ANNUAL LEGAL COMPLIANCE
Starting a business brings with itself certain legal responsibilities. These legal responsibilities are of two types:
(a) Formal compliance, such as filing of periodic statements with the government. These formalities are to be completed by the business owner once the business entity is formed, irrespective of whether the venture has actually taken off. A default in formal compliance may attract monetary fines and other penalties.
(b) Substantive compliance, such as having the necessary legal authorizations and permits for certain activities of the business. For ex. if the founder of a limited company wishes to launch a new business vertical, it is necessary that the charter of the company supports the new activity. Further, approvals of the board supporting the new activity should be properly drafted and recorded. A lapse in ensuring substantive legal compliance may result in the new business vertical being declared unlawful. Resolving such a situation is both time-consuming and expensive.
In many cases, a business is started by incorporating a private limited company without the founder being aware of the various compliances involved. This could result in substantial legal penalties. Further, in case the business wishes to form a joint venture or raise funds in the future, legal non-compliance would certain draw adverse remarks during the due diligence process.
LawLeo provides a very easy solution to this situation. We manage the complete legal compliance system of your business. Our team works alongside yours, ensuring that all the activities of your business are legally sound. Get in touch with us to know our annual legal compliance services and discover how we can help your business.