A Private Limited Company (PLC) formed in India must ensure that all of the requirements of the Companies Act, 2013 are satisfied. The Companies Act of 2013 governs the appointment, qualification, compensation, and retirement of company directors and other matters such as the conduct of board and shareholder meetings. RoC compliance is required for all registered Private Limited Companies. The firm must comply with the yearly compliance obligation regardless of its overall turnover or capital amount. Annual mandatory Compliance of a Private Limited Company in India – Annual Filings – pvt ltd company mca / roc annual filing.
Annual Compliance of Private Limited Company
A private limited company needs to observe various laid down compliances as per the Companies Act, 2013. There are annual returns and audited financial statements to file to R.O.C. (Registrar of Companies).
It’s worthy to note that the cost of Compliance is just a fraction of the penalty that could be levied for non-compliance with laid down regulations.
Key Compliances by Private Limited Company
Commencement of business
Before starting any company or exercising borrowing rights, businesses incorporated in India after November 2019 that have a share capital must acquire a commencement of business certificate. A company must get a start of the business certificate within 180 days after incorporation. If the individual fails to get this certificate, the firm will be fined Rs. 50,000, and the directors will be fined Rs. 1000 per day for each day they are late.
Director’s report
The Director’s report will be prepared using all of the material required by Section 134.
Hold Annual General Meeting
An annual general meeting is required for a private limited corporation once a year. Companies must have their A.G.M. within six months of the end of the fiscal year.
Auditor Appointment (Within 30 days)
Within 30 days of establishment, all registered Indian companies must engage a Statutory auditor. The company will not be permitted to begin operations if it fails to hire an auditor. There is also a monthly penalty of Rs. 300.
M.C.A. Form AOC-4
For the fiscal year 2020-21, registered private limited firms must complete M.C.A. Form AOC-4 on or before November 30, 2021. A penalty of Rs. 200 per day will be imposed if AOC-4 is not filed.
M.C.A. Form MGT-7
For the Financial year 2020-21, you must submit M.C.A. form MGT-7 on or before December 31, 2021. The penalty for failing to file MGT-7 is Rs.200 each day of default or delay.
DIN eKYC
The DIN eKYC or DIR-3 eKYC must be completed by all of the company’s directors. The Director must give a unique personal mobile phone number and a personal email address in DIR-3 eKYC. Failure to file DIN eKYC results in a penalty of Rs. 5000.
Income Tax Return
For the fiscal year 2020-21, income tax returns should be filed on or before September 30, 2021.
Why maintain annual Compliance for a Private Limited Company?
Every certified business must comply with the RoC for ‘Private Limited Companies.’ The firm should follow the yearly compliance standards regardless of its total turnover or capital amount. Every company’s first fiscal year, the ‘annual compliance’ is required following the A.G.M. Annual mandatory Compliance of a Private Limited Company in India – Annual Filings – pvt ltd company mca / roc annual filing.
Key activities of Compliances by Private Limited Company
Board Meeting
The first meeting of the Board of Directors of a business must be held within 30 days after the firm’s establishment. Four board meetings shall be conducted every three months, with a minimum of two directors or one-third of the total number of directors present, whichever is larger. Furthermore, the meeting’s discussion must be written up and recorded in the meeting’s minutes, which must be kept at the company’s registered office. Seven days before the meeting, a notification should be sent out with the date and purpose of the meeting.
Directors Report
Every year, the Director is required to provide information regarding his directorships in other firms. This can be accomplished by annually submitting a written declaration to the firm.
Annual General Meeting
A shareholder meeting must be held at least once a year, within six months after the end of the fiscal year. A.G.M.s are convened to approve financial accounts, declare dividends, appoint or re-appoint auditors, commission, and director compensation, among other things.
Statutory Audit Compliances
By analyzing bank balances, bookkeeping records, and financial transactions, statutory audit compliances evaluate whether a business offers accurate data of its financial condition.
Annual R.O.C. Filings
Private Limited Companies must submit yearly accounts and reports with the registrar, giving the names and addresses of its owners, directors, and other officers.
The following paperwork must be done with the R.O.C. as part of the yearly filing:
- Within 60 days of the AGM, Form MGT-7 (Annual Returns) must be filed.
- A private limited business must file Form AOC-4 with the balance sheet, profit, loss account statement, and Director report within 30 days.
Income Tax Compliances
- Payment of the advance tax every quarter
- Income Tax Return (ITR) are to be filed.
- A business’s revenue or gross receipts exceeded threshold amount in the preceding year relevant to the assessment year, then tax audit report is required to be filed.
- The tax audit report is submitted. company mandatory compliance.
Non-compliance
If a business fails to comply with the Companies Act’s rules and regulations, the firm and its members in default will be fined for the period during which the failure continues. If the yearly filing is delayed, extra fees must be paid. As a result, it is always crucial to meet compliance deadlines.
What are the benefits of Annual Compliance of a Private Limited Company?
- Staying out of trouble with the law.
- Creating a goodwill
- Increasing productivity
- Loyalty and faith.
- Differentiation in the marketplace.
- The financial responsibility of a private limited company is limited to the value of its shares. As a result, it safeguards individual assets and income.
F.A.Q.’s on Annual Compliance of Private Limited Company
Which form to be filed for appointment of auditors?
The Statutory Auditor is appointed or replaced using Form ADT-1.
Which form is attached to the Companies Director Report?
MGT-9 is an extract of M.G.T. -7 that is appended to the company’s director report.
Are audited financial statements mandatory while annual filing of Private limited companies?
From the time of establishment, every business must have audited financial accounts. Only the audited financial accounts must be filed.
Does the appointment of a statutory auditor fall under annual Compliance?
A corporation can appoint a statutory auditor for five years or until the end of the next annual general meeting. As a result, the statutory auditor’s appointment cannot be considered part of yearly Compliance.
What are the compliances for a private limited company?
Once a firm is formed, it is needed to maintain its compliances. Within 30 days, the auditor will be appointed.
Is it necessary to conduct the A.G.M.?
The annual general meeting is a forum for interaction between management and shareholders. The Companies Act of 2013 mandates annual meetings to discuss the financial performance and designate auditors.
Is it mandatory to get a private limited company audited?
The statutory audit, as the name implies, is a required audit for all businesses. Every year, all businesses not registered as Private or Public Limited Companies under the Companies Act must have their books of accounts audited.
How to file annual returns for a Private Limited Company?
- The following papers must be filed with the R.O.C. by businesses formed under the Companies Act of 1956.
- All firms are required to file a balance sheet in form 23AC and a profit and loss statement in form 23ACA.
Is audit report mandatory for all the private limited companies?
Private Limited Companies are obliged to file yearly accounts and reports with the R.O.C., including shareholders and directors. Annual mandatory Compliance of a Private Limited Company in India – Annual Filings – pvt ltd company mca / roc annual filing.
When is the annual return to be filed after the A.G.M.?
Following the A.G.M., all private limited firms must file an annual return within 60 days of the meeting.
What is R.O.C. compliance?
The R.O.C. is officially controlled by the M.C.A. and ensures that Private Limited Companies and L.L.P.’s comply with the A.C.T.’s legislative requirements. The registrar of companies acts as a regulator for the businesses that are registered with them.
How can SattvaCFO help in the annual compliances of Company in India?
SattvaCFO is a cloud-based chief financial officer and compliance management service for small and medium-sized enterprises. Financial statement preparation, income tax return filing, and M.C.A. annual return filing are part of our compliance service. As your business grows, we may additionally supply G.S.T. return filing services, T.D.S. return filing services, advance tax computation, and payroll processing, depending on your needs. Get in touch with a SattvaCFO. Annual mandatory Compliance of a Private Limited Company in India – Annual Filings – pvt ltd company mca / roc annual filing.
