Corporate law is the branch of law containing various laws, rules, regulations and practices governing the formation, operation, compliance and liquidation of corporate entities. It is essentially the body of law which regulates the business and conduct of corporate legal entities. In India, a Company and a Limited Liability Partnership
have a corporate entity status and the business thereof is regulated by Company laws.
The Company Law in India is under the purview of the Ministry of Corporate Affairs and has delegated the powers to Regional Directorates (“RD’) and Registrar of Companies (“RoC’). The Regional Directorates and Registrar of Companies together act as the statutory and administrative executors of corporate law in India.
In the recent past, the Indian corporate law arena has undergone several reforms in line with the global best practices. The enactment of Companies Act, 2013 laid the foundation for increased transparency, objectivity, governance and regulation of corporate entities along with facilitating the ease of doing business in India. The Regulators have stepped up scrutiny and regulation of the corporate sector in order to weed out functionally inactive companies and companies not undertaking periodical compliances.
Coupled with the economic reforms in India, the Regulators had resorted to taking extreme measures including striking off non-compliant companies and disqualification of its Directors. Penalty and consequences for non-compliance have been made stringent.