Related Party Transaction (RPT) Compliance Services in India
Corporate Compliance
Related Party Transaction (RPT) Compliance — Approve It the Right Way
Related Party Transaction compliance means approving and disclosing deals with related parties under the Companies Act, 2013. In short, Section 188 sets when you need board or member approval. However, the rules and disclosures can get complex. Therefore, Prospect Legal maps your transactions, drafts the approvals, and files the forms for you. As a result, your deals stay valid and fully compliant.
10+
Years in Legal Practice
800+
Businesses Served
Sec 188
Companies Act Cover
End-to-End
Approvals & Filings
Clean Governance, Clear Deals
What is Related Party Transaction compliance, and who needs it?
A Related Party Transaction is a deal between a company and a connected person or entity. Simply put, that includes directors, their relatives, and group companies. Therefore, the law watches these deals closely. Above all, it wants to protect shareholders from unfair terms.
Companies must handle RPTs carefully for clear reasons. First, some deals need board approval. Next, larger deals need shareholder approval. Also, you must disclose them in the board report and registers. Because of this, expert support keeps your governance clean.
Documents required for RPT compliance
You need only a few records to start. Also, our team reviews each one before filing. As a result, your compliance stays clean. Here is the full list:
- List of related parties and their relationships
- Details and value of each proposed transaction
- Board and audit committee meeting records
- Existing register of contracts (Form MBP-4)
- The company’s MOA, AOA, and prior approvals
- Any valuation or arm’s-length pricing support
How RPT compliance works — step by step
The process is simple when an expert guides you. Moreover, Prospect Legal handles every stage on your behalf. Here is how it works:
Step 1 — Identify related parties
First, we map every related party and relationship. Because the definition is wide, this step needs care and expertise.
Step 2 — Assess each transaction
Next, we check whether each deal is in the ordinary course and at arm’s length. Therefore, we know which approval each one needs.
Step 3 — Obtain approvals
Then, we draft the audit committee, board, or member approvals as required. In addition, we prepare the minutes and resolutions.
Step 4 — File and disclose
Finally, we file the forms and update the register in Form MBP-4. After that, we add the disclosures to your board report.
Why choose Prospect Legal for RPT compliance?
Many firms offer secretarial help. However, few match our care and accuracy. Here is what sets us apart:
- Correct classification. Because experts assess each deal, you seek the right approval.
- Proper approvals. Also, we draft board and member resolutions that hold up to scrutiny.
- Complete registers. Next, we keep your MBP-4 register accurate and current.
- Fixed pricing. Moreover, our fees stay clear, so you face no surprises.
- Real support. Above all, you can reach a human on call or WhatsApp anytime.
RPT compliance — what’s included
| Service | What we do | Benefit to you |
|---|---|---|
| Related-Party Mapping | Identify all related parties | Nothing slips through |
| Transaction Review | Assess ordinary course and arm’s length | Right approval, every time |
| Approvals Drafting | Prepare committee, board, member resolutions | Valid, defensible deals |
| Register Upkeep | Maintain Form MBP-4 | Inspection-ready records |
| Board Report Disclosure | Add RPT notes to the report | Full statutory disclosure |
| Advisory | Guide you on policy and limits | Prevent future breaches |
Related corporate compliance services
Your company will need more support as it grows. Therefore, explore these services next:
- Corporate Compliance & Secretarial — keep every statutory record in order.
- Alteration of MOA and AOA — amend your charter documents the legal way.
- Group, Holding & Subsidiary Company Compliance — manage compliance across your group.
Frequently asked questions about RPT compliance
What counts as a related party transaction?
It is a deal between the company and a related party, such as a director, a relative, or a group company. Simply put, the connection triggers the rule. Therefore, sales, purchases, leases, and services can all qualify. We review each deal to be sure.
When is board or shareholder approval needed?
Deals outside the ordinary course or not at arm’s length usually need board approval. Also, larger deals crossing set thresholds need member approval. So, the value and nature both matter. We tell you exactly which approval applies.
What is an arm’s-length transaction?
An arm’s-length deal is one priced as if between unrelated parties. In short, the terms are fair and market-based. Therefore, such ordinary-course deals often need less approval. We help you document the arm’s-length basis.
Where must RPTs be disclosed?
You must record RPTs in the register of contracts, Form MBP-4. Also, the board report must disclose material RPTs in Form AOC-2. Therefore, disclosure runs across several documents. We handle all of them for you.
What happens if RPT rules are breached?
A breach can lead to penalties on the company and its officers. Moreover, the transaction may become voidable. As a result, the risk is serious. Call 7000-12-7225 to review your related-party deals.
Planning a related-party deal? Get the approvals right first.
Do not let a missed approval void your transaction. Instead, let our experts map and file it. As a result, your governance stays clean and audit-ready.
