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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.