Annual Compliances for Private Limited Company

Compliance is the capacity to adhere to directives, a list of rules, or demands.

An Indian private limited company is required to make sure that the 2013 Companies Act standards are adhered to.

The Companies Act, 2013, which was passed in 2013, regulates the appointment, qualification, compensation, and retirement of the Company's directors as well as other issues including holding board meetings and shareholder meetings.

RoC compliance is necessary for Private Limited Companies that have been registered. The business must fulfill the annual compliance obligation regardless of overall revenue or capital expenditure..

Private limited firms, one-person businesses, limited corporations, and section 8 businesses—all of which have been registered in India—must maintain annual compliances, which include filing annual returns and income tax returns. Despite the fact that company registration is the most popular option to start a business, several compliances must be met once the firm has been registered.

Running daily operations while adhering to the complex corporate laws could seem challenging for the business owner. To ensure timely completion of these compliances and prevent penalties or fines, it is therefore always best to seek the help of professionals and understand the legal requirements.

In this section, we'll look at some of the typical legal compliances that private limited companies must uphold.

What are compliances to be maintained by the Private Limited Company?

The requirements for Private Limited Companies' compliance have changed significantly over time. The 2021 private limited company compliance due dates are listed below.

Statutory Audit Compliances

By examining the bank balances, bookkeeping records, and financial transactions, statutory audit compliances are carried out to determine whether a business provides accurate facts about the financial status.

• A company's statutory auditor is chosen.
• The company's auditors will complete the yearly accounts.

Annual ROC Filings

Annual accounts and reports detailing the owners, directors, and other stakeholders of Private Limited Companies are required to be submitted to the company registrar.

The ROC must receive the following forms each year: Within 60 days of the annual general meeting, Form MGT-7 (Annual Returns) must be filed.

Within 30 days, a private limited company must submit Form AOC-4 (Financial Statements), which includes the balance sheet, the statement of profit and loss, and the director report.

Annual General Meeting

Once a year, within six months of the conclusion of the fiscal year, a meeting of the shareholders must be conducted.

The purpose of AGMs is to, among other things, approve financial statements, issue dividends, appoint or remove auditors, give out commissions, and pay directors.

The meeting is held within regular business hours on a day that is not a holiday. It must take place in the same place the company was registered, or in the town, city, or municipality where the registered office is located.

Board Meeting

The first meeting of the Board of Directors of such firm shall be held within thirty (30) days after the date of formation of such business.

The board shall meet four times in each three-month period, with a quorum of not less than two directors nor less than one-third of the total number of directors, as the case may be.

The discussion from the meeting must also be recorded, added to the minutes, and kept on file at the company's registered office.

A reminder regarding the meeting's timing and purpose ought to be distributed seven days beforehand.

Directors Report

The director's tenure as a director of another company must be stated annually. One way to do this is to give the corporation an annual written declaration.

Income Tax Compliances

• advance tax payments are made quarterly.
• the submission of income tax returns
• Tax audit (required if a company's gross receipts or revenue in the year prior to the assessment year exceeded Rs. 1 crore).
• Report of Tax Audit submission.

Other event-based Compliances

Every time an event occurs within the company, a number of additional compliances must be done in addition to the annual filings.

Here are specific instances of such events:

• Alteration to the company's paid-up or authorized capital.
• issuance of new shares or transfer of new shares, lending to other businesses, lending to directors
• appointment of a full-time or managing When a bank account is opened, terminated, or the signatories of a bank account change, the director is paid.
• the appointment or replacement of the company's statutory auditors.
•  

For each of these events, the registrar shall receive a particular form within a particular period. If this is not done, additional fines or penalties may be levied. Thus, fast observance of such norms is required.

Non-compliance

Both the corporation and the defaulting members are subject to fines for the duration that the default has existed if a corporation violates the rules and legislation of the Companies Act.

If the yearly filing is postponed, there are additional fees that must be paid. Consequently, it is best to finish the compliances on time.

Dedicated Advisor

Your company will be assigned a dedicated Compliance Manager who will be your single point of contact in order to help you maintain your business compliant. If you have any questions about your Company's compliance, your Compliance Manager is always available to help.

Accounting

the business must keep accounts and create financial statements at the end of the fiscal year. Your company's financial statement will be prepared at the end of the fiscal year by our Compliance Manager, who will also help your company with account management.

Secretarial Services

A minimum of four board meetings, an annual general meeting, a directors report, and an annual report must be held by businesses every fiscal year. In order to create all secretarial reports and board meeting minutes, our Compliance Manager will assist you.

MCA Annual Return Filing

A company's annual general meeting must be held no later than six months after the fiscal year's conclusion. Also due by September 30th at the latest is the MCA annual return. Your company's MCA yearly return will be prepared and submitted by our Compliance Manager.

Income Tax Return Filing

A company must submit an income tax return regardless of revenue, profit, or loss. As a result, even dormant companies with no transactions are required to file an income tax return each year. Our Compliance Manager will prepare every piece of paper, including your company's income tax return.