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A Private Limited Company (PLC) is a legal entity with a distinct personality that must maintain its active status by regular filings with the MCA. Each business must file an annual return and audited financial statements with the MCA for each fiscal year. The RoC filing is required regardless of the revenue generated, whether it is zero or in crores. Whether a private limited company conducts a single business or none at all, annual compliances for private limited companies are mandatory for all certified companies. Mandatory Annual Compliance of Company in Mumbai, Important Compliances for Limited Company.

Annual Compliance of Company in Mumbai

The phrase “Compliance” refers to the capacity to adhere to instructions, a set of regulations, or a request. A private limited company registered in India must guarantee that all compliance requirements under the Companies Act, 2013 are met. The Companies Act, 2013 oversees the appointment, qualification, salary, and retirement of the directors of a company, as well as other matters such as the conduct of board meetings and shareholder meetings. Compliance with the RoC is required for registered Private Limited Companies. Regardless of overall revenue or capital, the business must meet the annual compliance obligation.

 

Every company registered in India, whether it is a private limited company, a sole proprietorship, a limited liability company, or a section 8 company, is required to file annual compliance documents such as annual returns and income tax returns. While incorporation is the most common method of beginning a business, certain compliances must be followed once the business is incorporated. Managing the day-to-day operations of the business while adhering to the complex corporate regulations can be a challenge for the entrepreneur. Thus, it is always preferable to seek expert assistance and gain an understanding of the legal requirements in order to ensure timely compliance with these requirements and avoid penalties or fines.

 

Benefits of Annual Compliance of Company

The benefits of Annual Compliance of Company in Mumbai are as follows:

1. Independent Legal Entity

According to the Act, a company is a distinct legal body and a juristic person. As a result, a business can own assets and incur debts in its own name. Members (Shareholders) and directors of a corporation are not liable to the organization’s creditors for such debts. A business can acquire, hold, enjoy, and alienate property in its name as a juristic person. A member cannot make a claim against the company’s property as long as the business continues to operate.

2. Capability of sharing

One of the primary advantages of Pvt. Ltd Company Compliance is the opportunity to transfer shares. A shareholder can simply manage the shares of a corporation limited by shares. Transferring shares is as simple as filling and signing a share transfer form and providing the buyer of the shares the share certificate.

3. Infinite Succession

A business, as a distinct legal entity, is unaffected by the death of any member and continues to exist regardless of membership changes. Perpetual succession refers to a business’s continued existence until it is lawfully dissolved. Mandatory Annual Compliance of Company in Mumbai, Important Compliances for Limited Company.

 

Documents required for Annual Compliance of Company in Mumbai

Every business, whether a Private Limited Company or a Sole Proprietorship, is obliged to file an annual return following the conclusion of each fiscal year. The procedure of filing an annual report for a business is quite straightforward. As required by the Companies Act 2013, businesses in Mumbai must file the form digitally. We will discuss the annual compliance requirements for public limited companies in this article.

 

If you want extensive information about the Penalty for Failure to File Annual Return by a Private Limited Company or a Public Limited Company, you must subscribe to our blog.

 

Annual Return Certification E Form Mgt-8

 

Companies That Are Listed

• All Businesses that have—

 

• A paid-up share capital of at least ten crore rupees or a turnover of at least fifty crore rupees

 

• Annual Return E Form Mgt-7 signature

 

Listed Companies Public Companies Private Limited companies that have the following characteristics:

• Paid-up share capital in excess of Rs. 50 lakh Turnover in excess of Rs. 2 crore
• If a company is found to be in violation, he or she will be fined a minimum of Rs. 50000 and a maximum of Rs. 5 lakh.

 

What are the due dates for the Annual Compliance of the Company in Mumbai?

According to The Companies Act, 2013, every business is expected to file annual accounts and annual returns within 30 days and 60 days, respectively, of the completion of the Annual General Meeting. Annual accounts are filed with the ROC in accordance with Section 129 (3) and 137 of the Companies Act, 2013 read with Rule 12 of the Company (Accounts) Rules, 2014, while annual returns are filed in accordance with Section 92 of the Companies Act, 2013 read with Rule 11 of the Companies (Management and Administration) Rules, 2014.

Commencement of business

The start of business (within 180 days) Before launching any business or exercising borrowing rights, companies registered in Mumbai after November 2019 must get a commencement of business certificate. The certificate of commencement of business must be received within 180 days of the Company’s incorporation.

If the individual fails to secure this certificate, the firm will be fined Rs. 50,000 and the directors will be fined Rs. 1000 per day for each day of default. Mandatory Annual Compliance of Company in Mumbai, Important Compliances for Limited Company.

Appointment of an Auditor (Within 30 days)

Within 30 days of incorporation, all Indian companies must employ a Statutory auditor. If the company does not appoint an auditor, it will be unable to conduct business. Additionally, there is a monthly penalty of Rs. 300.

Return of Income

Income tax returns for the fiscal year 2020-21 must be filed on or before September 30, 2021.

MCA AOC-4

MCA Form AOC-4 must be filed by registered private limited firms on or before 30th November 2021 for the fiscal year 2020-21. Failure to file AOC-4 will result in Rs. 200 penalties for each day of default or delay.

MCA MGT-7

For FY2020-21, it is mandatory to file MCA form MGT-7 on or before December 31, 2021. Failure to file MGT-7 results in an Rs.200 penalty every day of default or delay.

eKYC DIN

The DIN eKYC or DIR-3 eKYC must be completed for each director of the company. The Director must supply a unique personal mobile number and an email address for DIR-3 eKYC. There is an Rs. 5000 penalty for failure to file DIN eKYC.

Annual General Meeting Organize

A private limited company must convene an annual general meeting at least once a year. Companies are expected to hold their annual general meeting within six months of the fiscal year’s end.

Report of the director

The Director’s report will be prepared using all of the material required by Section 134.

When does a Company require a tax audit?

If the annual revenue of the business exceeds Rs 1 crore, a tax audit is required. A Chartered Accountant files a Tax Audit. 6. Tax Compliances: Depending on the nature of the business, it may be necessary to obtain multiple tax registrations such as GST, ESI, EPF, professional tax, and excise tax.

Consequence for non-compliance

Noncompliance exposes you to financial losses, security breaches, licence revocations, company interruptions, substandard patient care, trust erosion, and a tarnished reputation.

Why SattvaCFO?

SattvaCFO has a proven track record of simplifying the process of Annual Compliance of Company in Mumbai. Our experts will assist you in identifying loopholes and determining and processing what is necessary to expedite the procedure. Mandatory Annual Compliance of Company in Mumbai, Important Compliances for Limited Company.