What corporate legal services does Corporate Legit provide?

Corporate Legit offers India Entry Services, International Taxation, Direct & Indirect Taxation, Secretarial & Corporate Legal Compliances, Foreign Direct Investment, Intellectual Property Rights, Licensing and Registration, company registration services, Merger and Amalgamation (M&A), Litigation, Virtual CFO Services, International Advisory, Audit Services, and Registration of NGOs.

What India Entry Services do you offer?

India Entry Services helps foreign companies establish operations in India. The service assists with business structuring, necessary approvals, and compliance requirements for foreign businesses seeking to enter the Indian market.

What does your Corporate Secretarial practice cover?

Our Corporate Secretarial practice handles statutory compliance requirements for companies operating in India, including corporate legal documentation, board meeting management, and regulatory filings.

What are your Corporate Restructuring services?

Corporate Legit’s restructuring services include mergers and acquisitions, demergers, and corporate restructuring activities in accordance with regulatory requirements.

What Intellectual Property services do you provide?

We provide trademark search and registration services in IP databases, along with other intellectual property protection services, to safeguard clients’ IP rights in India.

How does Corporate Legit handle taxation matters?

Our taxation practice provides advice under Direct & Indirect Taxation, including income tax planning, GST compliance, double taxation avoidance advisory, and international taxation matters, to ensure clients remain compliant with Indian tax laws

What Registration & Licensing Services do you offer?

Corporate Legit provides registration and licensing services to help businesses obtain the necessary operational permits and registrations to conduct business legally in India.

What are your Regulatory Compliance & Audit Services?

We provide Corporate Compliance services to help businesses meet their statutory obligations and remain compliant with Indian regulatory requirements, along with supporting them through audit services in India whenever needed.

Do you provide Virtual CFO Services?

Yes, Corporate Legit offers Virtual CFO services for businesses requiring financial management expertise without a full-time Chief Financial Officer.

What makes Corporate Legit’s team qualified?

The senior members of the Firm possess professional qualifications in law, accountancy, company secretarial practices and management with international class experience from working with world-class advisory firms, including Big-4 accounting firms and international law firms.

Do you assist with NGO registration?

Yes, Corporate Legit provides Registration of NGOs (Non-Government Organisation) services to help establish non-profit entities in India.

How can businesses contact Corporate Legit?

Businesses can contact Corporate Legit at +91 9990607535, email at office@thecorporatelegit.com, or visit the office at A-77, Second Floor, Sector-4, Noida 201301, New Delhi NCR, India.

What is a FEMA compliance audit in India?

A FEMA compliance audit India is a structured review of a company's foreign exchange transactions and regulatory filings under FEMA 1999 and RBI's rules and master directions. It identifies missed FC-GPR and FC-TRS filings, FLA return gaps, ODI Annual Performance Report non-filings, valuation non-compliance, and instrument misclassifications that constitute compoundable contraventions.

2. How often should a foreign-owned Indian company conduct a FEMA compliance audit?

At minimum, a FEMA audit for foreign companies India should be conducted annually and mandatorily before any significant transaction including a new equity round, a secondary share sale, an M&A transaction, or an IPO. Violations discovered proactively can be compounded on the company's timeline. Violations discovered during due diligence must be compounded on the transaction's timeline.

What is the penalty for missing the FC-GPR filing deadline?

FC-GPR must be filed within 30 days of share allotment. Late filings attract a Late Submission Fee calculated on the amount involved and the delay period. If the delay is prolonged, the violation becomes compoundable under Section 13 of FEMA, attracting a penalty of up to three times the amount involved or ₹ 2,00,000 for non-reporting contraventions under the April 2025 revised compounding framework.

Can FEMA violations be regularised without going through the compounding process?

Some violations can be regularised by paying a Late Submission Fee through the FIRMS portal, which covers delayed FC-GPR and FC-TRS filings within a defined window. Violations beyond the LSF window, structural violations, or violations involving incorrect instrument classification or wrong FDI route require formal compounding through RBI.

What happens if a company's APR for ODI is not filed for multiple years?

The AD bank is required to block further outward remittances from the Indian entity until all outstanding APRs are filed. Additionally, the non-filing is a FEMA contravention subject to compounding. Backlogged APRs must be filed along with audited financial statements of the overseas entity for each year missed.

Does a FEMA compliance audit cover transfer pricing?

A FEMA compliance audit India focuses on foreign exchange compliance under FEMA and RBI regulations. Transfer pricing compliance under the Income Tax Act is a separate exercise. However, intercompany transactions reviewed during a FEMA audit often have transfer pricing implications and the two reviews are best conducted together for companies with significant related-party cross-border flows.

POSH Act Compliance: Complete Guide for Employers

June 8, 2026
Gaurav Vashistha
IT Technology
0

Table of Content

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 — POSH Act Compliance Guide

Every organization has a responsibility to provide a professional environment that upholds dignity, equality, mutual respect, and safety for all individuals at the workplace. In recognition of the need to protect women against sexual harassment at workplace and to ensure a safe and secure working environment, the Government of India enacted the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”), read with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013. POSH Act compliance requires every employer to prevent and prohibit incidents of sexual harassment at the workplace and provides a comprehensive mechanism for redressal of complaints. The provisions of the Act apply to all women employees, whether employed directly or indirectly, including permanent employees, contractual staff, interns, consultants, trainees, employees working remotely, and those visiting client or third-party locations in connection with their employment.

Why Has the POSH Act Been Enacted?

The POSH Act was enacted to ensure healthy, safe, and professional work environments that promote equality, safety, and professionalism so that women can work with dignity, free from intimidation, hostility, discrimination, or sexual harassment at workplace. POSH Act compliance is therefore not optional — it is a statutory obligation for every employer in India with ten or more employees. The objective of the POSH Act compliance is to ensure a healthy, safe, and professional work environment, promoting equality, safety, and professionalism by the employer at the workplace so that women can work with dignity in an environment free from intimidation, hostility, discrimination, or harassment. The Act derives its foundation from the principles laid down by the Supreme Court in the case of Vishaka and Ors. V. State of Rajasthan, which recognized sexual harassment at workplace as a violation of fundamental rights under Articles 14, 15, and 21 of the Constitution of India.

What Is the Scope and Applicability of the POSH Act Compliance?

POSH Act compliance applies to all workplaces in India without exception — including companies, LLPs, NGOs, government bodies, hospitals, educational institutions, domestic work arrangements, and any place visited during the course of employment, including transportation. There is no minimum employee threshold for applicability of the Act itself; the threshold of ten employees applies only to the mandatory constitution of an Internal Committee. POSH Act compliance is applicable to all workplaces, including:

Companies, LLPs, firms, NGOs
Government bodies and authorities
Hospitals, educational institutions
A dwelling place or house that employs or benefits from the employment of a domestic worker
Any place visited during the course of employment (including transportation)

What Are the Key Compliances Required Under the POSH Act?

The key compliances under the POSH Act include constituting an Internal Committee (IC) for organizations with ten or more employees, framing and implementing a POSH Policy, conducting regular awareness and training programmes, establishing a proper complaint redressal mechanism, and filing an Annual Report with the employer and District Officer. Each of these is a distinct statutory obligation — not a voluntary best practice.

1. How Must an Internal Committee Be Constituted Under POSH Act Compliance?

The constitution of an Internal Committee (“IC”) is mandatory for every organization having ten (10) or more employees. The IC shall consist of the following members: A. Presiding Officer

A senior woman employee employed at the workplace
Must be at a sufficiently senior level to ensure authority and independence

B. Employee Members

Minimum two members from amongst the employees
Preferably committed to:
- Cause of women, or
- Possessing legal knowledge/experience in social work

C. External Member

One member from:
- NGO or association committed to the cause of women, or
- A person familiar with issues relating to sexual harassment

2. What Should a POSH Policy Contain?

The POSH Policy ensures a safe, secure, and dignified workplace free from sexual harassment at workplace and should be framed in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The POSH policy applies to all employees and covers both physical and virtual workplaces. All organizations are required to have the POSH policy in place and to constitute an Internal Committee (IC), wherever required, for addressing and redressing complaints relating to sexual harassment. The POSH policy further provides for a fair, confidential, and time-bound inquiry mechanism for the resolution of complaints. Overall, the policy promotes dignity, equality, professionalism, and mutual respect at the workplace.

3. What Awareness and Training Is Required Under POSH Act Compliance?

Employers are required to conduct regular POSH awareness and sensitization programmes for employees and specialized training sessions for IC members to ensure effective implementation of the POSH Act compliance.

4. What Complaint Redressal Mechanism Must Organizations Establish?

Organizations must establish a proper mechanism for filing and redressal of complaints, which includes:

Timely inquiry and resolution
Maintenance of confidentiality
Fair hearing and equal opportunity to both parties

5. What Are the Annual Report Filing Requirements Under POSH Act Compliance?

The Annual Report under the POSH Act compliance is prepared by the Internal Committee to ensure compliance with the provisions of the Act. The report includes details such as:

Number of complaints received
Number of complaints disposed of
Number of complaints pending
Awareness programmes and training sessions were conducted during the year

The report is submitted to the employer and, wherever applicable, to the District Officer. Such reporting promotes transparency, accountability, and a safe workplace culture.

What Is the SHE-BOX Portal and How Does It Support POSH Act Compliance?

The SHE-BOX (Sexual Harassment Electronic Box) Portal is an online platform introduced by the Government of India that allows women employees to register complaints of sexual harassment at workplace directly online. It is managed by the Ministry of Women and Child Development and forwards complaints to the concerned employer or the Internal Committee for action, while also allowing the complainant to track complaint status in real time. The portal is managed by the Ministry of Women and Child Development and allows women working in both the organized and unorganized sectors, whether in public or private organizations, to file complaints of sexual harassment online.Once a complaint is submitted through the SHE-BOX Portal, it is forwarded to the employer concerned or the Internal Committee (IC) for necessary action and monitoring of the complaint redressal process. The portal also enables the complainant to track the status of the complaint. The objective of the SHE-BOX Portal is to ensure easy access to complaint registration, promote accountability among employers, and strengthen POSH Act compliance by providing a transparent and efficient grievance redressal mechanism.

What Is the Timeline of the POSH Act Compliance Process?

The POSH Act compliance process follows a strictly defined timeline — complaints must be filed within 3 months of the incident, the respondent must receive notice within 7 working days, the inquiry must be completed within 90 days, and the employer must implement IC recommendations within 60 days of receiving the inquiry report. Missing any of these deadlines exposes both the IC and the employer to legal liability.

Stage	Action Step	Legal Timeline / Deadline
1	Filing of Complaint	Within 3 months from the date of the incident. The IC may be extended by a further 3 months if sufficient cause is shown in writing.
2	Notice to Respondent	Within 7 working days from receipt of the complaint, the IC shall forward a copy to the respondent.
3	Submission of Reply by Respondent	Within 10 working days from receipt of the complaint copy, the respondent must submit a written response with documents and witnesses.
4	Completion of Inquiry	The inquiry shall be completed within 90 days from the date of receipt of the complaint.
5	Submission of Inquiry Report	Within 10 days from completion of the inquiry, the IC shall submit its report to the employer and provide copies to both parties.
6	Implementation of Recommendations	The employer shall act upon IC recommendations within 60 days from receipt of the inquiry report.
7	Filing of Appeal	Any aggrieved party may file an appeal before the appropriate authority within 90 days from the date of the IC recommendations.

What Are the Penalties for Non-Compliance With the POSH Act?

Failure to meet POSH Act compliance requirements can attract a monetary penalty of up to INR 50,000 for non-constitution of the Internal Committee. Repeated non-compliance additionally risks cancellation, withdrawal, or non-renewal of business licences and statutory approvals. Repeat offences attract enhanced penalties under the Act and applicable rules. Failure to constitute the Internal Committee (“IC”) or non-compliance with the provisions of the POSH Act may attract a monetary penalty of up to INR 50,000. In cases of repeated non-compliance, the employer may additionally face cancellation, withdrawal, or non-renewal of necessary licences, registrations, or other statutory approvals required for carrying on business. Further, repetition of the same offence may attract enhanced penalties as prescribed under the provisions of the Act and applicable rules.

Conclusion

Following the POSH Act compliance helps organizations create a safe, respectful, and comfortable workplace for all employees. It ensures that women employees can work without fear of harassment, discrimination, or inappropriate behaviour at the workplace. By forming an Internal Committee, implementing a POSH Policy, conducting awareness sessions, and providing a proper complaint mechanism, organizations can maintain a healthy and professional work environment. These measures not only help in complying with the law but also improve employee trust, confidence, and workplace culture. Proper POSH Act compliance also protects the organization from legal actions, penalties, and reputational damage. Therefore, every organization should take necessary steps to promote dignity, equality, safety, and mutual respect at the workplace. If your organization needs support with the POSH Act compliance — from drafting a policy and constituting an Internal Committee to conducting awareness training — CorporateLegit provides end-to-end advisory support to help you build a fully compliant and respectful workplace.

Frequently Asked Questions

Is the POSH Act compliance mandatory for small businesses and startups?

Yes. POSH Act compliance in terms of having a policy and providing a safe workplace applies to all organizations regardless of size. The mandatory Internal Committee requirement applies specifically to organizations with ten or more employees. Organizations with fewer than ten employees must instead refer complaints to the Local Committee constituted by the District Officer.

Who can be appointed as the External Member of the Internal Committee?

The External Member must be from an NGO or association committed to the cause of women, or a person familiar with issues relating to sexual harassment. The external member cannot be an employee of the same organization and is appointed to bring independence and impartiality to the IC’s functioning.

Does the POSH Act compliance cover remote and work-from-home employees?

Yes. The POSH Policy applies to both physical and virtual workplaces. Remote employees, employees on client visits, and those using company communication platforms are all covered under the Act. Sexual harassment through digital channels — emails, messaging apps, video calls — falls within the scope of the POSH Act.

What happens if the Internal Committee fails to complete the inquiry within 90 days?

The IC is required to complete its inquiry within 90 days from receipt of the complaint. Failure to adhere to this timeline is a compliance lapse that can attract regulatory scrutiny. In exceptional cases, the reasons for delay must be documented. The parties also retain the right to appeal before the appropriate authority if timelines are not followed.

Can a male employee file a complaint under the POSH Act?

No. The POSH Act specifically protects women employees and covers complaints filed by women against any person at the workplace, regardless of gender. Male employees who experience workplace harassment may seek recourse under other applicable laws, but the POSH Act framework is exclusively available to women.