Annual Compliances for Private Limited Company
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Expertise in Public Limited Company
Step 1
DIN & DSC for Directors and Name Approval
Step 2
Filing Application for Registration with the Ministry of Corporate Affairs ( MCA)
Step 3
Obtain Certificate of Incorporation for your Company
- OverviewOverview
- BenefitsBenefits
- Documents RequiredDocuments Required
- Registration ProcedureRegistration Procedure
- FAQFAQ
What is the Annual Compliance for Private Company?
A Private Company is an entity enjoying a separate identity which requires maintaining its active status through the regular filing with MCA. For every company, it is compulsory to file an annual return and audited financial statements with MCA for every financial year. The RoC filing is mandatory irrespective of the turnover, whether it is zero or in crore. Whether a single transaction is undertaken or none, annual compliances for private limited are mandatory for every registered company.
Both the forms are filed to report the activities and financial date for concerned Financial Year. The due dates for annual filing of a company are based on the date of the Annual General Meeting. The continuous failure may lead to the removal of the company’s name from RoC’s register, including disqualification of directors. Also, it has been observed that MCA has actively taken bold steps for dealing with any such failures.
BENEFITS
Benefits of Annual Compliance
Raising Company’s Credibility
Compliance of law is the primary requirement for any business. The date of the company’s annual return filing displayed on the Master Data on MCA portal. Government tenders, loan approval or for similar other purposes, the regularity in compliance is a major criterion to measure the credibility of an organization.
Attract Investors
While pulling funds for a company from the investors, the investors demand all financial records and date before finalizing the proposal. The investors may either approach the company directly or can also check the financial records from the MCA portal. Investors also tend to favour the companies with regular compliance records.
Maintain Active Status and avoid penalties
Continuous failure in filing the return turns the company status to default and charges it with heavy penalties. The company may also be declared as defunct or removed from the RoC. The concerned directors are also disqualified and debarred from their further appointment. Since July 2018, an additional fee of ₹100 for each day of delay will be levied till the date of filing.
DOCUMENTS CHECKLIST
Documents required for Annual Filing of company
Incorporation Document
PAN Card, Certificate of Incorporation and MoA – AoA of Private Company
Audited Financial Statements
Financial Statements must be audited by independent auditor
Audit Report & Board Report
Independent auditor’s report and Board report must be provided
DSC of Director
Valid and active DSC of one of the directors must be provided
Fulfil compliance in 3 Easy Steps
Process of Annual filing of company
Explore Annual Compliance for Private Limited Company
Yes, RoC compliance for Private Limited Companies are necessary for every registered company. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement. The annual compliance is due after the AGM of the company since its first financial year.
Since July 2018, companies failing to follow the statutory compliance for Private Limited will be charged ₹100 for each day of a delay till the actual date of filing. There is no ceiling limit to an additional fee. For continuous failure, penalty apart from the additional Government fee can be levied on both – company and directors, including the imprisonment.
Audited financial statements are necessary for every company since its incorporation. The company must file the audited statements only. Also, non-audit of financial statement is not an excuse to delay the annual filing.
A company can opt to appoint a statutory auditor either for a period of five consecutive years or till the conclusion of next AGM. Therefore, an appointment of the statutory auditor cannot be considered as a part of annual compliance.
As per Companies Act, 2013 it is mandatory to submit the signed Director Report for every financial year with MCA by filing an Annual return of the company. The Director Report is considered as an attachment for the form MGT-7.
Form ADT-1 is required to be filed for appointment or replacement of Statutory Auditor.
MGT-9 is an attachment to the company’s director report which is an extract of MGT-7 and addresses the following :
1. Registration and other details like CIN, date of incorporation, companies name and address of a registered office
2. Principle business activity of the company
3. Of holding, subsidiary, and associate companies
4. Shareholding pattern
5. Indebtedness of the company
6. Remuneration of managing directors, directors and/or manager, and key managerial personnel.
7. Penalties/ Punishment/ Compounding of offense.
Such intimation can be made through filing MGT-7 by the company.
- Professional Tax Registration is mandatory only for new companies incorporated in Maharashtra, Karnataka, and West Bengal.
- Shops and Establishment Registration is optional. Also, it is available only for new companies incorporated in Delhi. But, it is recommended to opt for registration as the website of the Labour Department will not provide the service to apply for First Time Registration.
- It is mandatory for all the new companies incorporated using SPICe+ to select a Bank for opening a current account. At present, many Banks are integrated with AGILE-PRO-S for opening a Bank account. Punjab National Bank, ICICI Bank, SBI, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, INDUS IND Bank, UBI Bank, and Axis Bank to name a few.
Authorities like Employees State Insurance Corporation (ESIC), Employees Provident Fund Organization (EPFO), GST Department, Bank, NSDL, Income Tax Department, Commercial Tax Department of respective states for PT Registration, and Labour Department get the details of the new company that is incorporated. Additionally, the basic details of the company and directors are published by MCA on its portal under the section “Master Data”.
