ROC Compliances for Private Limited Companies

Operating a private limited company entails not just day-to-day operations and commercial strategy, but also compliance with many legal and regulatory regulations. These standards, known as ROC (Registrar of Companies) compliances, ensure the company’s operations are transparent, accountable, and legal. This blog will go over the basic ROC compliances that a private limited companies must follow, as well as a complete event-based compliance table.

Mandatory ROC Compliances for a Private Limited Company

1. Auditor Appointment

 Every company shall appoint their auditor within 30 days of registration. This is a mandatory compliance for every company.

2. Board Meetings

Private limited corporations must hold regular board meetings to debate and make crucial decisions about the company’s operations, finances, and strategies. Private limited companies shall conduct at least 4 board meetings in a year.

3. Commencement of Business Filing in Form 20A

Form 20A is a mandatory filing for any company that was incorporated after November 2018. Form 20A is meant for declaration that company has transferred the respective paid up share capital in the bank and is considered to be operational or that it has commenced its business. This has to be done within 180 days of company incorporation.

4. Annual General Meeting (AGM)

An AGM is a yearly meeting of shareholders and directors to examine the company’s financial performance, future plans, and other important issues. The company’s financial accounts are given, and shareholders have the opportunity to ask questions.

5. Disclosure of Director’s Interest

A private limited company’s directors are obligated to disclose their financial interests in any contracts, arrangements, or transactions involving the company. This transparency helps to avoid conflicts of interest and ensures that decisions are made fairly.

6. Filing of Income Tax and Annual Return

Private limited corporations are required to file an annual income tax return . They must also file an annual return with the Registrar of Companies. This return contains information about the company’s audited Balance sheet, Profit Loss Account, shareholder structure, and other important factors. Forms such as AOC-4, MGT-7/7A

7. Maintenance of Statutory Registers

The firm is required to keep certain statutory registers, such as the register of members, the register of directors, and the register of charges. These registers provide critical information on the company’s shareholders, directors, and liabilities.

8. Filing of Director’s Identification Number (DIN) KYC

Private limited company directors must complete their KYC (Know Your Customer) for their Director’s Identification Number. To ensure the accuracy of the records, this process entails validating and updating personal information.

 Read more on KYC

Event-Based ROC Compliances for a Private Limited Company

A detailed table defining the nature of compliances, pertinent sections, e-forms, and descriptions for event-based ROC compliances is provided below:

Nature of CompliancesSectionE-FormDescription of Compliances
Incorporation DocumentsCompanies Act, 2013INC-7Submission of incorporation documents (Memorandum and Articles of Association)
Appointment of DirectorsCompanies Act, 2013DIR-12Intimation of appointment/cessation of directors and changes in director details
Allotment of SharesCompanies Act, 2013PAS-3Filing details of shares allotted during the incorporation or subsequently.
Change in RegisteredCompanies Act, 2013INC-22Intimation of change in the company’s registered address
Office Address Alteration of CapitalCompanies Act, 2013SH-7Notice of alteration of share capital (increase/decrease in capital)
Board MeetingsCompanies Act, 2013MBP-1Disclosure of interest by directors in board meetings and committee meetings
Appointment/Resignation of Key Managerial PersonnelCompanies Act, 2013DIR-12
Filing changes in key managerial personnel (Managing Director, CEO, CFO, etc.)
Share TransferCompanies Act,2013SH-4
Filing of share transfer details
Annual General MeetingCompanies Act, 2013MGT-7Filing annual returns and disclosures within 60 days of AGM
Disclosure of Interest in ContractsCompanies Act, 2013MBP-1Disclosure of interest by directors in contracts, arrangements, or transactions
Appointment of AuditorCompanies Act, 2013ADT-1Intimation of auditor’s appointment or reappointment
Filing of Financial StatementsCompanies Act, 2013AOC-4Filing of financial statements, including balance sheet
Charges on Company’s AssetsCompanies Act, 2013CHG-1Intimation of creation or modification of charges
DIN KYC Companies Act, 2013DIR-3 KYCFiling director’s KYC details
Certificate of Commencement of Business
Companies Act, 2013INC-20AApplication for obtaining Certificate of Commencement of Business
Please keep in mind that this table only provides a high-level overview of the event-based ROC compliances. Specifics may vary depending on the conditions of the organization, changes in regulatory regulations, and other considerations.

Read more about ROC Compliances E-Form

Conclusion

Finally, following ROC compliances is a critical component of running a private limited company. Non compliance with Roc has a huge penalty and it may result in striking off the company. These compliances help not just to legal compliance but also to the company’s credibility, transparency, and seamless operation. To negotiate the complicated environment of ROC compliances, businesses should have their tax and compliance consultant who looks after their compliance matter. TAXVIC helps small and medium companies fulfill all the roc compliance needed for a private limited company. 

Need Professional Guidance: info@taxvic.com
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