Monthly Archives: December 2015

Details and Conductance of the Annual Examination for Company

 

The Annual Examination for Company which is newly incorporated must be held every year in order for the company to continue doing business in the long-term. The Annual Examination for Company must be according to the laws and regulations of the place in which the company is based. The Annual Examination for company is also used for renewal of a company’s business certificate, in order to continue doing business in the region as the business certificate is valid for one year only. Each examination may differ in requirements according to the region of incorporation. After the anniversary date of the company incorporation, the Registrar of Companies requires the specified company to deliver an annual return. Information such as updates on the state affairs of the company during the previous year, number of shareholders of the company, their shareholdings and the operation of each shareholding etc are required.

The services provided include:

  1. The Annual Examination for a company.
  2. Joint Annual examination for Foreign Investment Enterprise.
  3. License Renewal for Overseas/Offshore Company.

 

  • Procedure for the Annual Examination for Company- Existing clients are only needed to sign on the acknowledgement and the annual return file. But a new client has to provide the copies of certificate of incorporation, business registration certificate and NCI.
  • Timing of the Annual Examination for Company- The Annual Examination for company would be conducted every year on the anniversary of the incorporation of the company. Any late delivery might lead to the company incurring fines.
  • Fees of the Examination- Fees for the examination may vary with region and the profile of the company.

The conductance of the Annual Examination for offshore companies is easier and simpler and it is a legal way for the company to continue its operation. The drafting of statutory documents for the government, resolutions are also proposed at the annual general meeting and board meetings in compliance with the laws of the specific region. Risk assessment is also performed and specific advices are also given for improvements based on the available financial reports of the company. The customers are also updated with the latest regulations in offshore regions and are given professional advice in addition to providing annual examination services. All matters during the annual examination are handled. Risk Aversion advices are provided to the investors based on the operation of the enterprises.

The need for a financial advisory in the corporate world

The financial advisory services that are available in the market range manifold within what they actually provide. From a small firm with certain kinds of financial experts, tax consultation can be gained, certain manage the wealth of individuals and certain provide only audit services which will help get a better picture of the existing management of the company. An organization that operated in more than one geographic location usually need one or all of the below mentioned services that are provided by a financial advisory:

  • Risk Management

Apart from tax management, a financial advisory service is very apt at risk management. They conduct audits and evaluations for the employees and processes which help identify any risk gaps. When identified there are comprehensive plans made to mitigate these risks. This process is very important for a company that is working in a fiercely competitive environment.

  • Compliance management

Especially for a multinational company, this is a very challenging area to get perfectly right every time. A financial advisory will help with the compliance to laws and norms in every region. It is better suited to avail the services of an advisory which also has branches in similar regions to the organization for the most effective use of this resource.

  • Building financial control

Even in the most ordinary of the business situations, an organization will always require financial control. Whether this control is in the form of budgetary activities or providing a forecast of the investments. Every decision relating to capital or investment needs to be analysed thoroughly for any implications. Having control over the financial matters is the ultimate requirement by any owner or manager.

  • Reorganization services

Financial advisory services are of immense help when a company is aiming to reorganize itself. Whether it is a capital restructuring or a merger with another company, there are several compliance, legal and financial implications that an advisory is better suited to deal with.

  • Strategic advise

The advisory services are able to provide strategic paths to an organization sometimes just through the experience and the corporate exposure that they gain in the market. A lone entrepreneur may not have the vast exposure and hence turning towards a financial advisory for strategic changes is considered beneficial.

  • Fraud management

In a big company, the chances of fraud are higher and hence it is necessary to keep a vigilant eye out for any type of a mis-happening. The financial advisory services that help with evaluations and audits are well placed to understand and bring forth any such fraudulent activities for the management’s urgent attention.