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At Taxhint Advisors We Offer's Annual Compliance Filling

We provide expert consultancy for company registration, GST, ITR filing, and FSSAI certifications, ensuring seamless legal compliance.

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Annual Compliance for Businesses in India

Annual compliance is crucial for maintaining the legal status of a business, ensuring transparency, and avoiding penalties. This guide covers compliance requirements for Private Limited Companies (Pvt Ltd) and Limited Liability Partnerships (LLP) in India, penalties, costs, and best service providers.

Annual Compliance Requirements for a Private Limited Company

  • INC-20A: Commencement of Business Declaration

    • Requirement: Companies incorporated post-November 2019 must secure a “Commencement of Business Certificate” within 180 days of incorporation.
    • Penalties: Rs. 50,000 fine for the company, and Rs. 1,000/day for directors if not filed.

  • Appointment of Auditor & Filing ADT-1

    • Requirement: Appoint the first auditor within 30 days of incorporation. After the AGM, file Form ADT-1 with the ROC within 15 days.

  • Board Meetings

    • Requirement: The first board meeting must be held within 30 days of incorporation. Subsequent meetings must be held at least once every 120 days (4 meetings annually).
    • Notice: A seven-day advance notice is required for board meetings.

  • Annual General Meeting (AGM)

    • Requirement: The first AGM must be held within nine months after the first financial year. Future AGMs should be held within six months after the financial year ends, with a maximum gap of 15 months between AGMs.
    • Purpose: Approval of financials, dividend declaration, auditor appointments, and director remuneration.

  • Annual ROC Filings
    Companies must submit the following to the ROC annually:

    • AOC-4: File financial statements within 30 days after the AGM.
    • MGT-7: File annual returns within 60 days after the AGM.
    • DIR-12: Notify the ROC about director appointments/resignations within 30 days.
    • DIR-3 KYC: Directors must submit their KYC details by September 30th each year. A penalty of Rs. 5,000 applies if not filed.
    • DPT-3: Report deposits and non-deposit receipts by June 30th.

  • Directors’ Report

    • Requirement: Prepare an abridged director’s report for small companies under Section 134, signed by the Chairperson or at least two directors.

  • Maintenance of Statutory Registers & Books

    • Requirement: Keep updated records of board meeting minutes, AGM minutes, books of accounts, and files with the ROC.

How to File Annual Compliance for LLP in India?

Limited Liability Partnerships (LLPs) are regulated under the LLP Act, 2008. The key annual compliance filings include:

Annual Return (Form 11):

Due date: 30th May each year.

Contains details of partners and contributions.

Financial Statements (Form 8):

Due date: 30th October.

Includes a statement of accounts and solvency.

Income Tax Return (ITR-5):

Due date: 31st July (if audit not required) or 30th September (if audit required).

DIN KYC (DIR-3 KYC):

Mandatory for all designated partners.

GST & TDS Filings:

Applicable if the LLP has GST registration or deducts TDS.

Step-by-Step Guide to Filing Annual Compliance

For Private Limited Companies:

Prepare Financial Statements (Profit & Loss, Balance Sheet, Cash Flow).

Conduct Board Meeting & Approve Financials.

Hold the AGM before 30th September.

File AOC-4 & MGT-7 on the MCA Portal.

File ITR-6 with the Income Tax Department.

Complete GST and TDS Filings.

Maintain Compliance Records.

For LLPs:

Prepare a Statement of Accounts.

File Form 8 before 30th October.

File Form 11 before 30th May.

File ITR-5 by the due date.

Ensure GST/TDS compliance.

Importance of Annual Compliance for Businesses

  • Legal Status: Ensures the company/LLP remains active.

  • Avoids Penalties: Late filings attract heavy fines.

  • Credibility & Transparency: Helps in obtaining loans and investor funding.

  • Prevents Legal Action: Non-compliance may lead to director disqualification.

  • Maintains Good Standing: Essential for tenders, partnerships, and compliance checks

Event-Based Compliances for Private Limited Company

  • Changes in Directors or Key Management

    • Form DIR-12: Notify the ROC about any changes in directors (appointment, resignation, or reappointment) within 30 days.

  • Shareholder Meetings and Resolutions

    • Filing Resolutions: If there are resolutions passed in general meetings or board meetings, certain resolutions need to be filed with the ROC (e.g., special resolutions via Form MGT-14).

  • Issue of Shares or Changes in Share Capital

    • Form PAS-3: File with ROC when the company issues new shares, whether for cash or as a conversion of loans, and when there are changes in the share capital structure.

  • Changes in Registered Office

    • Form INC-22: File this form within 30 days if there’s any change in the registered office address of the company.

  • Borrowings or Acceptance of Deposits

    • Form DPT-3: Report details of deposits or loans accepted by the company, to be filed annually or whenever changes occur.

  • Financial Year-End Changes

    • If the financial year-end is altered, you need to inform the ROC by filing Form MGT-14.

  • Filing for Annual Financial Statements

    • AOC-4: File financial statements with ROC within 30 days of the AGM.

  • KYC of Directors

    • DIR-3 KYC: Submit annual KYC details for directors by September 30th, if they have an active Director Identification Number (DIN).

  • Change in Ownership or Control

    • Any change in the ownership structure (such as the transfer of shares) may require filing forms with the ROC, including share transfer details.

  • Director’s Report Filing

    • Filing with ROC: Directors are required to file their report with ROC, especially for certain types of companies, including small ones.

Non-Registrar compliance

  • Tax Payments: Regular payment of GST, TDS, TCS, Advance Tax, and Professional Tax (PTax).
  • Periodic Filings: Filing GST, TDS, Income Tax returns, PF and ESIC returns, and tax audit reports.
  • Regulatory Compliance: Adhering to laws such as the Environment Protection Act, Competition Act, and Factory Act, depending on the business type.

Why choose us ?

  • Expertise: Our team has deep knowledge and experience in handling regulatory compliances, tax filings, and business operations.
  • Timely and Accurate: We ensure that all filings are done promptly, avoiding penalties and ensuring smooth business operations.
  • Tailored Solutions: We offer customized solutions based on your industry and business needs, ensuring compliance with all relevant laws.
  • Trusted Partner: With a track record of satisfied clients, we are a trusted partner in managing your business’s legal and regulatory requirements.
  • Affordable Services: We offer competitive pricing while maintaining the highest standards of service quality.

FAQ Annual Compliance

Annual compliance refers to the set of legal and regulatory filings that a business must complete each year to remain in good standing with government authorities. This includes submitting financial statements, tax returns, and ensuring proper corporate governance.

Annual compliance helps your business stay legally protected, avoid penalties, maintain credibility with investors, and ensure transparency with regulatory bodies.

The key documents typically include financial statements (balance sheet, profit & loss), tax returns, director’s report, and forms related to shareholders, directors, and other regulatory filings.

Missing deadlines can result in fines, penalties, or the risk of your company’s status being struck off. Timely filings ensure your company stays in good legal standing.

Yes, private limited companies are required to file annual returns (Form MGT-7) every year within 60 days of the Annual General Meeting (AGM).

Annual compliance refers to the mandatory filings and regulatory requirements a company must fulfill every financial year, including tax returns, financial statements, and ROC filings.

Private limited companies, LLPs, sole proprietorships, partnerships, and public limited companies must file annual compliance as per the Companies Act, 2013.

Key requirements include ROC filing (AOC-4, MGT-7), GST returns, IT returns, TDS compliance, and financial statement preparation.

LLPs must file Form 8 (Statement of Accounts & Solvency) and Form 11 (Annual Return) with the MCA, along with income tax return filings.

Failure to comply can lead to penalties, fines, late fees, disqualification of directors, and even company strike-off by the ROC.

Yes, companies can file annual compliance online through the MCA portal, GST portal, and income tax website.

The cost varies based on company type, filing requirements, and professional fees. For small businesses, it can start from ₹5,000–₹15,000 annually.

Yes, even startups and small businesses must comply with regulatory requirements to avoid legal issues and maintain good standing.

You can hire CA firms, company secretaries, or online compliance service providers for hassle-free compliance filing.

Welcome To Taxhint Advisors Private Limited

  • +91-9311795484
  • Info@taxhint.in
  • NIT 5E-1, First Floor kotak Mahindra Bank, Neelam Chowk, Faridabad, Haryana(121001)

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