Annual Compliance - Company

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Annual Compliance - Company

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Details Of Annual Compliances for Private Limited Company:

For an Indian private limited company, it is crucial to fulfill the compliances as per the Companies Act, 2013. This includes aspects such as the appointment, remuneration, retirement, and qualification of the company’s directors, as well as holding board and shareholder meetings.

Compliance with the RoC is mandatory for registered private limited companies, regardless of their turnover or capital. This means they must fulfill the annual compliance requirement.

All Indian registered companies, including private limited companies, limited companies, one person companies, and section 8 companies, must maintain annual compliances such as annual returns and income tax returns each year. While registering a company is a popular way to start a business, adhering to the necessary compliances can be daunting for entrepreneurs.

To avoid penalties and fines, it is advisable to seek professional help and understand the legal requirements for timely compliance fulfillment.

compliance requirement for Private Limited Company :

The compliance requirements for a private limited company can vary depending on the jurisdiction and country where the company is registered. However, some common compliance requirements that a private limited company must follow include:

  1. Incorporation: A private limited company must first be incorporated in accordance with the laws and regulations of the country where it is registered. This involves registering the company with the relevant government authorities, such as the Companies House in the UK or the Securities and Exchange Commission (SEC) in the US.

  2. Maintenance of registers and records: Private limited companies are required to maintain various registers and records, such as registers of members, directors, and charges, and to keep proper accounting records.

  3. Annual filings: Private limited companies are required to file annual returns with the relevant government authorities, such as the Companies House in the UK or the SEC in the US. These annual returns typically include financial statements and other important company information.

  4. Corporate governance: Private limited companies are required to follow certain corporate governance rules, such as holding annual general meetings, maintaining accurate books of accounts, and complying with relevant company laws and regulations.

  5. Tax compliance: Private limited companies are required to pay taxes on their income, file tax returns, and comply with other tax-related requirements, such as collecting and remitting sales tax.

  6. Employment law: Private limited companies must comply with employment laws, including hiring and termination practices, minimum wage requirements, and other regulations related to employee benefits, health and safety, and working hours.

Topic Annual ROC Filings Requirement Private Limited Companies must file annual accounts and returns disclosing details of shareholders, directors, etc. to the companies’ registrar. Forms to be filed Form MGT-7 (Annual returns) within 60 days of holding the AGM. Form AOC-4 (Financial statements) within 30 days with balance sheet, statement of profit and loss account, and Director report. Annual General Meeting (AGM)Held once every year within 6 months from the financial year’s closing. It’s held for approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc. Meeting should occur at the registration of the company or the city, village, or town in which the registered office is situated. Board Meeting First meeting of the Board of Directors must be conducted within 30 days of incorporation. Four board meetings are required every three months, with a minimum of 2 directors or 1/3 rd of the total number of directors required to be present. Minutes of the meeting must be recorded and maintained at the company’s registered office. Notice of the meeting should be given seven days in advance. Directors Report Directors must disclose details about their directorship in other companies every year by giving a declaration in writing to the company.


Statement Explanation
Punishment for non-compliance If a company fails to comply with the Companies Act regulations, the company and its defaulting members can be fined for the period of default.
Additional fees for delay In case of delay in annual filing, the company will be required to pay additional fees. Hence, timely compliance is recommended.
Dedicated Advisor Your company will have a Compliance Manager as a single point of contact to assist you in maintaining compliance. You can reach out to your Compliance Manager anytime for help.
Accounting All companies are mandated to maintain accounts and prepare financial statements at the end of each financial year. Your Compliance Manager will help maintain your company’s accounts and prepare financial statements.
Secretarial Services Companies must conduct a minimum of four board meetings, an annual general meeting, Directors Report, and Annual Report every financial year. Your Compliance Manager will assist in creating minutes of board meetings and all secretarial reports.
MCA Annual Return Filing An Annual General Meeting should be held within six months from the end of the financial year. MCA annual return filing must be done on or before September 30th. Your Compliance Manager will prepare all the necessary documents and file your company’s MCA annual return.
Income Tax Return Filing Every company must file an income tax return, regardless of income, profit, or loss. Thus, even dormant companies with no transactions are required to file their income tax return annually. Your Compliance Manager will prepare all the necessary documents and file your company’s income tax return.

Annual Compliance – Company FAQ’s

  1. What types of documents are included in company filings and where are they submitted?

On 10 February 2023, company filings refer to submitting legal forms and documents required by the Companies Act 2013 to the Registrar of Companies (ROC). Some common filings include incorporation documents, annual returns, financial statements, changes in directors or shareholders, registered office change, director identification number, company filings for approval, and charge management.

  1. Can I operate a small business without registering it?

As of 10 February 2023, in India, small businesses can operate without registration, but it’s recommended to register the company for benefits and legal compliance. Sole proprietorship, partnership firm, and Hindu Undivided Family (HUF) are commonly used structures for unregistered businesses.

  1. What are the legal requirements for starting a business in India?

On 10 February 2023, starting a business in India requires complying with various legal requirements, such as registering the business, obtaining necessary licenses and permits, and complying with labor and tax laws. Essential legal requirements include choosing a business structure, registering the business name, obtaining a Director Identification Number (DIN), incorporating the business, obtaining PAN and TAN, obtaining other licenses and permits, labor law compliance, tax compliance, getting insurance, and opening a business bank account.

  1. Does appointing a statutory auditor fall under annual compliance?

As of 8 December 2021, appointing a statutory auditor isn’t part of annual compliance. A company can appoint a statutory auditor for five consecutive years or until the next annual general meeting.

  1. What are the compliances for a Private Limited Company?

As of 8 December 2021, after incorporating, a Private Limited Company must maintain compliance, such as appointing an auditor within 30 days, filing income tax returns and annual returns every year.

  1. Is it necessary to hold an annual general meeting (AGM)?

As of 8 December 2021, the Companies Act, 2013 makes it compulsory to hold an AGM to discuss yearly results and appoint auditors. The AGM provides an opportunity for management and shareholders to interact.

  1. Is it mandatory to audit a Private Limited Company?

As of 7 December 2021, all entities that are unregistered under the Companies Act as Private or Public Limited Companies need to get their books of accounts audited every year. Statutory audit is mandatory for all companies.

  1. How do I file the annual returns of my company?

As of 8 December 2021, companies incorporated under the Companies Act, 1956 are required to file the balance sheet in form 23AC and profit and loss account in form 23ACA with the Registrar of Companies (ROC).

  1. Is an audit report mandatory for all Private Limited Companies?

As of 8 December 2021, Private Limited Companies are required to file annual accounts and returns disclosing the details of shareholders and directors to the ROC.

  1. When should a company file its annual return after an AGM?

As of 15 November 2021, all Private Limited Companies are required to file their annual return within 60 days of holding the annual general meeting.

  1. What is ROC Compliance?

As of 7 December 2021, the Registrar of Companies (ROC) governed by the Ministry of Corporate Affairs (MCA) ensures Private Limited Companies and LLPs comply with statutory requirements under the Companies Act.

  1. What form is required for appointing a statutory auditor?

As of 3 February 2023, Form ADT-1 is filed for appointing or replacing the Statutory Auditor.

  1. What is the Companies Director Report and which form should be attached to it? Answer: The Companies Director Report is a report that contains information on a company’s financial status, operations, and management. The form that should be attached to it is MGT-9, which is an extract of MGT-7.

  2. Are audited Financial statements mandatory for annual filing of Private Limited Companies? Answer: Yes, audited financial statements are mandatory for every company from its incorporation. However, the company only needs to file the audited statements.

  3. What does the term “Annual Compliance” mean for a company? Answer: Annual Compliance refers to a specific set of Compliance that a company must fulfill post-incorporation to commence and continue its operations. Various compliances must be completed every year under the Companies Act 2013.

  4. What is the main purpose of implementing Compliance in a company? Answer: The main purpose of implementing Compliance in a company is to adhere to internal policies and procedures and governmental laws. Compliance procedures protect the company’s reputational risk, improve the company’s vision and value, and prevent and detect violations of rules.

  5. What are the two main types of Compliance? Answer: The two main types of Compliance are External and Internal. Both types of Compliance involve a framework of regulations, practices, and rules.