06 August 2009
We are in the process of setting up a power generation and supply company in Maharashtra.
Can anybody help me with the compliances from company law and legal side. Does any one have a checklist or a compliance chart for setting up of power generation/ supply company.
I have researched on the topic and note that the Electricity Act, 2003 and the Rules framed thereunder, Electricity Supply Act, Electricity Regulatory Commission Act would be applicable. Further, certain licences also need to be obtained from MERC.
19 July 2024
Setting up a power generation and supply company in Maharashtra involves compliance with several regulatory frameworks, including company law, electricity regulations, and various licensing requirements. Here's a checklist or compliance chart that you can consider for setting up such a company:
### Company Law Compliance:
1. **Incorporation of Company**: - Register the company with the Registrar of Companies (RoC) under the Companies Act, 2013 or earlier as applicable. - Obtain the Certificate of Incorporation.
2. **Appointment of Directors and Compliance**: - Hold the first Board Meeting to appoint directors, adopt Articles of Association (AoA), and appoint the first auditors. - Issue shares and allot them properly as per the company's AoA.
3. **Statutory Compliances**: - File necessary forms and documents with the RoC periodically, such as Annual Returns, Financial Statements, etc. - Comply with requirements regarding Board Meetings, Annual General Meetings (AGMs), and other statutory meetings.
### Electricity Regulatory Compliance:
1. **Licenses and Permits**: - Obtain necessary licenses under the Electricity Act, 2003 and rules framed thereunder from the Maharashtra Electricity Regulatory Commission (MERC). - This may include Generation License, Distribution License, Trading License, etc., depending on your specific activities.
2. **Compliance with Electricity Act and Regulations**: - Ensure compliance with the provisions of the Electricity Act, 2003 and regulations issued by the Central Electricity Authority (CEA) and State Electricity Regulatory Commission (SERC). - This includes compliance with technical standards, safety regulations, grid connectivity norms, etc.
3. **Tariff and Consumer Regulations**: - Adhere to tariff regulations set by MERC. - Comply with consumer grievance redressal mechanisms and consumer protection regulations.
### Tax and Financial Compliance:
1. **Tax Registrations**: - Obtain Goods and Services Tax (GST) registration for the company. - Register for other applicable taxes such as Income Tax, Professional Tax, etc.
2. **Financial Reporting**: - Prepare financial statements in compliance with Indian Accounting Standards (Ind AS) or Accounting Standards (AS) as applicable. - Ensure compliance with taxation laws regarding income tax returns, tax audits, etc.
### Environmental and Regulatory Compliance:
1. **Environmental Clearance**: - Obtain necessary environmental clearances and approvals from the Maharashtra Pollution Control Board (MPCB) or relevant authority.
2. **Labour Laws**: - Comply with labour laws related to employment, safety, health, and welfare of employees.
### Additional Considerations:
- **Contractual Agreements**: Draft and execute agreements with suppliers, customers, contractors, etc., ensuring compliance with legal requirements. - **Intellectual Property Rights**: Consider protection of intellectual property rights such as trademarks, patents, etc.
### Professional Assistance:
Given the complexity and importance of compliance in the power sector, it is advisable to seek professional assistance from legal advisors, chartered accountants, and industry consultants who specialize in energy and power sector regulations. They can provide customized guidance based on the specific nature and scale of your operations in Maharashtra.
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