Due Diligence under the Companies Act

Audit

Due Diligence under the Companies Act

Before an acquisition, investment, or merger, investors and acquirers need to verify the target company's corporate and secretarial compliance. We conduct due diligence under the Companies Act—examining incorporation, ROC filings, statutory registers, board processes, related party transactions, and potential liabilities. Our report helps you make informed decisions and negotiate better terms.

When is it needed?

  • M&A / acquisition
  • Private equity / VC investment
  • Strategic partnership
  • Bank / lender verification

What we cover

  • Incorporation & corporate structure
  • ROC filings & compliance status
  • Statutory registers & records
  • Litigation, penalties & defaults

Enquire for Due Diligence

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Overview

What is Due Diligence under the Companies Act?

Due diligence under the Companies Act is a comprehensive review of a company's corporate and secretarial compliance. We examine the certificate of incorporation, MOA, AOA, ROC filings (MGT-7, AOC-4, and other e-forms), statutory registers, board and shareholder resolutions, related party transactions, charges, and any pending litigation or penalties. The output is a structured report highlighting compliance status, red flags, and recommendations. This helps acquirers and investors assess risk, price the transaction, and plan post-deal integration or rectification.

Scope

Areas We Examine

We cover these areas in our due diligence.

Incorporation

Certificate, MOA, AOA, corporate structure.

ROC Filings

Annual returns, financial statements, e-forms.

Statutory Registers

Members, directors, charges, transfers.

Board & Shareholders

Resolutions, minutes, approvals.

Related Party Transactions

RPT disclosures and compliance.

Litigation & Penalties

Pending notices, compounding, penalties.

Process

Due Diligence Process

1

Scope & Engagement

Define scope, sign engagement, and request document list.

2

Document Collection

Collect incorporation docs, ROC filings, registers, minutes.

3

Verification

Verify against MCA portal and cross-check records.

4

Report

Prepare structured report with findings and recommendations.

5

Presentation

Present findings and discuss implications with client.

Our Services

Explore Other Services

We offer end-to-end corporate law consultancy, from entity formation to ongoing compliance.

FAQ

Frequently Asked Questions

Common questions about due diligence.

Typically 2–4 weeks depending on company size, document availability, and scope. We can expedite for urgent transactions. Timelines are agreed at engagement.

Yes. We conduct buy-side due diligence (for acquirer/investor) or sell-side/vendor due diligence (for target company preparing for a transaction). Scope can be tailored.

We report them clearly in the due diligence report with risk assessment. We advise on rectification options, cost, and timeline. The client can use this to renegotiate or walk away.