Annual Compliance for Private Limited Companies
Ensuring compliance is crucial for the smooth operation and legal standing of a Private Limited Company in India. At Accto, we specialize in helping businesses meet their compliance requirements efficiently and effectively. Here’s a detailed overview of the compliance process for Private Limited Companies, including the required documents, the step-by-step procedure, and how Accto can assist you.
Requirements for Private Limited Company
1. Annual Compliance
- Annual General Meeting (AGM): Every Private Limited Company must hold an AGM within six months from the end of the financial year.
- Annual Return Filing (Form MGT-7): oThis return contains details about the company’s shareholders, directors, and other relevant information.
- Financial Statements (Form AOC-4): Financial statements, including balance sheets and profit and loss accounts, must be filed with the Registrar of Companies (RoC).
2. Statutory Audit
- Companies must appoint an auditor within 30 days of incorporation. The auditor will examine the financial statements and provide an audit report.
3. Board Meetings
- A minimum of four board meetings should be held every year, with a gap of not more than 120 days between two consecutive meetings.
4. Income Tax Compliance
- Income Tax Return (ITR): The company must file its ITR by the specified due date.
- Tax Audits: Companies with a turnover exceeding the prescribed limit must undergo a tax audit.
5. Registrar of Companies (RoC) Filings
- Event-based Filings: Any significant changes in the company, such as changes in directors, capital, or registered office, must be reported to the RoC.
6. Other Compliances
- Director KYC: Directors must complete their KYC annually.
- DIN eKYC: Director Identification Number (DIN) holders must file their KYC with the Ministry of Corporate Affairs (MCA).
Required Documents for Compliance
To ensure compliance, the following documents are typically required:
- Certificate of Incorporation.
- Memorandum of Association (MoA) and Articles of Association (AoA).
- Minutes of Board Meetings and AGM.
- Audited Financial Statements.
- Director's Report.
- Share Certificates.
- Registers of Members and Directors.
- Income Tax Returns
- Tax Audit Report (if applicable)
- Proof of Registered Office
The Compliance Process: Step-by-Step
1. Preparation of Financial Statements
- Compile the financial data for the fiscal year, including the balance sheet, profit and loss statement, and cash flow statement.
2. Appointment of Auditor
- Appoint an auditor who will audit the financial statements and provide an audit report.
3. Conducting the Annual General Meeting (AGM)
- Hold the AGM within the stipulated time and ensure the necessary resolutions are passed..
4. Filing Annual Return and Financial Statements
- File Form MGT-7 (Annual Return) and Form AOC-4 (Financial Statements) with the RoC.
5. Board Meetings and Minutes
- Conduct at least four board meetings during the year and maintain proper minutes of the meetings.
6. Income Tax Compliance
- File the company’s ITR and ensure any applicable tax audits are conducted.
7. Event-based RoC Filings
- Report any significant changes in the company to the RoC through the appropriate forms.
8. Director KYC and DIN eKYC
- Ensure that all directors complete their KYC and file their DIN eKYC.
Non-Compliance & Penalties for Private Limited Company Annual Compliance
1. Non-Filing of Annual Return (Form MGT-7)
- - Due Date: Within 60 days from the conclusion of the Annual General Meeting (AGM).
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Penalty:
2. Non-Filing of Financial Statements (Form AOC-4)
- - Due Date: Within 30 days from the conclusion of the AGM.
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Penalty:
3. Non-Conduct of Annual General Meeting (AGM)
- - Due Date: Within six months from the end of the financial year.
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Penalty:
4. Non-Filing of DIR-3 KYC
- - Due Date: By 30th September of every financial year.
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Penalty:
5. Non-Filing of MSME Form I
- - Due Date: Half-yearly returns in April and October.
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Penalty:
6. Non-Filing of Income Tax Return
- - Due Date: 30th September of the assessment year.
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Penalty:
7. Non-Filing of Tax Audit Report
- - Due Date: 30th September of the assessment year.
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Penalty:
8. Non-Filing of GST Annual Return (Form GSTR-9)
- - Due Date: 31st December following the end of the financial year.
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Penalty:
9. Non-Compliance of Statutory Registers
- - Registers to be maintained: Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, etc.
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Penalty:
10. Non-Filing of Form DPT-3
- - Due Date: 30th June every year
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Penalty:
How Accto Helps with Compliance
At Accto, we understand that navigating compliance can be daunting. Our team of experts provides comprehensive support to ensure your company meets all legal requirements. Here’s how we assist:
- Expert Guidance: Our experienced professionals offer step-by-step guidance throughout the compliance process.
- Document Preparation: We help in the preparation and verification of all necessary documents.
- Timely Reminders: We provide timely reminders for important compliance deadlines to ensure you never miss a due date.
- Filing Assistance: Our team handles the filing of annual returns, financial statements, and other necessary documents with the RoC.
- Audit Support: We assist in appointing auditors and coordinating the audit process.
- Ongoing Support: Whether it’s for annual compliance or event-based filings, we offer continuous support to manage all your compliance needs.
Pricing Plans
Scale
₹ 14,999 /-
Inclusive of all Tax
- Dedicated account manager
- ADT 1
- DIN eKYC for (2 Directors)
- Accounting & Bookkeeping (Upto 300 Transaction / year)
- Preparation of Minutes & Filing of AGM Report
- Annual Compliance (Turnover up to 25 lakhs)
- Income Tax Filling (Turnover up to 25 lakhs)
- AOC 4 & MGT-7 Form Filing
FAQ on Private Limited Companies Compliance
Annual compliance ensures that a Private Limited Company adheres to regulatory requirements, maintains good standing with authorities, and avoids legal penalties or fines. It also enhances the company's credibility and trustworthiness among stakeholders.
Non-compliance with annual filing requirements can result in heavy penalties, including fines and legal action against the company and its directors. Persistent non-compliance may also lead to the company being marked as inactive or struck off from the register of companies.
A Private Limited Company must conduct its AGM within six months from the end of its financial year. For newly incorporated companies, the first AGM should be held within nine months from the end of the first financial year.
The annual return requires details such as the company’s registered office, principal business activities, particulars of its holding, subsidiary and associate companies, shareholding pattern, and the information of directors and shareholders.
A Private Limited Company is required to hold a minimum of four board meetings each year, with a maximum gap of 120 days between two consecutive meetings.
Form AOC-4 is used to file the financial statements of the company, including the balance sheet, profit and loss account, and director's report, with the Registrar of Companies (RoC).
A statutory audit is an examination of the financial records and statements of a company to ensure accuracy and compliance with regulatory standards. It must be conducted by a qualified Chartered Accountant who is appointed as the company's auditor.
Event-based compliances are filings required when specific changes occur in the company. Examples include changes in directors, alteration of the registered office, changes in capital structure, and transfer of shares.
Director KYC (Know Your Customer) is an annual compliance requirement where directors of a company submit their personal details and verification documents to the Ministry of Corporate Affairs. It helps maintain updated records and ensures transparency.
Accto offers comprehensive compliance management services, including document preparation, filing assistance, audit coordination, and timely reminders for compliance deadlines. Our expert team ensures that your company meets all regulatory requirements seamlessly.
DIN eKYC (Director Identification Number eKYC) is a mandatory annual filing where directors holding a DIN must submit their KYC details online. It ensures that the information of directors is accurate and up to date in the MCA database.
Yes, newly incorporated companies must appoint an auditor within 30 days of incorporation, hold the first board meeting within 30 days, and conduct their first AGM within nine months from the end of the first financial year. They must also file the necessary incorporation documents and initial returns.