Annual Compliance for private limited companiesHemlata Khandelwal / 2021-03-09 05:50:23
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.
Benefits of the compulsory compliance filing
Improve operational performance
High employee retention
Better information governance
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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 company is required to issue share certificates to the subscribers of the memorandum within 60 days of incorporation.
At the first board meeting, all directors are required to disclose their interest in another business unit.
This is to be done on the registration of the company. Form Inc. 20A essentially requires filing within 180 days from incorporation.
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.
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.
All statutory registrations like GST Registration, PF Registration, ESI Registration, IEC Registration, etc. should be done.