Use this educational guide to prepare corporate and compliance materials for qualified professional review before a transaction.
Deal Blockers
Each transaction has its own diligence scope. These are practical starting points to discuss with company counsel and other qualified advisers.
Review whether the company has outstanding foreign assets or liabilities and whether FLA reporting applied for the relevant years.
Shares allocated on cap table spreadsheets that were never formally recorded with the ROC via Form PAS-3 and MGT-14 or without authorized capital increase (SH-7).
Review the nature of outstanding loans or receipts and confirm DPT-3 applicability with a Company Secretary or other qualified professional.
Founders who missed annual DIR-3 KYC deadlines finding their DINs deactivated right when signing shareholder agreements or board resolutions.
Large accumulated input tax credits on books that are unsupported by supplier GSTR-1 filings, representing latent tax liabilities and interest exposure.
LanceIQ provides MCA and GST monitoring and prepares evidence for professional review. Contact us to discuss additional support.
Traditional startups scramble to pull receipts, reconstruct board resolutions, and chase former accountants whenever an audit or investment round approaches.
Keep filing acknowledgements, board and shareholder approvals, statutory registers, tax records, and material contracts together. Have a qualified professional assess the material before presenting it in a transaction.
FAQ
During legal and statutory due diligence (DD), investor counsel reviews: (1) Corporate standing: Certificate of Incorporation, Memorandum and Articles of Association (MoA/AoA), board meeting minutes, and annual ROC filings (AOC-4 and MGT-7), (2) Capital structure: Cap table reconciliation against MCA Form PAS-3 and MGT-14, SH-4 share transfer deeds, and statutory share registers, (3) FEMA / RBI compliance: Form FC-GPR filing receipts, Foreign Inward Remittance Certificates (FIRC), valuation reports, and annual FLA returns, (4) Tax compliance: Corporate ITRs, 26AS/AIS reconciliation, and GST filing regularity, and (5) Litigation searches across High Courts, District Courts, and NCLT.
A transaction-specific review often considers corporate records, capitalisation and statutory registers, material agreements, tax filings, foreign-investment reporting where applicable, and disclosed disputes. The scope is set by the investor and counsel, so a qualified professional should confirm the checklist.
Maintain organised corporate, tax, financial, investment, and material-contract records. Reconcile the cap table and statutory registers, retain filing acknowledgements, and ask a qualified professional to review gaps before sharing materials.
LanceIQ currently provides MCA and GST monitoring, counterparty Deep Reports, and evidence preparation for professional review. Contact LanceIQ to discuss the current scope and any partner-professional support.
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