USA Trademarks
Dividends
Declaring and paying dividends isn’t as simple as distributing profits. It requires board approvals, compliance checks, tax deductions, timelines, and proper filings with the ROC. Any mistake—like late payment, incorrect TDS, or missing documents—can create legal and financial complications for both the company and its shareholders.
We manage the entire dividend declaration and payment process so everything stays compliant and smooth.
What we do
Check free reserves and eligibility for dividend declaration
Draft board and shareholder resolutions
Calculate dividend amounts and TDS
Prepare the statement of dividend and supporting documents
Coordinate payment to shareholders
File required forms with MCA
Update registers and records
Why this matters
Dividend errors lead to penalties, disputes with shareholders, and issues during audits or due diligence. A clean dividend process keeps financial records accurate and maintains trust among shareholders.
Frequently Asked Questions
It’s a portion of the company’s profits distributed to shareholders, usually in proportion to their shareholding.
Interim dividend (during the year)
Final dividend (after the financial year, at the AGM)
The board must approve the dividend. Final dividends also need shareholder approval at the AGM.
Yes. Dividend distribution to resident shareholders is subject to TDS if it exceeds the threshold prescribed under the Income Tax Act.
Within 30 days of declaration. Delays attract interest and penalties.