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For Indian private limited firms, managing compliance can be a difficult task. While following the Companies Act 2013's extensive requirements—which include shareholder meetings, director appointments, and other regulatory obligations—is essential, it can sometimes appear burdensome.
Here's where Taxhint comes into play. We simplify the compliance process, from registration to ongoing requirements, by offering professional guidance and all-inclusive solutions customised to your company's needs. Our team of experts guarantees that your organisation satisfies company compliance needs because they possess extensive understanding of Indian business rules and regulations. TaxHint is your partner in streamlining compliance, regardless of your company's size.
Let's make Company compliance hassle-free together! Get Started now!
Compliance refers to adhering to orders, rules, or requests. For a private limited company incorporated in India, Compliance with the Companies Act 2013, which includes obligations to the Registrar of Companies (RoC), is essential for private limited companies in India. This legislation governs various aspects, including the appointment, qualification, remuneration, and retirement of directors and the conduct of board and shareholder meetings. Compliance with Registrar of Companies (RoC) regulations is mandatory for every private limited company, regardless of turnover or capital amount.
As previously stated, a company is required to fulfil these tasks in compliance with the rules established by the Registrar of Companies (ROC) or a comparable authority. They usually include complying with the Companies Act's requirements and filing statutory reports.
Ensuring adherence to ROC compliance is pivotal for companies operating in India. ROC Compliance for Private limited company can be broadly classified into:
Annual compliances are a critical aspect of corporate governance for companies registered in India. Key annual compliances include:
Obtaining a Commencement of Business Certificate is a requirement for firms that were registered in India after November 2019 and have share capital before they can begin operating or borrowing money. Within 180 days of incorporation, this certificate must be obtained by submitting Form INC-20A.
It is crucial to quickly comply with this regulatory obligation because failure to obtain this certificate carries penalties. The company faces a fine of Rs. 50,000 and directors are charged Rs. 1,000 per day for each non-compliance.
During the first Annual General Meeting (AGM), the shareholders must approve the appointment of the first auditor within 30 days of the company's incorporation. Within fifteen days of the AGM, the Registrar of Companies (ROC) must receive Form ADT-1, which confirms the auditor's appointment.
Within thirty days after formation, there should be the first board meeting. Consequently, businesses are required to have a minimum of four board meetings annually, with a maximum of 120 days separating sessions.
Nine months after the first financial year's end, the first AGM shall take place. The AGM will now have to be convened annually, no later than six months after the fiscal year ends, so as to minimise the maximum of fifteen months that will elapse between AGMs.
AGMs are called in order to approve financial statements, declare dividends, appoint or re-appoint auditors, commission, pay directors, and other matters.
The meeting is scheduled during a non-holiday business hour on a non-public day. It will take place at the registered office of the firm or in the town, village, or city where the registered office is located.
The registrar of private limited corporations receives annual accounts and returns from these entities, which include information about their directors, shareholders, and other stakeholders.
As a part of the annual compliance for private limited company, the following forms are to be filed with the ROC:
The company's financial statements must be filed on this form, which must be done no later than 30 days after the annual general meeting (AGM).
The annual general meeting must be filed with Form MGT-7 (Annual returns) within sixty days.
This document must be submitted within 30 days of any changes to the company's directorship, including appointments and resignations.
Directors must turn in their KYC information by September 30th of each year using Form DIR-3, providing that their Director Identification Number (DIN) has been assigned by March 31st of that year and is listed as "Approved." There is a Rs. 5000 penalty for not filing DIN eKYC.
By June 30th of each year, businesses must utilise this form to record specifics of deposits and other non-deposit receipts.
A condensed version that includes all the data needed by small businesses in accordance with Section 134 needs to be created. At least two directors or the Chairperson should approve it.
Books of accounts, financial statements, board meeting and AGM minutes, files with the ROC, and other statutory registers and documents are among the many that companies are required to keep up to date on a regular basis.
Companies are required to provide all members with approved financial statements and reports from the directors and auditors at least 21 days before to the annual general meeting (AGM).
For ready reference, below is a table summarizing the annual compliances for private limited company and their respective due dates:
| Annual compliances for Private Limited Company | Due Date |
|---|---|
| Commencement of Business Certificate (COB) | Within 180 days of incorporation |
| Appointment of Auditor and Filing E-form ADT-1 | Within 15 days of the AGM |
| Holding Board Meetings | As per the schedule of board meetings |
| Conducting the Annual General Meeting (AGM) | Within 9 months from financial year-end |
| INC-20A: Declaration for Commencement of Business | Within 180 days of incorporation |
| AOC-4: Filing of Financial Statements | Within 30 days of the AGM |
| MGT-7A: Annual Returns for Small Companies/OPCs | Within 60 days of the AGM |
| DIR-12: Appointment/Resignation of Directors | Within 30 days of appointment/resignation |
| DIR-3 KYC: Director KYC Submission | By September 30th each year |
| MGT-14: Filing of Board Resolutions | Within 30 days of passing the resolution |
| DPT-3: Return of Deposits | By June 30th each year |
| Directors’ Report | At least 21 days before the AGM |
| Maintenance of Statutory Registers and Books of Accounts | Throughout the financial year |
| Circulation of Financial Statements and Other Relevant Documents | At least 21 days before the AGM |
Besides the annual filings, there are various other compliances that need to be compiled with on occurrence of any event in the company.
Here are specific instances of such events:
For each of these occasions, separate forms must be submitted to the registrar within a given time frame. If this is overlooked, there may be further charges or penalties. Therefore, it is essential to fulfil these compliances on schedule.
Although they are necessary for legitimate business operations, these regulatory requirements do not directly affect the ROC. Depending on the kind of business, how big it is, and what industry it works in, they could be subject to different laws and regulatory agencies. Among them are:
Penalties may be imposed on the company and its defaulting members for failure to comply with the provisions of the Companies Act in India. Usually, penalties consist of fines that are applied for the length of the non-compliance. Furthermore, late submissions of yearly reports may result in further charges. Consequently, in order to avoid fines and other financial consequences, businesses should execute their compliance requirements as soon as possible.
Entrepreneurs can easily fulfill their company compliance obligations by working with Taxhint Advisors. Here's how we can support you:
We provide access to the compliance platform called LEDGERS, which is designed to make compliance tasks easier. This tool allows business owners to effectively manage their compliance requirements, monitor due dates, produce reports, and more.
A dedicated Compliance Manager will be assigned to your business, serving as a single point of contact to assist you in keeping your business compliant. You can seek help on any topic related to your company's compliance by contacting your compliance manager at any time.
At the conclusion of each fiscal year, all businesses must keep records and prepare financial statements. At the end of the fiscal year, our Compliance Manager will assist your firm with account maintenance and compile your business's financial statement.
Every fiscal year, companies must hold a minimum of four board meetings, an annual general meeting, a directors' report, and an annual report. You will receive assistance from our Compliance Manager in creating all secretarial reports and preparing board meeting minutes.
A company's annual general meeting must be held within six months of the end of the fiscal year. The MCA annual return must also be submitted by September 30th at the latest. Your company's MCA annual return will be prepared and filed by our Compliance Manager.
Regardless of revenue, profit, or loss, a firm is required to file an income tax return. Therefore, every year, even inactive businesses with no transactions must file an income tax return. The income tax return for your business will be prepared and filed by our Compliance Manager.
Ready to streamline compliance effortlessly? Let Taxhint Advisors be your trusted partner. Get started today and experience hassle-free compliance management.