Compounding of Offence
Overview – Compounding of Offence
Compounding of offence is a legal provision under the Companies Act, 2013 and other corporate laws that allows a company or its officers to settle certain minor offences by paying a prescribed fee or penalty, instead of facing prolonged litigation or prosecution. This mechanism helps in resolving regulatory non-compliance efficiently, saving time and costs for the company.
Compounding is applicable to offences that are compoundable, meaning they can be settled without admission of guilt or trial, subject to approval by the appropriate authority such as the Regional Director (RD), Registrar of Companies (RoC), or the Special Court depending on the nature of the offence.
At Cardiff Services, we assist businesses in identifying compoundable offences, preparing the necessary applications, and handling the entire compounding process with the authorities. This service ensures your company quickly rectifies compliance issues and avoids heavy penalties or prosecution.
Features – Compounding of Offence
other corporate laws, ensuring swift and lawful resolution of non-compliance issues. Key features of our compounding services include:
- Applicable to Compoundable Offences
Handling offences specified under the Companies Act and other laws that can be settled through compounding, avoiding prosecution. - Avoidance of Litigation
Facilitates resolution without the need for lengthy court proceedings, reducing legal costs and business disruption. - Government Fee Payment Assistance
Helps calculate and remit the prescribed compounding fees and penalties to the concerned authorities. - Preparation and Filing of Applications
Drafts and files all necessary applications, affidavits, and supporting documents with the Registrar of Companies (RoC) or Regional Director (RD). - Expert Liaison with Authorities
Coordinates with RoC, RD, and other regulatory bodies for smooth processing and quick approval of compounding requests. - Compliance Advisory
Provides guidance on the eligibility of offences for compounding and the implications of compounding on the company and officers. - Timely Resolution
Ensures faster closure of outstanding non-compliance matters, allowing the company to focus on its core business activities. - Legal Safeguarding
Compounding is done without admission of guilt, protecting the company’s reputation and minimizing adverse legal consequences. - Customized Solutions
Tailors compounding services to the specific offence and company circumstances for efficient resolution.
With Cardiff Services, compounding your company’s offence is hassle-free, compliant, and cost-effective—helping you maintain regulatory peace of mind.
Documents Required – Compounding of Offence
To initiate the compounding of offence process under the Companies Act, 2013, specific documents must be prepared and submitted to the relevant authorities such as the Registrar of Companies (RoC) or Regional Director (RD). Cardiff Services ensures meticulous preparation of all necessary paperwork to facilitate smooth compounding.
- Application in Prescribed Form
Application for compounding of offence as per the prescribed form under the Companies Act or respective regulations. - Affidavit/Declaration
Sworn affidavit or declaration by the company’s directors/officers affirming the facts and compliance with the compounding conditions. - Copy of Notice or Complaint
Copy of the notice, complaint, or charge sheet related to the offence (if applicable). - Board Resolution/Consent Letter
Resolution or written consent from the Board of Directors or authorized representatives approving the compounding application. - Details of Offence and Compliance
Comprehensive details about the offence committed, along with documentary proof of rectification or compliance. - Proof of Payment of Compounding Fee
Receipt or proof of payment of the prescribed compounding fee to the concerned authority. - Supporting Documents
Any other relevant documents supporting the application such as correspondence with RoC, explanations, or clarifications.
With Cardiff Services handling your compounding documentation, you can be assured of accuracy and timely submission to expedite the approval process.
Procedure for the Alteration of MoA & AoA
Compounding of offences under the Companies Act, 2013 offers companies a streamlined process to settle certain minor violations by paying a prescribed fee instead of facing prosecution. Cardiff Services guides you through each step to ensure compliance and quick resolution.
Step 1: Identify Compoundable Offence
Determine if the offence committed is compoundable under the Companies Act or relevant corporate laws. Some offences are non-compoundable and require court proceedings.
Step 2: Board Resolution
Convene a Board Meeting and pass a resolution authorizing the company’s representatives to apply for compounding of the offence.
Step 3: Prepare Application
Draft the compounding application in the prescribed form along with:
Affidavits/declarations by directors/officers
Details of the offence committed
Evidence of rectification or compliance
Step 4: Calculate Compounding Fee
Determine the prescribed compounding fee based on the nature of the offence as per the MCA guidelines.
Step 5: Submit Application with Fee
File the compounding application along with supporting documents and the compounding fee to the Registrar of Companies (RoC) or Regional Director (RD) depending on the offence’s jurisdiction.
Step 6: Follow-up and Communication
Maintain communication with the authorities for any queries, additional documents, or clarifications during the processing of the application.
Step 7: Obtain Compounding Order
Upon satisfaction, the authority issues an order allowing the offence to be compounded and closing the matter legally.
Step 8: Maintain Records
Keep a copy of the compounding order and related documents for future reference and compliance audit.
With Cardiff Services managing your compounding process, you benefit from expert advice, precise documentation, and timely filings—ensuring legal peace of mind and minimizing business disruption.
Frequently Asked Questions
A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.
If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.
It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.
For a company name search in Cardiff, you may need:
Proposed company name
Business entity type (Ltd, LLP, Partnership, etc.)
Jurisdiction (Cardiff / UK)
Owner or shareholder details (if applicable)
Business description
A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.
Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms