Annual Compliance for private limited companies
Hemlata Khandelwal / 2021-03-09 05:50:23How useful is the annual compliance package for a company?
All private limited companies are governed by the MCA under the Companies Act, 2013. Each company, post-incorporation, has to fulfill some of its mandatory legal obligations. It is very useful to you to take the package as per your requirements for your company’s annual compliance. You will get all the benefits related to compliance.
Annual compliance for private limited companies -
All private limited companies in India are regulated by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. According to this Act, every company, post-incorporation, has to fulfill certain, mandatory legal obligations. Compliance (rules compliance) requirements are complicated due to falling on different due dates and failing to meet them on time may affect the company.
This can include heavy fines (up to Rs 1 lakh per year) or blacklisting companies and their directors for short periods.
You should maintain a public record containing company information called the annual return of the company, which will be available in the Company Registration in India. Every year, you should regularly update the Annual Compliance for companies.
-
Benefits of the compulsory compliance filing
-
Improve operational performance
-
High employee retention
-
Better information governance
-
Spinach best practice
-
All you need to know
-
Enter Your Email ID *
-
Mobile number*
Also Read all about- LLP annual compliances
Filing Annual Compliance - A Detailed Process
The following are mandatory compliance that private limited companies have to fulfill. Our expert chartered accountants, accounting, and tax professionals will take care of all compliance requirements. We provide the best-in-class legal consulting for your company. Our team will cover compliance requirements mandated by the Ministry of Corporate Affairs
The following are mandatory compliance that private limited companies have to fulfill. Our expert chartered accountants, accounting, and tax professionals will take care of all compliance requirements. We provide the best-in-class legal consulting for your company. Our team will cover compliance requirements mandated by the Ministry of Corporate Affairs
1- Facility of the meeting of the board of directors:
The first meeting is held within 30 days of incorporating a business followed by four meetings each quarter in a calendar year. There should be no difference of more than 120 days between two consecutive meetings.
2- Preparation of minutes of the proceedings of the meeting:
Each company is required to record its minutes of the meeting and it will be permanently protected to add value in case of any dispute. The minutes of the meeting will be kept in the registered office.
3- Issue of share certificate:
The company is required to issue share certificates to the subscribers of the memorandum within 60 days of incorporation.
The company is required to issue share certificates to the subscribers of the memorandum within 60 days of incorporation.
4- Filing of disclosure of director's interest and declaration of disqualification:
At the first board meeting, all directors are required to disclose their interest in another business unit.
At the first board meeting, all directors are required to disclose their interest in another business unit.
5- Announcing the commencement of business with RoC:
This is to be done on the registration of the company. Form Inc. 20A essentially requires filing within 180 days from incorporation.
This is to be done on the registration of the company. Form Inc. 20A essentially requires filing within 180 days from incorporation.
6- Annual general meeting facilities:
A company will conduct at least one AGM each year. The first annual general meeting will be held within nine months from the conclusion of the company's first financial year. In other cases, it will be within six months from the conclusion of the financial year.
For example: If a company is incorporated on or before 31 December 2020, the first annual general meeting should be held within 9 months from the date of closing of the 1st financial year (31.12.2020 - 31.03.2021), Meaning 31st December to 2021.
A company will conduct at least one AGM each year. The first annual general meeting will be held within nine months from the conclusion of the company's first financial year. In other cases, it will be within six months from the conclusion of the financial year.
For example: If a company is incorporated on or before 31 December 2020, the first annual general meeting should be held within 9 months from the date of closing of the 1st financial year (31.12.2020 - 31.03.2021), Meaning 31st December to 2021.
If a company is incorporated on or after 1 January 2020, the first annual general meeting will be held within 15 months.
7- Annual Return Companies are required to e-file with the ROC within 60 days of the conclusion of the AGM.
8- Quarterly compliance:
Each company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.
Each company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.
9- Statutory Registration:
All statutory registrations like GST Registration, PF Registration, ESI Registration, IEC Registration, etc. should be done.
All statutory registrations like GST Registration, PF Registration, ESI Registration, IEC Registration, etc. should be done.
