Compliance, in plain language
Every confusing term on this site, explained like a friend would. These same explanations pop up wherever you see a on any page.
12A & 80G
12A & 80G Registrations
What it is: Income-tax registrations that make an NGO tax-exempt (12A) and let its donors claim deductions (80G).
Why it matters: Serious donors and CSR funds only give to NGOs with both.
Read full explanation →ADT-1
Form ADT-1
What it is: The form that informs the Registrar which Chartered Accountant is your company’s statutory auditor.
Why it matters: Every company must appoint an auditor within 30 days of incorporation — even before the first sale.
Read full explanation →AGM
Annual General Meeting
What it is: The yearly shareholder meeting where accounts are approved.
Why it matters: Annual filings count their deadlines from the AGM date.
Read full explanation →AOA
Articles of Association
What it is: The internal rulebook of your company — how directors are appointed, how shares move, how decisions are made.
Why it matters: Banks, investors and courts refer to your AOA whenever there’s a question about who can do what in the company.
Read full explanation →AOC-4
Form AOC-4
What it is: The annual filing of your company’s financial statements to the Registrar of Companies.
Why it matters: Mandatory every year even with zero turnover. Late fee is ₹100 per day, with no upper cap.
Read full explanation →Apostille
Apostille certification
What it is: An international document authentication under the Hague Convention, used for foreign documents in cross-border filings.
Why it matters: MCA requires the parent's COI, board resolution and directors' passports to be apostilled in the home country before filing an Indian Subsidiary.
Read full explanation →ARN
Application Reference Number
What it is: The acknowledgement number generated when your GST application is submitted.
Why it matters: It’s your tracking ID — we share it with you the moment we file.
Read full explanation →Authorised Capital
Authorised Capital
What it is: The maximum share capital your company is allowed to issue, set in the MOA.
Why it matters: Government incorporation fees scale with it. Most startups begin at ₹1 lakh and raise it when needed.
Read full explanation →BEN-2
Form BEN-2 (Significant Beneficial Owner)
What it is: MCA return declaring the ultimate human owner behind layered corporate shareholdings.
Why it matters: Anyone holding ≥10% beneficial ownership through layered entities must be declared. Skip it and the company plus the SBO both face penalties.
Read full explanation →Board Resolution
Board Resolution
What it is: The formal written decision of your board of directors.
Why it matters: Banks, investors and registrars demand certified resolutions for accounts, loans and key changes.
Read full explanation →CIN
Corporate Identification Number
What it is: The unique 21-character registration number your company receives on incorporation.
Why it matters: It’s your company’s legal identity — printed on every invoice, letterhead and filing.
Read full explanation →CMA Report
Credit Monitoring Arrangement Report
What it is: A bank-format financial projection report.
Why it matters: Banks require it for business loans above small limits.
Read full explanation →Composition Scheme
GST Composition Scheme
What it is: A simplified GST option for small businesses (turnover up to ₹1.5 crore) — flat ~1% tax, quarterly filing, but no input credit and no interstate sales.
Why it matters: Great for local traders; wrong for exporters or B2B — we advise before you opt in.
Read full explanation →CSR-1
Form CSR-1
What it is: MCA registration form that NGOs and Section 8 companies must file to be eligible to receive Corporate Social Responsibility (CSR) funds from corporates.
Why it matters: Mandatory since April 2021 — without CSR-1, your NGO cannot receive CSR contributions from any company, even with valid 12A/80G.
Read full explanation →DIN
Director Identification Number
What it is: A unique lifetime ID number issued by the government to every company director.
Why it matters: You cannot be appointed a director without one. It’s allotted automatically during incorporation.
Read full explanation →DIR-12
Form DIR-12
What it is: MCA filing that records appointment, resignation or change of a director.
Why it matters: Section 170 requires it within 30 days of the change. Late filing attracts ₹100/day penalty; the outgoing director also stays on MCA records until filed.
Read full explanation →DIR-2
Consent to Act as Director
What it is: A signed consent letter from each person agreeing to become a director.
Why it matters: Filed with incorporation papers; no consent letter, no directorship.
Read full explanation →DIR-3 KYC
Director KYC
What it is: An annual identity confirmation every DIN holder must complete (OTP-based after the first year).
Why it matters: Miss the 30 September deadline and the DIN is deactivated — reactivation costs ₹5,000.
Read full explanation →DPIIT
Department for Promotion of Industry and Internal Trade
What it is: The government department under Commerce Ministry that runs the Startup India recognition scheme.
Why it matters: DPIIT recognition unlocks 80-IAC tax holiday, angel tax exemption, fast-track patents and govt tender benefits.
Read full explanation →DPIN
Designated Partner Identification Number
What it is: The LLP equivalent of a DIN — a unique ID for each designated partner.
Why it matters: Mandatory for the two designated partners every LLP must have.
Read full explanation →DPT-3
Form DPT-3
What it is: An annual return of loans and deposits every company must file.
Why it matters: Due 30 June yearly; often forgotten and penalised.
Read full explanation →DSC
Digital Signature Certificate
What it is: A USB-token-based digital signature used to sign government filings electronically.
Why it matters: MCA, GST and tax portals only accept forms signed with a valid DSC. Each director typically needs one (₹1,500–2,000, valid 2 years).
Read full explanation →e-Way Bill
Electronic Way Bill
What it is: A digital transport document required for moving goods worth over ₹50,000.
Why it matters: Trucks get stopped and goods seized without one.
Read full explanation →ESI
Employees’ State Insurance
What it is: Medical insurance scheme for employees earning up to ₹21,000/month; mandatory once you have 10+ employees.
Why it matters: Registration arrives automatically with incorporation; monthly contributions start when you cross the threshold.
Read full explanation →FC-GPR
Foreign Currency Gross Provisional Return
What it is: The RBI return filed within 30 days of allotting shares to a foreign shareholder.
Why it matters: Mandatory under FEMA. Late filing attracts compounding penalties — ₹5,000+ per day, capped at 100% of the transaction value.
Read full explanation →FC-TRS
Foreign Currency Transfer of Shares
What it is: The RBI return filed when shares move between a resident and a non-resident.
Why it matters: Must be filed within 60 days of the transfer. Pricing must follow FEMA guidelines — under-valued or over-valued transfers attract penalties.
Read full explanation →FiLLiP
Form for Incorporation of LLP
What it is: The government’s online form for registering an LLP.
Why it matters: The LLP version of SPICe+ — it also allots DPINs to the partners.
Read full explanation →FLA Return
Foreign Liabilities and Assets Return
What it is: An annual RBI filing by every company with FDI or overseas investment, due 15 July.
Why it matters: Misses attract penalties under FEMA; the RBI follows up actively.
Read full explanation →Form 11
LLP Annual Return
What it is: The LLP’s yearly summary of partners and contributions.
Why it matters: Due 30 May every year — even for LLPs with zero business.
Read full explanation →Form 8
LLP Statement of Accounts
What it is: The LLP’s yearly statement of accounts and solvency filed with the Registrar.
Why it matters: Due 30 October every year. Late fee ₹100/day, no cap.
Read full explanation →FSSAI
Food Safety & Standards Authority of India
What it is: The food regulator. Every food business — from a cloud kitchen to a snack brand — needs an FSSAI registration or license.
Why it matters: The 14-digit FSSAI number must be printed on labels, menus and packaging. Operating without it is an offence.
Read full explanation →GeM
Government e-Marketplace
What it is: The government’s official portal where departments buy goods and services.
Why it matters: Registration lets you sell directly to government buyers — a large, underused market.
Read full explanation →GSTIN
GST Identification Number
What it is: Your 15-digit GST registration number.
Why it matters: Needed to charge GST, claim input credit, sell on Amazon/Flipkart, or trade across state lines.
Read full explanation →GSTR-1
GSTR-1
What it is: The monthly/quarterly return listing every sale invoice you issued.
Why it matters: Your customers’ input-credit depends on you filing it on time.
Read full explanation →GSTR-3B
GSTR-3B
What it is: The monthly summary return where you actually pay your GST.
Why it matters: File late and you pay interest plus late fees — this is the return that keeps you compliant month to month.
Read full explanation →GSTR-9
GSTR-9 Annual Return
What it is: The once-a-year consolidated GST return.
Why it matters: Mandatory if turnover crosses ₹2 crore; reconciles the whole year’s returns.
Read full explanation →IEC
Import Export Code
What it is: A 10-digit code from DGFT that legally allows you to import or export.
Why it matters: Customs and payment gateways require it. One-time registration, lifetime validity.
Read full explanation →INC-12
Form INC-12 (Section 8 licence)
What it is: The application that grants a non-profit licence to a Section 8 company.
Why it matters: Without the INC-12 licence, the entity can't be incorporated as a Section 8 — it would be a regular Pvt Ltd, ineligible for NGO benefits.
Read full explanation →INC-20A
Commencement of Business Declaration
What it is: A declaration filed within 180 days of incorporation confirming shareholders have deposited their share capital.
Why it matters: Skip it and the company cannot legally start business or borrow — and late filing attracts penalties up to ₹50,000 for the company.
Read full explanation →INC-22
Form INC-22 (Office Change)
What it is: The MCA filing that updates your company's registered office address.
Why it matters: Must be filed within 30 days of any address change. Govt letters go to the registered address — miss this filing and notices end up at the old place.
Read full explanation →INC-24
Form INC-24 (Name Change Approval)
What it is: Central Government approval form for changing the company name.
Why it matters: Required for any name change. The MCA reviews the new name and approves before issuing the fresh incorporation certificate.
Read full explanation →INC-6
Form INC-6 (Conversion)
What it is: MCA form for converting an OPC to a Private Limited Company (or a Pvt Ltd back to OPC).
Why it matters: Mandatory once an OPC crosses ₹50 lakh paid-up capital or ₹2 crore turnover. Must be filed within 6 months of crossing the threshold.
Read full explanation →ITC
Input Tax Credit
What it is: The GST you paid on purchases, which you can subtract from the GST you collect on sales.
Why it matters: It’s real money — good filing hygiene directly lowers your tax bill.
Read full explanation →ITR
Income Tax Return
What it is: Your yearly declaration of income and taxes to the Income Tax Department.
Why it matters: Mandatory above the basic limit — and banks ask for 2–3 years of ITRs for any business loan.
Read full explanation →ITR-7
Income Tax Return Form 7
What it is: The income tax return form used by trusts, NGOs, Section 8 companies and political parties.
Why it matters: Mandatory even for 12A/80G-exempt entities — exemption doesn't waive the filing.
Read full explanation →LLPIN
LLP Identification Number
What it is: The unique registration number an LLP receives on incorporation.
Why it matters: Same role as a CIN, but for LLPs.
Read full explanation →LUT
Letter of Undertaking
What it is: A yearly declaration that lets exporters ship goods/services without paying IGST upfront.
Why it matters: Without it, exporters must pay tax first and claim refunds later — a cash-flow killer.
Read full explanation →MCA
Ministry of Corporate Affairs
What it is: The ministry that governs companies and LLPs in India and runs the mca.gov.in portal.
Why it matters: Every incorporation and company filing happens on its portal.
Read full explanation →MGT-14
Form MGT-14
What it is: Filing of board and shareholder resolutions with the ROC within 30 days.
Why it matters: Mandatory for special resolutions (MOA/AOA changes, name change, office change beyond city, etc.). Skipping it invalidates the underlying decision.
Read full explanation →MGT-7
Form MGT-7 / 7A
What it is: The annual return of your company — shareholders, directors, share transfers and key changes during the year.
Why it matters: Mandatory yearly filing. Like AOC-4, late fees run ₹100/day without cap.
Read full explanation →MOA
Memorandum of Association
What it is: Your company’s constitution — it states the company name, registered state, business objects and capital.
Why it matters: The Registrar approves your company based on this document. Changing it later needs a formal amendment, so it must be drafted right the first time.
Read full explanation →NDH-1
Form NDH-1
What it is: The annual statutory compliance return for Nidhi companies.
Why it matters: Reports member count, NOF, deposits and lending — due 90 days after FY-end.
Read full explanation →NDH-4
Form NDH-4
What it is: The declaration that confirms Nidhi status after meeting the 200-member and ₹10 lakh NOF thresholds.
Why it matters: Must be filed within 120 days of crossing both thresholds. Without it, the company isn't formally recognised as a Nidhi and loses RBI exemption.
Read full explanation →Nidhi Company
Nidhi Company
What it is: A members-only deposit-and-lending company under Section 406 of the Companies Act — RBI-exempt.
Why it matters: Lets you take deposits and lend to members without an NBFC licence — but you can't deal with non-members at all.
Read full explanation →Nil Return
Nil GST Return
What it is: The return you must file even in months with zero sales.
Why it matters: “No business” doesn’t mean “no filing” — late fees apply to nil returns too.
Read full explanation →ODR
Online Dispute Resolution
What it is: Resolving consumer, business or insurance disputes online through mediation/arbitration instead of court.
Why it matters: Faster and far cheaper than litigation.
Read full explanation →PAN
Permanent Account Number
What it is: The 10-character tax identity of a person or company.
Why it matters: Your company gets its own PAN automatically with incorporation.
Read full explanation →PF
Provident Fund (EPF)
What it is: Retirement savings scheme; mandatory for establishments with 20+ employees.
Why it matters: Late deposits attract steep interest and penalties — payroll compliance is not optional at scale.
Read full explanation →Professional Tax
Professional Tax
What it is: A small state-level tax on salaries and professions (₹200/month typically), applicable in many states.
Why it matters: Employers must register and deduct it where applicable; rules differ by state.
Read full explanation →ROC
Registrar of Companies
What it is: The government office (under MCA) where companies are registered and file their annual documents.
Why it matters: “ROC compliance” = the filings that keep your company in good standing.
Read full explanation →Section 8
Section 8 Company
What it is: A non-profit company structure under Section 8 of the Companies Act 2013 — the strongest NGO structure for grants and CSR.
Why it matters: Corporate governance + perpetual succession + single MCA registration valid all-India, unlike trusts and societies which are state-bound.
Read full explanation →SH-4
Form SH-4 (Share Transfer Deed)
What it is: The legal instrument that transfers shares between two parties.
Why it matters: Stamp duty of 0.25% of consideration must be paid on the SH-4 — skip it and the deed is invalid for due diligence.
Read full explanation →SH-7
Form SH-7 (Capital Increase)
What it is: The MCA filing that records an increase in authorised share capital.
Why it matters: Authorised capital ceiling lives in your MOA — you can't issue shares beyond it without filing SH-7 + paying stamp duty on the increase first.
Read full explanation →SPICe+
SPICe+ (INC-32)
What it is: The government’s single online form that registers your company and bundles PAN, TAN, EPFO, ESIC and even GST in one go.
Why it matters: Because of SPICe+, your PAN, TAN and PF/ESI registrations arrive automatically with incorporation — no separate applications.
Read full explanation →Statutory Audit
Statutory Audit
What it is: The yearly audit of company accounts by an independent practising CA — mandatory for every company regardless of size.
Why it matters: No audit, no annual filing. Audit fees are always billed separately (we show the typical slab upfront).
Read full explanation →STK-2
Form STK-2 (Strike-off)
What it is: The MCA filing that strikes a company off the register — closing it legally.
Why it matters: Dormant companies still owe annual filings forever; STK-2 stops the meter. Govt fee ₹10,000.
Read full explanation →TAN
Tax Deduction Account Number
What it is: The number that lets your company deposit TDS.
Why it matters: Issued automatically with incorporation; required the day you hire or pay rent.
Read full explanation →TDS
Tax Deducted at Source
What it is: Tax you must cut from salary, rent, contractor and professional payments and deposit with the government, with quarterly returns.
Why it matters: Late deposit attracts interest; late returns attract ₹200/day fees.
Read full explanation →TM Class
Trademark Class
What it is: Trademarks are registered in 45 classes of goods/services; your brand is protected only in the classes you file.
Why it matters: Filing in the wrong class = paying for protection you don’t actually have. We run the class search first.
Read full explanation →TM Objection
Trademark Objection
What it is: The examiner’s formal questions about your application (similarity, descriptiveness, etc.).
Why it matters: Very common, not a rejection. A well-drafted reply usually clears it; ignoring it kills the application.
Read full explanation →TM Opposition
Trademark Opposition
What it is: A third party formally opposing your mark after it’s published in the journal.
Why it matters: Requires legal arguments and evidence — this is attorney territory, and we handle it with ours.
Read full explanation →Udyam
Udyam (MSME) Registration
What it is: The government’s free MSME registration for small businesses.
Why it matters: Unlocks cheaper trademark fees (50% off), priority loans, subsidies and protection against late payments.
Read full explanation →