A private limited company recently started up has to follow a number of compliances laid down by statutes and also by other regulating bodies. Moreover, the following checklist is applicable for companies with paid-up capital up to 50 lakh and an annual turnover of last year below 2Cr.
The Compliances for Private Limited Company can be categorized as follows:
- Firstly, Registrar related compliance
- Secondly, Non-Registrar compliance
Registrar related compliance
The company has the authority to remove a director by passing an Ordinary Resolution only if the Central Government or the Tribunal has not appointed that director.
Appointment of Auditor(E-form ADT-1):
Board has to appoint first Statutory Auditor in first board meeting within 30 days of incorporation.
Subsequent auditors will be appointed for 5 years in AGM.
Thereafter in every year AGM, shareholders ratify the auditor however, there is no need to file ADT-1.
Holding Board Meeting:
The first board meeting is to be held within 30 days of incorporation.
Minimum 2 meetings are mandatory, one in each half calendar year with a minimum gap of 90 days in between.
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 a minimum gap of 15 months between 2 AGMs.
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 obligatory if there is a change in his interest.
DIR-8: Every director in each financial year has to file with company disclosure of non-disqualification.
It should be filed covering all information and should be signed by “Chairperson” authorized by the board and when not authorized then by at least 2 directors.
Statutory registers as well as Books of Accounts:
- Statutory registers
- Minutes book:
- Board Meeting minutes book
- Likewise, General meeting minutes book(AGM, EGM, Creditors meeting, Postal Ballot)
- Register of attendance of a director at Board/Committee meetings
- Books of accounts as well as financial statements
- The 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.
The 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.
- Filing of periodical returns(Monthly, Quarterly, Annual returns-TDS, GST)
- Payment of periodical dues(TDS TCS payment, GST liability)
- Assessment of advance tax liability and also its payment periodically
- Filing of Income Tax Returns
- Also, Filing of Tax Audit Report.
Besides Annual Compliance,there are various other compliances which are mandatory as and when any event takes place in the company:
– Change in authorized 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 also payment of remuneration
– Appointment or change of statutory auditors of the company
– Opening or closing of bank accounts or change in bank signatories
A Private Limited Company should file Form ADT- 1 on MCA. Form ADT-1 is the form for appointment of auditor to intimate the ROC i.e. Registrar of Companies. As per Sec 139 (1) of the new Companies Act, 2013 it is mandatory for the Company to file Form ADT-1 once it appoints the auditor.
Every company has to appoint an individual or a firm as an auditor at the first annual general meeting. Also, the company can appoint an auditor for each financial year or for 5 consecutive financial years.