Annual Compliance for Private Limited Company

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GST Return Filing

Private LTD Company for Annual Compliances

Private Limited Company are the basic rules for the organization or companies that had registered under Private Limited entity.

Starting any business is a dream for every person, but they don't have knowledge about the many things related to business, they also don't have a good understanding about any terms and any conditions because of that they do not file any compliance. And after that, they need to pay the penalties and because of that many people close their business. So it is very important to get all knowledge about the annual filing and also the procedure of filing. All companies have to mandatory file the procedural of compliance.

Why is Annual Compliance Important?


There are various types of compliances and each varies from each other. For Instance, The company's laws such as the Companies Act 2013, Income Tax Act 1961, GST Act 2017, SEBI Act to check company listed entities. Organizations have to follow a lot of rules.

A company must file its income tax return every financial year along with other mandatory compliances like Advance Tax, Professional Tax, TDS, etc. Additionally, when the annual turnover of a company is above the limit of INR 1 Cr, the company is mandatorily required to file its Tax Audit every financial year. Further, where a company is involved in the manufacture of goods or provision of services recognized under the GST Act 2017 and crosses the limit of 40lakhs in its annual turnover, it must submit GST monthly, quarterly and annual return.

Documents Required to file the Annual Compialances

Sale of Goods

Incorporation Documents

PAN Card, Certification of MOA-AOA of a private & public company.

Purchase of Goods

Audited Financial Statements

Audited by the independent auditor

Sale of Goods

Audit Report & Board Report

Provided by the independent auditor.

Purchase of Goods

DSC of Directors

It contains the Valid and Active DSC of the director must be provided.

Filing Process of Annual Compliances

1

Basic information

Collection of the basic information and provide the requirements document.

2

Due Date of ROC

Decide the due date of ROC filing for the Pvt. Ltd Company.

3

Drafting

Drafting the necessary documents of the company with attachments of the supporting documents.

4

AOC Filing

Filing of AOC-4 along with the MGT -7 the financial statement and the annual returns.

5

Due Dates of Compliance

Due Dates of Compliance for Private Limited Company that are:-

AOC - 4 within 30 days from the date of AGM (Annual General Meeting) for Financial Statements.

MGT - 7 within 60 days from the date of AGM (Annual General Meeting) Annual Return.

Benefits of Annual Compliance in India

  • Increasing the Credibility Compliance

    Increasing the Credibility compliance of law is the first goal of any company. Every corporation will arrange its Accounts and get the equivalent reviewed by a Chartered Accountant toward the end of the fiscal year compulsorily. It shall be the duty of the auditor to provide an audit report of the evaluated financial statements providing his remarks and later to submit it with the concerned Registrar of the jurisdiction

  • No Compialance Related Issue

    The regularity of the compliances filing shows your company running well and there is no compliances related issue with your company.

  • Attract Investors

    It also helps to attract the investor toward your company, Because the investors also find the companies that are filing their annual compliances regularly and maintaining their record annually. The investors evaluate the companies by their financial records.

  • Record Maintainace

    The filing and maintaining all records helps organizations to avoid the heavy penalties, This also helps to scale up your company and improve the reputation of your company.

  • Primary Categories

    There are two primary categories when the company come under the corporate laws that are:-
    A. Public Company
    B. Private Company
    Public Company : The public company comes under section 2 (71) of the companies act, 2013. A public company is a company that offers shares to the general public and has limited liability. The public company must have to publish the true financial status for the shareholders.
    Private Company : This company came in under section 2(68) of the companies act, 2013. The private company is not allowing the public to subscribe to the shares in a large amount.

Types of Annual Compliance in India

Board Meetings and Annual General Meeting

In case the Company fails to fulfill its annual and event compliances, the MCA may initiate legal proceedings against the company resulting in dissolution ultimately. For example, if a company has not filed its Annual Return for the last two financial years continuously, then such companies would be termed as an inactive company and its bank account of the company could be frozen..

GST Returns and Income Tax

GST returns are the tax return forms that are required to be filed up these entities with the Income Tax authorities of India. All individuals registered under the GST Act has to furnish the details of the sales and purchases of goods and services along with the tax collected and paid. This can be done by filing online returns. GST Return are the Goods and Services Tax Return forms that taxpayers of all types have to file with the income tax authorities of India under the new GST rules.

Financial Statements And Annual Returns

It is mandatory for a Private Limited Company to file the Financial Statements and Annual Returns every year. The Annual Return must be fulfilled with the information about the companies shareholders, Members, and directors, etc. And it must be filed within 60 days of holding the Annual meeting.

The Financial statement contains the different documents related to the finance of the organization and also it contains the balance sheet, Statements of profit and losses, and report of the director and this report must be the file within 30 days of holding the Annual Meeting.

Audit Report

Every Company needs to provide the financial report to charted accountants and reviewed them at the end of the financial year. It is the job of the auditor to provide the audit report for evaluating the financial statements. This Audit report is very important to review by the accountant, it contains all report about the company inspection.

Register and Records Maintenance

Every company must have to maintain all records in its registered office, This Register and Records contain the Register of shares, Register of directors, Register of Members. The General meeting agendas are also recorded in the registered office of the company, It also Records the minutes of the General Meeting and the annual board meeting.

Auditor Appointment

Every company registered under the Indian Companies Act, 2013 that companies need to take their first Annual General Meeting (AGM) in this meeting then must have to appoint an auditor. According to the Act, 2013 section 139, it is mandatory for every company to appoint the auditor by the board of directors within 30 days of incorporation. when such an auditor is appointed his appointments need to info the Registrar of the company within the 30 days of the company from the date of Meeting.

Event-based Compliances

Additionally, in case of an annual or period event, the company must have the proper documents and resolutions to submit with the ROC to inform it about the changes. Any illegal or willful negligence in the disclosure of accurate information about such changes or business events can result in penal action against the company as well as the directors.

Event-based Compliances of PVT

    It will file when your company provides the schemes for the other companies.

    If a company provides schemes to directors of the company, it needs to file the information in the registrar's office.

    Some change is happening in the companies capital.

    If the company allotted new shares or transfer the shares.

    Opening and closing the bank account of the company and also change the signatories of the bank account.

    Change the Statutory Auditors or appointments.

Some Other Compliances in the case of Public Company


If the company deposits any return the company should have a file this information in the registrar.

Appointment of KMP (Key Managerial Personnel).

Appointment of KMP (Key Managerial Personnel).

Cost Auditor Appointment.

Disclosure of Directors.

Some Related Penalties for Directors

    If the company failed to submit the Annual Report for three continuous financial years, Then the persons who are currently directors of the company are disqualified under the Companies Act 2013. If the company fails to file the annual return by the date of 30 September then the company forced to file this fee 9-12 times the fee.

    If the company fails to audit the report on time then the company must have to submit the amount equal to either 0.5% of their turnover and the max limit for this is 1.5 lakh.

    If the company fails to maintain the important registers and records then the company should have to submit a 1000rs per day penalty if this not filing continuously this will also extend up to 3 lakh.

    These are some event-based compliances for every private and public company. Every company must have to file this event-based compliance, If any company not filing this event- based compliance then this company will be penalized and also go under investigation that is not good for any private or public company.

FAQ's

The compliances that are made for the Private Limited Company are divided into two parts and that is:-
  • Mandatory Compliances.
  • Event-Based Compliances.
Mandatory Compliances:-
  • Company Name Board:- Each and every company should paint its or affix its name and address of their company and keep it outside each and every office of its company.
  • First Board Meeting:- The First Board meeting of the company should be held within 30 days of the incorporation of the Private Limited Company.
  • Letter Head of Company:- Every company should print its name, a company registered office address, CIN, telephone, and email on all of its letter papers, business letters, and billheads.
  • Subsequent Board Meetings:- The company should complete a minimum of 4 meetings within a year having a gap of 120 days between each meeting. In the case of small companies, it is sufficient to have only two meetings.
  • Issuing of Share Certificate:- The organization or the company should issue the Share Certificate to the subscribers of the Memorandum within 60 days of the company incorporation.
  • Alteration in MOA and AOA:- Every alteration done in the Memorandum or the articles should be filed with the registrar together with the copy of the altered articles within 30 days of passing the Special Resolution. Each and Every alteration was done in the MOA and the AOA should be noted in every copy thereafter.
  • Resident Director:- At least one Director of the given organization who should have stayed in India for more than 182 days should be appointed as a Resident Director.
  • Registers:- Each and every organization should keep and maintain the registers as per the format that is specified below:-
    1. Register of Members MGT-1 and then Register of other Security Holders residing outside India MGT-3.
    2. Register of SH-6 ( Transfer and Transmission of Shares).
    3. Register of Charge CHS-7 and the Index of the Registers.
A Private Limited Company is an entity or a type of company that has to pay the annual financial statements. Each Company has to mandatorily pay the annual financial statements. Running a Private Limited Company needs to follow a set of compliance that are made by the Government for the companies as well as other organizations that are mandatory for all organizations.
No, only the invoice needs to be uploaded as per the information asked / required.
There are a lot of benefits for the Private Limited Company and that are mentioned below:-

  • Share Transfer Ability
  • Build trust & brand loyalty
  • Better visibility of operations
  • Avoid any legal implications.
  • Maintain credibility in the market
Yes, It is mandatory for all the organization and even the Private Limited Companies to file the Annual Compliance as it is regulated by the Government of India.
Its mandatory for all public limited companies to file annual compliance and other tax-related returns. Failing which will lead to heavy penalties or your Company in Defaulter list of ROC Next step is to understand various implications.
The abbreviated form of ROC is Registrar of Company which is an office that is under the Indian Ministry of corporate affairs. This is an essential form that should be carried out quarterly, half- yearly, or yearly.
The abbreviated form of MCA is the Ministry of Corporate affairs which looks at compliance requirements for the Private Limited Company.
The list of the documents that are essential for the Annual Filing is mentioned below:-
  • PAN Card or Incorporation Certification of the Private Limited Company or MOA and AOA of the Private Limited Company.
  • Audited Financial Statements of the given Private Limited Company.
  • Audit Report and Board Report of the company.
  • DSC of the Director of the organization.
Form ADT-1 is a mandatory requirement for the appointment or removal of the statutory auditor.
Yes, all the companies and organizations have to file annual compliance with the Ministry of Corporate affairs every year.
Annual Compliance can be said as a set of rules that are made by the Government for companies or organizations such as One Person Company, Private Limited Company, etc.
Limited companies can be private or public. Unlike a publicly limited company, where shares are traded on the stock exchange, a private limited company does not publicly trade shares and is limited to a maximum of 50 shareholders.

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