MCA Compliance for Insurance Company

MCA Compliance Checklist for Insurance Companies

The MCA compliance checklist for insurance companies in India is as follows:

• File necessary resolutions, declarations, and annual filings with the MCA.
• Obtain prior permission to set up an independent Insurance Self-Net Platform.
• Submit the application Form ISNP-1 and pay a non-refundable fee.
• Ensure compliance with IRDAI guidelines regarding pricing & information transparency.
• Prepare annual performance reports, including risks and management details.
• Ensure compliance with FEMA regulations, including annual reporting to the RBI.

Who Needs to Conduct Insurance Company MCA Compliance?

All registered insurance companies must ensure insurance company MCA compliance. Some of them are as follows:

• Primary insurers covering all licensed life, general & health insurance companies.
• Intermediaries, including insurance brokers, web aggregators, corporate agents, and surveyors.
• Companies operating in reinsurance.

What are the Key Forms Filed to Ensure Insurance Company Compliance under MCA?

In India, the insurance companies must file the following forms to ensure insurance company compliance under MCA, as discussed below:

• AOC-4 & AOC-4 XBRL: Insurance companies must file audited financial statements using Form AOC-4 and AOC-4 XBRL within 30 days of the AGM.
• MGT-7: Insurance companies must file an annual return comprising details of resolutions passed in meetings, annual accounts and board reports via Form MGT-7 within 60 days of the AGM.
• ADT-1: Registered insurance companies must file Form ADT-1 for issuing a notice to the ROC regarding the appointment of an auditor within 15 days of the AGM.
• DIR-3 KYC: The registered insurance entities must file Form DIR-3 to conduct an annual KYC update for a director holding a DIN.
• DIR 12: It is important to file DIR-12 for reporting any appointment, cessation, or regularisation of directors within 30 days of the AGM.
• DIR-8: The directors of insurance companies must submit a non-qualification return via Form DIR-8 to intimate their non-disqualification or disqualification status.
• MGT-14: It is crucial for insurance companies to file Form MGT-14 to report any modification in the MoA & AoA, as part of their ROC compliance obligations.
• CSR-2: It is crucial for insurance companies to file a CSR-2 return with the MCA & form a CSR committee to draft a policy in compliance with the CSR obligations.
• CHG-1: Insurance companies must file Form CHG-1 with the RoC to report any modification of borrowing/ charge on assets.
• PAS-3 & SH-7: Filing form PAS-3 is crucial for completing the allotment of shares, and form SH-7 is required to report any changes in share capital.
• INC-22: It is crucial to file Form INC-22 to notify MCA regarding any changes in the registered office address of the insurance company.
• INC-24: It is mandatory for insurance companies to file INC-24 to report any changes or modifications in the entity name, within 30 days of passing a special resolution.
• MBP-1: Filing of form MBP-1 is a crucial statutory compliance that requires insurance companies to disclose/ declare the director's concern or interests in other companies.
• BEN-1 & BEN-2: Form BEN-1, followed by BEN-2, must be filed to report any declaration made by significant beneficial owners within 30 days of the beneficial owner acquiring their status or ownership changes.

Different Types of Annual MCA Compliance for Insurance Company

The different types of annual MCA compliance for insurance company are as follows:

• Mandatory MCA Filing: MCA filings are an annual compliance requirement to file mandatory Forms reporting financial statements, annual returns, and returns of deposits.
• Annual General Meeting: Conducting an annual general meeting is a form of MCA compliance needed to approve financial statements, reappoint directors, and appoint auditors.
• Secretarial Regulatory Compliance: Secretarial regulatory compliance is an MCA annual compliance to ensure submission of audited balance sheet, solvency ratio statement, and financial statement using XBRL format.
• Corporate Governance Compliance: Corporate governance compliance is a crucial MCA annual requirement mandatory for reporting on the secretarial audit, CSR requirements, and changes in share capital.
• Event-Based Compliance: Event-based compliance is an MCA annual requirement for filing resolutions passed by the board or shareholders (if any).
• Additional MCA Compliance: The entities must obtain approvals for related-party transactions to ensure independent director compliance and establish a vigil mechanism (if required).