Declaration of Dividend
Assistance in declaring and distributing dividends in compliance with the Companies Act and ROC regulations.Plan Overview
Declaring a dividend is the process by which a company distributes a portion of its profits to its shareholders. This is subject to the availability of sufficient profits and compliance with the Companies Act, 2013. Dividends can be interim or final and must be declared only after ensuring that all statutory requirements are met.Services Included
Form submission
Government Fees
Documents Required
Board Resolution approving the dividend
Financial statements showing sufficient profit
Minutes of the Board or General Meeting
Bank statement showing transfer to Dividend Account
Details of shareholders entitled to receive dividends
Declaration/Statement of unpaid dividend (if any)
Filing of Form MGT-7 and AOC-4 (Annual Returns & Financials)
Process
5-7 Days Estimate
Step 1
Board Meeting: Hold a board meeting to recommend or declare dividends.
Step 2
Shareholder Approval (For Final Dividend): Get the dividend approved in the AGM.
Step 3
Transfer to Dividend Account: Transfer the total amount of declared dividends to a separate bank account within 5 days of declaration.
Step 4
Distribution: The dividend is paid to shareholders within 30 days of declaration.
Step 5
Unpaid Dividend Transfer: Transfer any unpaid dividend to the “Unpaid Dividend Account” within 7 days after the 30 days.
Step 6
Filing with ROC: Update dividend details in annual filings—MGT-7 and AOC-4.
Step 7
Further Compliance: Transfer any unclaimed dividend older than 7 years to the Investor Education and Protection Fund (IEPF).
Recommended For
Companies distributing profits to shareholders.
Review
Average Rating4.9