Compliance for private company is extremely important | Know all about annual filing requirement for a private limited company in India
As per The Companies Act, 2013 there are some of the mandatory Company compliances that needs to be documented and filed by every Company be it one person or a private limited or a limited liability company. These ROC Compliances that is company law compliances are compulsory for every company registered in India. Any missing of reporting and filing will prompt heavy penalties, punishments and other lawful consequences. Unfortunately there is no way to avoid the penalty on failing to file your company returns with ROC.
These Company compliances for the Private Limited Company are divided into two parts which are as follows-
1. Company Compliances which are mandatory in India:
A Private Limited Company must comply with mandatory compliances for ROC . These compliances mandated by the law under companies Act and can be completed with the help of CA Services Online and are as follows-
- Appointing the Statutory Auditor-The Board of Directors must appoint the First Auditor of the Company within 30 days of incorporation of your company. The auditor shall hold the office till the conclusion of the first Annual General Meeting. Appointing other subsequent Auditors: The Board of Directors in the First and every subsequent Annual General Meeting must appoint or ratify the auditor. The relevant form to be filed in appointment of first auditor of private limited company is Form ADT-1.
- Filing of Commencement of Business Certificate: Form 20A is a relevanct form to be filed by every registered company in India. This has to be done within 180 days of company registered/incorporated. Filing of commencement of business certificate is mandatory failing of which leads to penalty on per day basis. This is filed in ordert o report to the authority that the company is valid and is operational.
- Audit Compliances: Every Company needs to maintain and update books of accounts which at the year end or periodically be audited by a Chartered Accountant. The statutory auditor will provide the opinion on audit along with the audit report and the audited financial statements after auditing the books of accounts at the end of the financial year for filing the same with the ROC.
- Board Meeting: It is mandatory that a minimum of 4 (four) board meetings are held within a period of one year, which implies 1 (one) board meeting every quarter. The quorum of directors being 1/3rd or the two directors, and whichever will be greater shall be present for the meeting. Such board meetings must be logged and signed minutes must be maintained. Your service provider will guide you for this event based compliance
- Annual General Meeting: A meeting for shareholders is required to be held every single year, for the primary matters such as approval for the financial statements, declaration of their dividends, auditor’s appointment etc. AGM is to be held in place where company’s registered office situated . The Companies are required to hold an Annual General Meeting on or before 30th September of each financial year. Your service provider will guide you for this event based compliance
- ROC Filing: It’s an yearly compliance for every company. After your auditor provides you with audited financial statements, this is filed with the Registrar of Companies. Filing the Financial Statements is done through Form AOC-4 by the Private Limited Companies within 30 days of holding the Annual General Meeting and filing of the Annual Return is done through Form MGT-7 within 60 days from the date of the AGM.
2. There are other Company compliances that a Private Limited Company must follow , which are event based compliances
- Filing of Form INC-22 for any change in the registered office of the Company.
- If there is any change in the authorised, paid-up share capital of the Company.
- Form DIR-3KYC in each financial year for application of KYC of all the directors. Failing leads to penalty of 5000 for each director. To ROC
- Any change of directors in the company like removal, addition , This needs to be intimated within 30 days of change.
- Form MGT-14 for filing agreements and resolution by the company. This has to be filed within the 30 days of passing of such resolution.
- Form INC-20A (commencement of business certificate) is to be filed within 180 days of the incorporation of the Private Limited Company for declaration of commencement or of your business. Better to consult ca services online as in case company has not staretd the business then also Form 20A is compulsory. Some fails to file it thinking they have not started the business but later on they have to face huge penalty.
- Form CHG-1 to be filed by the Private Limited Company if there is a change in the secured borrowings and this is to be filed within 30 days.
Q- What are the major compliances for a private limited company ?
- Statutory Audit
- ITR Filling
- Annual Filing: Form AOC-4, MGT-7
Q- Is ROC filing mandatory even if I have no business during the year?
Yes, irrespective of the turnover, operations each and every company needs to comply with ROC annual filing. Failing of which leads to penalty and each day penalty increases and there is no waiver process or anything. Timely filing will saves you money and stress.
Q- Is audit compulsory for a private imited company?
It is compaulsory to appoint auditor and then comply with the audit of your books of accounts
Q- What is MCA annual filing or ROC filing?
MCA annual filing onsists of filing Form AOC-4 and MGT -7 with the Registrar of Companies. This is basically filing of your audited balance sheet, Profit Loss, Cash Flow (in certain cases) with the ROC.
Q- What documents should be submitted for ROC filing for private limited companies?
Balance sheet and Profit Loss accounts that is audited by CA. You can book appointment with CA online at tax vic Expert CA Reetu (9711310417) to understand this
Director and shareholders detail
Any changes in the management
Meetings conducted during the year by the company per company law
Q- Can we do the mca or roc filing ourselves?
No, You need a professional service provider such as a chartered accountant near me options or CA services online who are experiences in this. You can connect with few then decide which online ca services suits your business needs.
Q- What are the penalty for non filing ?
It depends on how late you are, what is your capital, which all filings you have missed so there is no fixed amount of penalty for it, A service provider can guide you better on this. Need help? Book appointment with CA online today at Tax vic.