A Public Limited Company is a separate legal business entity having limited liability with a minimum of 3 directors & 7 members. The securities of a limited company are traded on a stock exchange. Therefore, it is mandatory to file annual compliances by Public Limited company on time as per dates defined by ROC. Further, the public company enjoys huge benefits like
- Limited liability,
- Transferability,
- Borrowing capacity, etc.
However, failure in filing compliances by Public Limited Company on time leads to heavy penalties on business.
Following are Annual Compliances of Public Company:
- Annual Return Compliances
- The company should file an Annual Return in Form MGT 7. It also includes details related to directors and shareholders for the period of the financial year.
- The due date for the Annual Return is within 60 days of holding Annual General Meeting
- The Annual Return consists of Financial statements, shareholding structure, compliance certificate, and details of various registers maintained.
- Maintenance of Books of Accounts and preparation of Financial Statements
- Every Public company should compulsorily maintain the books of accounts each financial year.
- Further, the shareholders should approve the financial statement in the general meeting.
- File Form AOC-4 with the time stipulated. Along with the Balance Sheet, Profit and Loss Account, Directors’ Report, Cash Flow Statement, Auditor’s Report, and the Consolidated Financial Statement.
- Income Tax Returns
- The company should file its Income Tax return on or before 30th September.
- Secretarial Audit Report in Form MR-3
- File Form MGT-14 for Adoption of Financials and Director’s Report.
- Annual Compliances under all Rules and Regulations associated with SEBI
- Other Mandatory Compliances:
- Holding of Annual general meeting once in a financial year for approving the financial statements
- Conducting Board Meetings 4 times a year.
- Filing of the Director’s Report once in a year.
- File form MGT-15 regarding an exclusive report on the Annual General Meeting (AGM) of the company.
FAQs
Yes. Penalty is levied in case of delay in annual filling or non filing.
A Director of the company and a CA/ CS should digitally sign Annual return.
Public Limited Company should file Annual returns every year. Along with the Balance Sheet, P&L Account, and other documents. However, it is different from the income tax return and it’s governed by the Ministry of Corporate Affairs.
Hello @Heer_Mandaliya
Prospectus is a formal document that a Public Company issues to invite offers from public for subscribing its shares. It includes all the material information related to shares that a Company offers to the public. Furthermore, it usually help the investors to take investment decisions. Generally there are 4 types of Prospectus -
You can learn more about various Prospectus in detail here:
Hope this helps!