Compliance glossary

Plain-English definitions of company law, GST, income tax, FEMA, labour and IP terms used in India.

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Aggregate Turnover (GST): Meaning and ExampleAggregate turnover under GST is the total value of all taxable supplies, exempt supplies, exports and inter-state suppli…
Annual General Meeting (AGM): Meaning and RulesAn Annual General Meeting (AGM) is the yearly meeting of a company's shareholders required by section 96 of the Companie…
Articles of Association: Meaning in Company LawThe Articles of Association (AoA) are a company's internal rulebook. Under section 5 of the Companies Act, 2013 they gov…
What Is Advance Tax? Meaning, Due Dates and RulesAdvance tax is income tax paid in instalments during the tax year itself, instead of in one lump sum after the year ends…
What Is an Arbitration Clause? Meaning and DraftingAn arbitration clause is a term in a contract under which the parties agree to resolve disputes through arbitration, a p…
What Is an Associate Company? Meaning and ExampleAn associate company is a company in which another company has significant influence but which is not its subsidiary. Un…
What Is Authorised Capital? Meaning and ExampleAuthorised capital is the maximum amount of share capital a company is allowed to issue, as stated in the capital clause…
What Was Angel Tax? Meaning and AbolitionAngel tax was the popular name for section 56(2)(viib) of the Income-tax Act, 1961, which taxed an unlisted company on s…

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What Are Bonus Shares? Meaning and Rules in IndiaBonus shares are fully paid shares issued free of cost to existing shareholders in proportion to their holdings, by capi…
What Is a Board Resolution? Meaning and ExampleA board resolution is a formal decision taken by a company's board of directors, either at a duly convened board meeting…

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22% Corporate Tax Option (115BAA): New Section 200The concessional corporate tax option lets a domestic company pay income tax at 22%, plus 10% surcharge and 4% cess, an …
Certificate of Incorporation: Meaning in Company LawA Certificate of Incorporation is the document issued by the Registrar of Companies under section 7 of the Companies Act…
Cheque Bounce (Section 138 NI Act): MeaningCheque bounce under section 138 of the Negotiable Instruments Act, 1881 is an offence committed when a cheque issued for…
Commencement of Business: Meaning in Company LawCommencement of business is the declaration that a company with share capital must file before it starts business or exe…
Strike Off: Meaning in Indian Company LawStrike off is the removal of a company's name from the Register of Companies under section 248 of the Companies Act, 201…
What Is a Cap Table? Meaning and ExampleA cap table, short for capitalisation table, is a record of a company's ownership: who holds equity shares, preference s…
What Is a Charge on Assets? Company Law MeaningA charge is an interest or lien created over a company's property or assets, including a mortgage or hypothecation, to s…
What Is a Chartered Accountant? Role for BusinessesA chartered accountant (CA) is a member of the Institute of Chartered Accountants of India (ICAI), the statutory body un…
What Is a Company Secretary? Role in Indian CompaniesA company secretary (CS) is a professional who is a member of the Institute of Company Secretaries of India (ICSI) and a…
What Is a Credit Note in GST? Meaning and ExampleA credit note under GST is a document issued by a registered supplier under section 34 of the CGST Act, 2017 when the va…
What Is CIN? Corporate Identity Number ExplainedA CIN (Corporate Identity Number) is the unique 21-character code the Registrar of Companies allots to every company reg…
What Is Copyright? Meaning and Registration in IndiaCopyright is the exclusive right of the creator or owner of an original work to reproduce, publish, adapt and communicat…

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Demat of Shares for Private Companies: MeaningDematerialisation of shares means converting physical share certificates into electronic holdings in a demat account wit…
Designated Partner: Meaning in LLP LawA designated partner is a partner of a limited liability partnership who is responsible for the LLP's compliance with th…
Startup India Recognition (DPIIT): MeaningStartup India recognition is the certification by the Department for Promotion of Industry and Internal Trade (DPIIT) th…
What Is a Debit Note in GST? Meaning and ExampleA debit note under GST is a document issued by a registered supplier under section 34(3) of the CGST Act, 2017 when the …
What Is a Dormant Company? Meaning and RulesA dormant company is a company that has been formed for a future project or to hold an asset or intellectual property an…
What Is a DSC? Digital Signature Certificate ExplainedA Digital Signature Certificate (DSC) is an electronic key, usually stored on a USB token, that lets a person sign docum…
What Is Design Registration? Meaning in IndiaDesign registration protects the visual features of a product, such as its shape, configuration, pattern, ornamentation …
What Is DIN? Director Identification Number ExplainedA DIN (Director Identification Number) is a unique eight-digit number that every individual must hold before being appoi…
What Is Downstream Investment? Meaning in FDI LawDownstream investment is an investment made by an Indian entity that has foreign investment and is owned or controlled b…
What Is DPIN? Designated Partner ID ExplainedA DPIN (Designated Partner Identification Number) is the identification number that every designated partner of a limite…
What Is DTAA? Double Taxation Avoidance AgreementA DTAA (double taxation avoidance agreement) is a tax treaty between India and another country that allocates taxing rig…
What Is Due Diligence? Meaning for StartupsDue diligence is the investigation an investor, acquirer or lender carries out on a company before completing a transact…

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Extraordinary General Meeting (EGM): Meaning and RulesAn Extraordinary General Meeting (EGM) is any general meeting of a company's shareholders other than the Annual General …
What Is an E-way Bill? Meaning and Rules in GSTAn e-way bill is an electronic document generated on the government's e-way bill portal for the movement of goods, under…
What Is an ESOP? Employee Stock Options ExplainedAn ESOP (employee stock option plan) gives employees the right, but not the obligation, to buy a company's shares at a p…
What Is E-invoicing in GST? Meaning and ThresholdE-invoicing under GST is the system in which businesses above a turnover threshold report their B2B invoices, export inv…
What Is ECB? External Commercial Borrowing ExplainedECB, or external commercial borrowing, is a commercial loan raised by an eligible Indian entity from a recognised non-re…
What Is EPF? Employees' Provident Fund ExplainedEPF (Employees' Provident Fund) is the compulsory retirement savings scheme administered by the Employees' Provident Fun…
What Is ESIC? Employees' State Insurance ExplainedESIC (Employees' State Insurance Corporation) runs the employees' state insurance scheme, which gives medical care and c…

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Form 26AS and AIS: Now Form 168 ExplainedForm 26AS was the annual tax credit statement on the income-tax portal that showed TDS and TCS credited against a PAN, a…
What Is a Founders' Agreement? Meaning and ClausesA founders' agreement is a contract between the co-founders of a startup that records how they will own and run the busi…
What Is an FSSAI Licence? Types and Limits in 2026An FSSAI licence or registration is the permission a food business operator needs under the Food Safety and Standards Ac…
What Is FEMA? Foreign Exchange Management Act ExplainedFEMA, the Foreign Exchange Management Act, 1999, is the Indian law that governs foreign exchange transactions, including…
What Is the FDI Automatic Route? Meaning in IndiaThe FDI automatic route is the route under which a non-resident can invest in an Indian company without prior approval f…
What Is the FDI Government Route? Meaning in IndiaThe FDI government route is the route under which a foreign investor needs prior approval from the Government of India b…

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GST Composition Scheme: Meaning, Limits and RatesThe GST composition scheme is an optional scheme under section 10 of the CGST Act, 2017 that lets small taxpayers pay GS…
What Is a GST Refund? Meaning and TypesA GST refund is the return of tax, interest or other amounts paid to the government that a taxpayer is entitled to get b…
What Is Gratuity? Meaning and Rules Under the CodeGratuity is a lump-sum payment an employer makes to an employee on leaving, retirement, death or disablement, as a rewar…
What Is GSTIN? GST Identification Number ExplainedA GSTIN (Goods and Services Tax Identification Number) is the unique 15-character number allotted to every person regist…

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What Is a Holding Company? Meaning and ExampleA holding company is a company that controls another company, its subsidiary. Under sections 2(46) and 2(87) of the Comp…
What Is an HSN Code? Meaning in GSTAn HSN (Harmonized System of Nomenclature) code is an internationally recognised numerical code used to classify goods, …

I

What Is IEC? Import Export Code ExplainedAn IEC (Importer-Exporter Code) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) that a busi…
What Is Input Tax Credit (ITC)? Meaning and ExampleInput tax credit (ITC) is the GST a registered business pays on its purchases of goods and services used in the course o…

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What Is a Legal Notice? Meaning and When It Is NeededA legal notice is a formal written communication, usually sent through an advocate, informing the recipient of a grievan…
What Is an LLP Agreement? Meaning and FilingAn LLP agreement is the written agreement between the partners of a limited liability partnership, or between the LLP an…
What Is LLPIN? LLP Identification Number ExplainedLLPIN (Limited Liability Partnership Identification Number) is the unique number allotted by the Registrar to every LLP …
What Is LUT in GST? Letter of Undertaking ExplainedA Letter of Undertaking (LUT) is a declaration filed on the GST portal in Form GST RFD-11 that allows a registered expor…

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Memorandum of Association: Meaning in Company LawThe Memorandum of Association (MoA) is the charter document of a company. Under section 4 of the Companies Act, 2013 it …
MSME 45-Day Payment Rule: Meaning and InterestThe MSME delayed payment rule, under sections 15 to 24 of the MSMED Act, 2006, requires buyers to pay micro or small sup…
What Is a Minutes Book? Company Law ExplainedA minutes book is the formal record of the proceedings of a company's board meetings, committee meetings and general mee…
What Is MAT? Minimum Alternate Tax ExplainedMAT (minimum alternate tax) is a tax on a company's book profit, payable when the tax under the normal provisions is low…
What Is MCA21 V3? The New MCA Portal ExplainedMCA21 V3 is the third version of the Ministry of Corporate Affairs' e-governance portal, on which companies and LLPs fil…

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What Is an NDA? Non-Disclosure Agreement ExplainedAn NDA (non-disclosure agreement) is a contract in which one or both parties agree to keep specified information confide…

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One Person Company (OPC): Meaning and RulesA One Person Company (OPC) is a private company with only one member, defined in section 2(62) of the Companies Act, 201…
Ordinary Resolution: Meaning in Indian Company LawAn ordinary resolution is a shareholders' resolution that passes when the votes cast in favour, including the chairperso…
What Is ODI? Overseas Direct Investment ExplainedODI, or overseas direct investment, is an investment by an Indian company, LLP or resident individual in the equity capi…

P

Place of Supply in GST: Meaning and ExamplePlace of supply is the location where a supply of goods or services is treated as made for GST purposes. Comparing it wi…
Presumptive Taxation: Meaning and Who Can Use ItPresumptive taxation is a simplified scheme under which eligible small businesses and professionals declare income at a …
Private Limited Company: Meaning in Company LawA private limited company is a company that, by its articles, restricts the transfer of its shares, limits its members t…
Producer Company: Meaning in Indian Company LawA producer company is a body corporate formed by primary producers, such as farmers, to carry on activities like product…
Public Limited Company: Meaning in Company LawA public limited company is a company that is not a private company, as defined in section 2(71) of the Companies Act, 2…
What Is a Partnership Deed? Meaning and ContentsA partnership deed is the written agreement between the partners of a partnership firm, setting out capital, profit shar…
What Is a Patent? Meaning and Process in IndiaA patent is an exclusive right granted by the government to an inventor or assignee to make, use, sell and import an inv…
What Is a Private Placement? Meaning in Company LawA private placement is an offer or invitation to subscribe to a company's securities made to a select group of persons, …
What Is Paid-up Capital? Meaning and ExamplePaid-up capital is the total amount shareholders have actually paid to a company for the shares allotted to them, includ…
What Is PAN? Permanent Account Number ExplainedA PAN (Permanent Account Number) is a unique 10-character alphanumeric identifier issued by the Income Tax Department to…
What Is Professional Tax? Meaning and Rules in IndiaProfessional tax is a tax levied by some state governments on persons earning income from professions, trades, callings …

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What Is the QRMP Scheme in GST? Meaning and RulesThe QRMP (Quarterly Return Monthly Payment) scheme lets GST-registered taxpayers with aggregate turnover up to ₹5 crore …

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Registered Office: Meaning in Indian Company LawA registered office is the official address of a company where all communications and notices are sent and where statuto…
Registrar of Companies (ROC): Meaning in IndiaThe Registrar of Companies (ROC) is the government officer under the Ministry of Corporate Affairs who registers compani…
Related Party Transaction: Meaning in Company LawA related party transaction (RPT) is a contract or arrangement between a company and a related party, such as a director…
Reverse Charge Mechanism (RCM) in GST: MeaningThe reverse charge mechanism (RCM) is a GST rule under which the recipient of a supply, rather than the supplier, is lia…
What Is a Registered Valuer? Meaning in Company LawA registered valuer is an individual or entity registered with the Insolvency and Bankruptcy Board of India (IBBI) to ca…
What Is a Rights Issue? Meaning in Company LawA rights issue is an offer of new shares by a company to its existing equity shareholders in proportion to their current…

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Section 8 Company: Meaning in Indian Company LawA Section 8 company is a company formed under section 8 of the Companies Act, 2013 to promote commerce, art, science, sp…
Share Transfer: Meaning in Indian Company LawA share transfer moves ownership of existing shares from one person to another. Under section 56 of the Companies Act, 2…
Shops and Establishments Licence: MeaningA Shops and Establishments licence or registration is the registration that shops, offices, commercial establishments, r…
Significant Beneficial Owner (SBO): Meaning in IndiaA significant beneficial owner (SBO) is an individual who, alone or with others, ultimately holds at least 10% of a comp…
Small Company: Meaning in Indian Company LawA small company is a private company whose paid-up capital does not exceed ₹10 crore and whose turnover does not exceed …
Special Resolution: Meaning in Indian Company LawA special resolution is a shareholders' resolution that passes only if the votes cast in favour are at least three times…
Startup Tax Holiday: Section 140 (formerly 80-IAC)The startup tax holiday lets an eligible startup deduct 100% of its profits from an eligible business for any three cons…
What Are Statutory Registers? Company Law GuideStatutory registers are the records every company must maintain at its registered office under the Companies Act, 2013 a…
What Is a SAC Code? Meaning in GSTA SAC (Services Accounting Code) is the code used to classify services under GST, based on the scheme of classification …
What Is a Share Certificate? Meaning and RulesA share certificate is a document issued by a company, under its seal if any, specifying the shares held by a member. Un…
What Is a Shareholders' Agreement? Meaning in IndiaA shareholders' agreement (SHA) is a contract among a company's shareholders, and usually the company, that governs thei…
What Is a Sole Proprietorship? Meaning in IndiaA sole proprietorship is a business owned, controlled and run by one individual, with no legal identity separate from th…
What Is a Statutory Auditor? Role and AppointmentA statutory auditor is the chartered accountant or firm of chartered accountants appointed under section 139 of the Comp…
What Is a Subsidiary Company? Meaning and ExampleA subsidiary company is a company in which another company, the holding company, controls the composition of the board o…
What Is Share Capital? Meaning and Types in IndiaShare capital is the money a company raises by issuing shares to its members. Under the Companies Act, 2013 it comes in …
What Is SPICe+? Company Incorporation Form ExplainedSPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), Form INC-32, is the MCA web form used to reg…
What Is Sweat Equity? Meaning in Company LawSweat equity shares are equity shares a company issues to its directors or employees at a discount, or for consideration…

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Trademark Opposition: Meaning and Process in IndiaA trademark opposition is a formal challenge by any person to the registration of a trademark that has been accepted and…
What Is a Tax Audit? Meaning and ApplicabilityA tax audit is an audit of a taxpayer's books of account by a chartered accountant under the income-tax law, to verify t…
What Is a Tax Invoice in GST? Meaning and FormatA tax invoice is the document a registered supplier issues under section 31 of the CGST Act, 2017 when making a taxable …
What Is a Tax Year? Income-tax Act 2025 MeaningTax year is the term used in the Income-tax Act, 2025 for the period whose income is taxed. Under section 3, it is the 1…
What Is a Term Sheet? Meaning for Indian StartupsA term sheet is a short document that sets out the key commercial and legal terms on which an investor proposes to inves…
What Is a Trademark Class? Nice Classes ExplainedA trademark class is one of the 45 categories into which goods and services are grouped for trademark registration under…
What Is a Trademark? Meaning and Registration in IndiaA trademark is a mark, such as a word, logo, slogan, shape, colour combination or sound, that distinguishes the goods or…
What Is TAN? Tax Deduction Account Number ExplainedTAN (Tax Deduction and Collection Account Number) is a 10-character alphanumeric number issued by the Income Tax Departm…
What Is TCS? Tax Collected at Source ExplainedTCS (tax collected at source) is income tax that a seller or specified person collects from the buyer at the time of a s…
What Is TDS? Tax Deducted at Source ExplainedTDS (tax deducted at source) is income tax that the payer deducts from certain payments, such as salary, fees, rent and …
What Is Transfer Pricing? Meaning in Indian Tax LawTransfer pricing refers to the prices charged in transactions between associated enterprises, such as an Indian subsidia…

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What Is Udyam Registration? MSME Meaning in IndiaUdyam registration is the free, paperless online registration of micro, small and medium enterprises with the Ministry o…

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Valuation Report (Registered Valuer): MeaningA valuation report is a document setting out the fair value of a company's shares, business or assets, prepared by a qua…

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What Is XBRL Filing? Meaning in Indian Company LawXBRL (eXtensible Business Reporting Language) is a machine-readable format for business and financial reports. Under the…

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What Is a Zero-rated Supply in GST? MeaningA zero-rated supply under section 16 of the IGST Act, 2017 is an export of goods or services, or a supply to a Special E…

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TM Symbol vs R Symbol: Meaning in Indian LawThe ™ symbol signals that a business claims a word, logo or slogan as its trademark, registered or not. The ® symbol ind…