand your options.
BK Singh Advocate offers Corporate Legal Advice to businesses who wish to have better understanding of their compliance, keeping of documents and how to evaluate their business risk.
Commercial success is important for a growing business, but it can’t be the only focus. Proper planning from a legal standpoint, along with discipline in documentation and understanding your statutory duties is essential for sustained growth.
Audit, diligence and compliance help you find gaps, strengthen your internal practices and make better decisions. While these are helpful in times of disputes or transactions, they can be beneficial to your business on a day to day basis as well.
Businesses of all sizes across India from startups to MSMEs to established entities are realizing the need for professional legal help to understand their corporate obligations.
BK Singh Advocate provides you solutions for your corporate legal needs with practical advice, document review and help with compliance.
Built on a strong legal foundation your business can focus on growth and minimize unnecessary risk.
There are various acts that an Indian company needs to abide by based on the type of business they conduct.
There are various acts that an Indian company needs to abide by based on the type of business they conduct.
Some of these include the Companies Act, 2013 which dictates company law, incorporation laws, duties of directors and other laws the company will have to comply with.
Other acts that may be relevant to the company are;
There are duties that are imposed upon directors and those who run the company to ensure proper record and disclosure. Not following these can lead to the company and its directors being liable.
At BK Singh Advocate we can look at your companies documentation and inform you of any issues or advise you on what is required for your company.
You may need to check the following:
This will vary depending on the type of company you are carrying out your due diligence on.
You should seek advice from a lawyer if your business:
By speaking to a lawyer early on they can help resolve any issues before they turn into disputes.
Business need advice when it comes to law as well. BK Singh Advocate offers corporate advisory services in relation to company audits. This includes reviewing of contracts and due diligence as well as assessing your business needs.
Legal advisory can allow your company to become aware of missing paperwork or concerns that you may have with contracts and what you may be required to do legally.
Corporate Law is not just for helping when an issue has occurred. It allows your business to thrive and grow.
Compliance ensures that your business adheres to all the rules and regulations which may apply to you. It also helps in documentation and to mitigate risks from any kind of contract or legal issues.
Due diligence is the process of going through a companies documentations, contracts and other liabilities to know what they are involved with legally.
Not necessarily but yes there are scenarios where compliance will be required for startups and MSMEs as well.
Audit can help you find out where you are lacking documentation or may require changes to your process.
Mostly to know what the company is doing legally and if there are any pitfalls that may arise while investing.
If there is non compliance in your business then there could be various implications such as disputes or monetary losses and issues while expanding your business.
They can go through your company documentation and advise you what you may need to comply with legally.
As a director of a company you may be held accountable for certain compliances.
It is recommended to perform due diligence when you are getting invested or want to expand your business.
We can help you with your companies compliance needs by advising you on your current documentation and business practices.
There should always be some form of audit and due diligence when it comes to your business. This ensures your company can expand and thrive legally.
If you don't take steps to stay compliant this can become an issue once your company is growing or about to engage in some type of deal. Having a lawyer look over your situation can allow for these types of issues to be identified.
Corporate Documentation & Awareness
BK Singh Advocate can assist companies throughout India with all their legal needs concerning documentation. Speak to us if you have any questions about staying aware of your risk as a company.
Speak directly with Advocate BK Singh at LEGAL365.
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