Mandatory Compliances for a Private Limited Company in India

The obligatory provisions that are meant to be adhered to on an annual basis of the private limited company compliances comprise of the following:

     ●     Auditor Appointment
●     BOD (Board of Directors’) Meeting
●     Annual General Meeting (AGM)
●     Annual Return and Budgetary Statements
●     Maintenance of Company’s Registers and Records
●     Company’s Income Tax Return

 Right from the time of its establishment, a start-up becomes submissive to the contrary statutory and regulative governing compliances. A business registered in India is asked to abide by the several annual statutory compliances laid down by the corporate body of laws like the Companies Act, 2013. Since a large number of start-ups are put on record as corporations, annual compliances of a private limited company become the most faced subject by growing businesses.

 Businesses are often ineffectual to keep a track of their annual compliance requirements and fall under the scrutiny of the MCA, i.e., the Ministry of Corporate Affairs. This not only causes or generates innumerable restraints for the business in the form of heavy fines but also reduces the prospect of the start-up’s continuance in case of multiple infringements.

 According to the statement report made by the MCA, more than 2 lakh companies were struck off from the MCA’s database, and more than 3.5 lakh directors were barred due to non-compliances with Annual ROC returns of the company. To put a stop to the same from occurring to a new business, it is significant to be aware of the different annual compliance requirements of a private limited company that must be filed with the Registrar of Companies in India.
 

Annual Compliances for a Private Limited Company:

 The annual compliances of a private limited company are characterized as mandatory compliances and event-based compliances that must be filed with the ROC in the prescribed format, along with the authorized fees and before the targeted date and time set by the MCA.

 Mandatory Annual Compliances for a Company:

 When it comes to required annual compliances for a private limited company, there are certain pre-decided annual ROC returns that must be filed by a company every accounting year. Adding more to these obligatory annual compliance requirements, the MCA may include new mandatory compliances, and a business needs to stay updated to comprehend more about the latest MCA alerts for compulsory KYC or other form filings.

 What does a good compliance consultant do along with complying with the mandatory annual requirements?
 

A good compliance counselor in India can provide assistance to the start-up in comprehending whether the different annual compliances, be it the mandatory or event-based compliances, are applicable over the business or not. The mandatory annual compliances requirements of a private limited company involve the following:
 

●     Auditor Appointment
Every company that is registered under the Indian Companies Act, 2013 obliges to conduct its first Annual General Meeting and appoint its auditor. Within 30 days of business incorporation, an auditor must be necessarily appointed by the Board of Directors under the stipulations of Section 139 of the Act.

 ●     BOD Meeting
A BOD meeting must be head by the private limited company’s BOD within 30 days of its business incorporation. After the first BOD meeting, the Board must meet at least four times in an accounting year, with a gap of a maximum of 120 days or a quarter between two meetings.

 ●     AGM
The shareholders of a private limited company must meet once every year within 6 months from the date of closing of the fiscal year. It is required to be held at the company’s registered office or at some other place within the city/town/village in which the company’s registered office is located.

 ●     Annual Return and Financial Statements
The Annual Return and Financial Statements of the private limited company must be filed every financial year mandatorily by every registered company irrespective of its turnover or activities.

 ●     Maintenance of Company’s Registers and Records
The registers and records of a company must be carefully maintained and kept open for inspection at the company’s registered office. The registers and records of a company include the register of shares, register of members, and register of directors, resolutions of the meetings of the BOD, minutes of the BOD, and AGM.

 ●     ITR of company
A company must file its IT return every Accounting year, along with the other tax compliances relating to Advance Tax, Professional Tax, TDS, etc. The requirements and due dates of all the tax compliances of a company are different, and the business can interact with a compliance consultant in India for the timely management of these compliance requirements.

 Neusource offers various compliance packages for a private limitedcompany.