What are the mandatory compliances for private limited company?
Nowadays,
private limited companies are one of the most sought after structures to
initiate business propaganda for an entity. It is a smart choice to have
maximum profits along with the benefits of limited liability and incorporated
entity along with perpetual succession and separate legal entity. But along
with these benefits, there are many Annual
Compliances for Pvt Ltd Company that a private firm is liable for.
This is
the point where your entrepreneurial skills come into the picture. It means how
you can manage everyday operations of the business along with managing all the Private
Limited Company Compliance. It is also suggested to take professional advice in
order to get the complete idea of all the compulsory annual compliances for the
smooth running of your business.
Here,
we will provide you complete details about all the compliances that are
mandatory for the Private organization. Before getting into that, let’s tell
you about the recent news wherein the Ministry Of Corporate Affairs has strike
off and outperformed almost around 2 Lakhs companies and more than 3 Lakhs
directors were disqualified due to non-compliance of various provisions led by
Company Act 2013. You must have understood by this that how important it is to
follow all the compliances in order to get saved from heavy penalties and
company closure.
List of Mandatory Private Limited
Company Compliance
Here is
the list of the entire mandatory compliances for a private company:
·
First
board meeting
It is
mandatory to have the first meeting of the board of directors within 30 days
from the date of the company’s incorporation. The meeting notice must be with
the directors at least before 7 days of the meeting date.
·
Subsequent
board meetings
Every
year at least 4 board meetings must be held and there should not be a gap of
more than 120 days between two meetings.
·
Filing
of disclosure of interest by directors
Every
director has to disclose all the changes in disclosures in Form MBP-1. It should also include the list of relatives in the
firm according to the RPT definition, body corporate, all the interests and
concerns in the company and the interest of shareholders. The Form MBP-1 should
always be there in the company’s record. In every financial year meeting of the
board members, the director should disclose this form.
·
First
auditor
The
board of directors should appoint the company’s first auditor within the first
30 days of the incorporation of the organization. The first auditor shall hold
the charge until the ending of the first AGM. In this case, it is not mandatory
to file the ADT-1.
·
Subsequent
auditor
In the
first AGM, the BOD will be appointing the auditor who will be held in charge
till the ending of the 6th AGM. This has to be informed to the ROC
by filing the ADT-1. Within 15 days
of the appointment of the auditor, the ADT-1 form has to be filed by the
company.
·
Annual
General Meeting (AGM)
It is
mandatory for every company to organize the AGM every year before 30th
September during business hours.
·
Annual
return filing through MGT-7
The
private company has to file the annual return within the timeline of 60 days
from the date of AGM. The annual returns are filed for the period from 1st
April of the previous year to 31st March of the current year.
·
Financial
statements filing through AOC-4
It is
mandatory to file the balance sheet by every private company along with the
complete statement of the profit and loss account and the report of the director.
This has to be filed within the 30 days of the completion of the Annual General
Meeting.
·
Statutory
audit of accounts
All the
accounts should be prepared by the company and have to get them audited at the
end of the financial year by the Chartered Accountant. The auditor is
responsible for providing the audit financial statement and the audit report
for filing it to the registrar.
If in
case a company fails to follow any compliances, the consequences can be serious
leading to a fine of high amount and even striking off of the company. So it is
the owner’s responsibility to follow all the Annual
Compliances for private limited Company and make sure the business goes on
smoothly.
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