Annual Compliance for Private Limited Company

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By Hiral Vakil on March 11, 2019

A private limited company recently started up has to follow number of compliances laid down by statutes and regulating bodies.The following checklist is applicable for companies with paid up capital upto 50 lakh and annual turnover of last year below 2Cr.

The compliance’s can be categorized as follows:

  • Registrar related compliance
  • Non-Registrar compliance

Registrar related compliance

The company has authority to remove a director by passing an Ordinary Resolution only if the director was not appointed by the Central Government or the Tribunal.

  1. Appointment of Auditor(E-form ADT-1):
    • First Statutory Auditor has to be appointed in first board meeting within 30 days of incorporation.
    • Subsequent auditors will be appointed for 5 years in AGM.
    • Thereafter in every year AGM,shareholder ratify the auditor but there is no need to file ADT-1.
  2. Holding Board Meeting:
    • First board meeting is to be held within 30 days of incorporation.
    • Minimum 2 meetings shall be held,one in each half calendar year with minimum gap of 90 days in between.
  3. Holding Annual General Meeting(AGM):
    • Annual General Meeting of a newly incorporated company should be held within 18 months from date of registration or 9 months from date of closing of financial year whichever is earlier and there should be minimum gap of 15 months between 2 AGMs.
  4. E-forms filing requirements:
    • MGT-7: First Annual Return shall be filed within 60 days of holding AGM for the period of 1st April to 31st March.
    • AOC-4: File Financial Statement that is Balance sheet along with Profit and Loss Statement and Directors Report.
    • MBP-1: In the First Meeting of Board every director of the company shall disclose his interest in other entities.Fresh MBP-1 is to be filed if there is change in his interest.
    • DIR-8: Every director in each financial year has to file with company disclosure of non disqualification.
  5. Directors Report:
    • It should be filed covering all information and should be signed by “Chairperson” authorised by board and when not authorised then by at least 2 directors.
  6. Statutory registers and Books of Accounts:
    • Statutory registers
    • Minutes book:
      • Board Meeting minutes book
      • General meeting minutes book(AGM, EGM, Creditors meeting,Postal Ballot)
    • Register of attendance of director at Board/Committee meetings
    • Books of accounts/Financial statements
    • Company will send to the members of the company approved Financial statement,Directors’ report and Auditors’ report at least 21 clear days before the AGM.

Non-Registrar compliance

  1. Filing of periodical returns(Monthly, Quarterly, Annual returns-TDS, GST)
  2. Payment of periodical dues(TDS TCS payment, GST liability
  3. Assessment of advance tax liability and its payment periodically
  4. Filing of Income Tax Returns
  5. Filing of Tax Audit Report.

FAQs:

1. What are the compliance’s for resignation/removal of director?

Besides Annual Compliance,there are various other compliances which are to be done as and when any event takes place in the company:

  • Change in authorised or Paid up Capital of the company
  • Allotment of new shares or transfer of shares
  • Giving Loans to directors or other companies
  • Appointment of Managing or Whole time director and payment of remuneration
  • Appointment or change of statutory auditors of the company
  • Opening or closing of bank accounts or change in bank signatories