Private Limited Company Annual Compliance
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Know About the Essential Annual Compliances for Private Limited Company
A private limited company must ensure to following compliances as determined by the Companies Act, 2013.
The Companies Act, 2013 legalizes appointment, compensation, retirement, and qualifications of the Company’s Directors and other perspectives, including organizing stakeholders and business meetings.
Private Limited Companies must meet ROC compliance. Regardless of capital earnings or total turnover, the organization must obey the rules of annual compliance norms.
All registered organizations in India, such as Private Limited Company, section 8 company, public limited company, and OPC, have to uphold yearly compliance, including Income tax returns and annual turnover. However, registering your company is ideal for making your business authorize in the market, but one must also follow annual compliances associated with it.
Handling a business’s daily operations and obeying corporate law compliances is a time-consuming effort; it can be daunting for entrepreneurs. Hence getting the help of professionals is appropriate. CSFiling Online Pvt Ltd will work for you as a consultant to make sure timely completion of compliances and protect you from fines and penalties.
[/ux_text] [/col] [/row] [/section] [section label=”Section with arrow” bg=”2150″ dark=”true” padding=”59px” height=”300px” border=”1px 0px 0px 0px” border_color=”rgb(235, 235, 235)”] [row] [col span=”5″ span__sm=”12″ padding=”20px 20px 20px 20px” bg_color=”rgba(255, 255, 255, 0.424)” text_depth=”2″ border=”1px 1px 1px 1″ border_style=”dashed” border_color=”rgb(255, 255, 255)”]What Compliances Private Limited Company Has To Maintain Compulsorily?
The compliances norms of Private Limited companies have been amended tremendously in a couple of years. Private Limited Company has to abide by basic compliances compulsorily which are explained underneath:-
[/col] [col span=”7″ span__sm=”12″ text_depth=”2″]Origination of business (within 3 months)
It is mandatory for a registered private limited company with minimum paid-up capital post-2019 to acquire commence of business certification prior to starting any business. A company must receive the business commencement certificate within 3 months of company registration.
If any business owner or responsible person of the company becomes unsuccessful in acquiring this certificate, they have to pay a monetary fine of Rs 50,000 for the organization and INR 1000 per day for the director for every day of non-attendance
[/col] [/row] [/section] [section label=”Media Center” bg_color=”rgb(193, 193, 193)” bg_overlay=”rgba(255, 255, 255, 0.85)” padding=”60px”] [row style=”large” h_align=”center”] [col span=”3″ span__sm=”12″ align=”right”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]Appointment of Auditor (Within one month)
The appointment of a statuary auditor is mandatory for a registered Indian organization within one of the registration. If the company becomes unsuccessful in designating an auditor, the company won’t get permission to start a business. There is also a penalty of INR 300 every month.
[/ux_text] [/col] [col span=”5″ span__sm=”12″] [ux_image id=”3187″] [/col] [col span=”3″ span__sm=”12″ align=”left”] [ux_text text_color=”rgb(0,0,0)”]DIN eKYC
It is obligatory for all the company’s directors to file for the DIN eKYC or DIR-3 eKYC. The Director must present a specific mobile number and personal Email ID. If the company become failed to file the DIN eKYC, they need to pay Rs. 5000 penalty.
[/ux_text] [/col] [/row] [row style=”large” h_align=”center”] [col span=”11″ span__sm=”12″ align=”right”] [tabgroup style=”tabs” nav_style=”normal”] [tab title=”Organizing Annual General Meeting”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]Companies must organize an Annual General Meeting once each year within 6 months before the financial year closing. AGM is generally arranged to announce dividends, financial records approval, selection and re-selection of auditors, payment, directors’ salaries, etc.
[/ux_text] [/tab] [tab title=”Statutory Audit Compliances”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]The companies need to perform statutory audit compliances to ensure that they provide correct financial stature information. The company’s financial status is defined by checking financial transactions, assets, bank balance, bookkeeping statements, etc. Companies have to designate a certified statutory auditor t check and verify the company’s annual bank account and transaction.
[/ux_text] [/tab] [tab title=”Yearly ROC Filings”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]The Private Limited Companies is obligatory to submit returns and accounts revealing the information of its directors and stakeholders to the Registrar of Companies.
A private limited company must submit Form AOC-4 (Financial statements) within one month (30 days) along with profit/loss account, Director Report, and Balance sheet.
It is compulsory to submit Form MGT-7 (Annual returns) within 2 months(60 days) of organizing AGM.
[/ux_text] [/tab] [tab title=”Income Tax Compliances”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]The company is needed to make quarterly payments of advance tax.
Income Tax Return Filing
Compulsory tax audit ( in the situation when gross revenue or turnover of a business surpasses 1 crore in the last year applicable to the assessment year.)
Tax Audit Report Filing
[/ux_text] [/tab] [tab title=”Directors Report”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]The company’s directors have to provide information about their ownership in other organizations every year( if they do). They can do it by giving a declaration in written format to the company annually.
[/ux_text] [/tab] [/tabgroup] [/col] [/row] [/section] [section label=”Simple Center” bg=”2784″ bg_color=”rgb(255, 255, 255)” padding=”60px” height=”300px” video_visibility=”visible”] [row h_align=”center”] [col span=”10″ span__sm=”12″ align=”center”] [ux_text text_color=”rgb(0,0,0)”]Board Meeting
[/ux_text] [/col] [/row] [row] [col span=”3″ span__sm=”6″ padding=”15px 15px 15px 15px” bg_color=”rgb(45, 47, 63)” border=”3px 3px 3px 3px”] [ux_text text_color=”rgb(255,255,255)”]Within one month of company registration, it is compulsory to organize the first meeting of the company’s Board of Directors.
[/ux_text] [gap height=”49px”] [/col] [col span=”3″ span__sm=”6″ padding=”15px 15px 15px 15px” bg_color=”rgb(45, 47, 63)” border=”3px 3px 3px 3px”] [ux_text text_color=”rgb(255,255,255)”]The company needs to conduct 4 board meetings every 3 months, and at least 2 Directors or one-third of the total number of the directors, whichever is bigger, need to be available in the meeting.
[/ux_text] [/col] [col span=”3″ span__sm=”6″ padding=”15px 15px 15px 15px” bg_color=”rgb(45, 47, 63)” border=”3px 3px 3px 3px”] [ux_text text_color=”rgb(255,255,255)”]Moreover, it is recommended to restore and draft meeting suggestions, discussions, and important points and preserve them at the company’s registered office.
[/ux_text] [gap height=”24px”] [/col] [col span=”3″ span__sm=”6″ padding=”15px 15px 15px 15px” bg_color=”rgb(45, 47, 63)” border=”3px 3px 3px 3px”] [ux_text text_color=”rgb(255,255,255)”]All members should get informed about the date, venue, and objective of the meeting at least before seven days.
[/ux_text] [gap height=”50px”] [/col] [/row] [/section] [section label=”Simple Center” bg_color=”rgb(7, 73, 97)” height=”200px”] [row h_align=”center”] [col span=”10″ span__sm=”12″ align=”center”] [ux_text text_color=”rgb(255,255,255)”]Other incident-related compliances
Apart from annual filings, the company has to accumulate compliances related to any occasion and event happening in the company.
[/ux_text] [/col] [/row] [/section] [section label=”Section with box left” bg_color=”rgb(228, 228, 228)” padding=”59px” height=”300px” border=”1px 0px 0px 0px” border_color=”rgb(235, 235, 235)”] [row style=”large” v_align=”middle” h_align=”center”] [col span=”7″ span__sm=”12″ align=”center”] [ux_text text_align=”left” text_color=”rgb(0,0,0)”]Here are some examples of such occasions
Providing loans to other organizations
Alteration of validated capital or paid-up capital of the firm
Issuance and transfer of new shares
Providing a loan to the Directors
Selection of managing or full-time Directors and their salaries
In case authorized signatories are changed in the company’s bank account or at the time of opening and closing of a bank account.
In case there is replacement and joining of the Company’s statuary auditors.
It is compulsory to submit essential applicable forms to the Registrar of Companies within a given time frame. Failing to submit these essential files may cause penalties and additional fees.
[/ux_text] [/col] [col span=”5″ span__sm=”12″ padding=”15px 15px 15px 15px” bg_color=”rgb(255, 255, 255)” depth=”2″ depth_hover=”5″] [ux_image id=”3945″] [/col] [/row] [/section] [section label=”Simple Light” bg_color=”rgb(245, 245, 245)” padding=”60px” height=”300px” border=”1px 0px 0px 0px” border_color=”rgb(235, 235, 235)”] [row] [col span=”5″ span__sm=”12″] [ux_text text_color=”rgb(0,0,0)”]In case of Non-compliance
Suppose a private limited company doesn’t fulfill prescribed compliances as per the Companies Act. In that case, the company gets penalized, and its director will be punished for violating rules.
The additional fees are needed to be paid if there is postpone annual filing. Therefore, it is always ideal to follow the compliances timely.
[/ux_text] [/col] [col span=”7″ span__sm=”12″] [ux_text text_color=”rgb(0,0,0)”]How CS Filing will help you Out in filing the Private Limited Company Compliances
When you have an expert with you, there is no point in worrying about completing the compliances. We at CS Filing understand the system, regulations, terms, and conditions of the company’s compliances. We have company registration professionals to guide you every time whenever you need
We make sure to file compliances on time and save you from unwanted penalties and punishment as per the company act.
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