Overview

A private company is a legal institution enjoying a distinct personality which is required to control its active status through regular filings with the MCA. For each business, it is mandatory to file annual returns and audited financial reports with the MCA for each financial year. ROC filing is required irrespective of turnover, whether it is zero or crore. Whether a single business is conducted or not, annual compliance for private limited is mandatory for every certified company.

Both the forms are applied to report the activities and financial date for concerned Financial Year. The due terms for annual filing of a company are based on the time of the Annual General Meeting. The perpetual failure may lead to the elimination of the company’s name from RoC’s Register including directors' incompetence. Furthermore, it is observed that MCA has actively taken bold steps to deal with any such failure. Compliance relevant to the company can be separated into two classes of mandatory complaints and incident-based complaints.

Event-based

Even based compliance are those that begin after certain events such as change in director, change of registered office, change in approved share capital etc. Therefore, it is necessary that such events are monitored and timely to avoid penalty or additional charges from the docket. Some of the event-based agreements are mentioned below, along with the timeframe:

Annual Compliance One Pvt. Limited Company

Mandatory Annual Complaints

We have developed some mandatory agreements that a private limited company should ensure:

• Later Auditor

  The BOD will present the auditor at the first AGM of the company to the auditor who will hold the position till the end of the 6th AGM and inform the ROC by filing ADT-1. The ability to submit Form ADT 1 is within 15 days from the time of appointment to the company and not to the auditor.

• Annual General Meeting

  Every company is required to hold an annual general meeting on or before 30 September every year during working hours (9 am to 6 pm). A day which is not a normal public holiday and either in the certified office of the company in the city, town / village where the certified office is stationed. For that, 21 bright days notice is required.

• Filing of Annual Return (Form MGT-7)

  Each and every private limited company is expected to file its annual return within 60 days of the conduct of the Annual General Meeting. The annual return will be for the period 'April 1 to March 31'.

• Filing of Financial Statements in (Form AOC-4)

  Each and every Private Limited Company is expected to submit its 'Balance Sheet' with details of 'Profit and Loss Account' and 'Director's Report' in this form within 30 days of holding the 'Annual General Meeting'. Please enter. <. / p>

• Statutory audit of accounts

  Each and every company should prepare their accounts and be audited by a professional / chartered accountant, essentially at the end of the financial year. The auditor should provide an audit report and audited financial statements for filing with the registrar.

Stipend of non-complaints

If a company decides to follow any administrative compliance, the company and each officer who is outstanding will be guilty with a penalty for the period for which the default remains. Hence the penalty will continue to increase as the period of non-compliance increases.

• First Board Meeting

  The first meeting of the board with the directors is expected to be held within 30 days of the incorporation of the company. The BM declaration must be sent to each director for at least seven days after the meeting.

• Subsequent Board Meetings

  Examination of minimum 4 board meetings to be held every year with an interval of more than 120 days within two meetings.

• Filing of receipt of interest by directors

  Every director at:

  1. The first meeting in which he engaged as a director; Or

  2. First meeting of the board in each financial year; Or

  3. Whenever there is variation in the disclosure, the form will appear in MBP 1 (with the list of relatives and relatives in the company as per RPT definition), of their interest or interest in any company, body corporate, organizers / firms or other organization ( Stake including interest). Form MBP MB 1 will be placed in the company's documents.

• First Auditor

  The BOD shall designate the first auditor of the company within 30 days of incorporation who will continue in office until the completion of 1 AGM. In the case of the first auditor, filing of ADT-1 is not necessary.

Benefits

• Establishing a Company’s Credibility

  Compliance of law is the fundamental requirement for any company—the date of the company’s annual return filing performed on the Master Data on the MCA portal. Ministry tenders, loan support or for similar other purposes, the consistency in compliance is an important criterion to measure the reliability of an organization.

• Invite Investors

  While attracting funds from the investors to the corporation, the investors demand all the financial history and date before settling the proposal. Investors can request directly from the company or can also view the economic report from the MCA portal. Investors favor companies with regular compliance reports.

• Maintain active status and avoid punishment

  Consistent failure to file a return leads to the company's position being a failure and imposes heavy fines. The company may also be disclosed as a DOC or removed from the ROC. The directors concerned are also excluded and denied their further appointment. From July 2018, a supplementary fee of July 100 has been imposed for each day of delay until the date of filing.

checklist for private startups

Startups operating as a private limited company have to comply with the various statutes and compliance standards set by other administrative bodies. These include, but are not limited to only filing tax and other returns, accommodating board and other meetings, maintaining approved books and accounts etc.

• Payment of periodic dues: GST Liability, TDS & TCS mandatory payment
• Non-Registrar compliance of periodic returns – (Monthly, quarterly, annual returns- GST, TDS, etc)
• Monthly/Quarterly- GST Returns 
• Quarterly-TDS Returns
• Evaluation of advance tax liability and payment of advance tax periodically
• Filing of Income Tax Returns (Tax will be obligatory at a flat rate of 30% plus Education Cess) 
• Filing of Tax Audit Report 
• Administrative evaluation of business under various acts of law (eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)

Required Documents

• certificate of incorporation
• 1. PAN card2. Certificate of incorporation and
• 3.MoA – AoA of Private Company
• Audited Financial Statements
• An independent auditor must audit financial Statements 
• Audit Report & Board Report
• Independent auditor’s report and Board report must be concerned
• DSC of Director
• Accurate and active DSC of one of the directors must be provided and presented

Procedure

• Servzone received your request for private limited company compliance
• We will provide an efficient resource that is professionally equipped in business compliance. The allocated resources support you to manage compliance with your private limited company. You can contact the authorized resource at any time for discussions and assistance regarding compliance during your visit with servzone.
• Our support will help your private limited company to maintain the statements and prepare financial reports for each year.
• Our support will collect / eradicate all necessary documents and complete all below the compliance activities specified for your private limited company.
• Manage accounts and create financial statements
• Annual Return
• Annual General Meeting
• Board meetings
• Director Report
• Annual filing of form
• Annual Forms by Directors
• Our support will collect all the necessary documents information and if necessary obtain final approval from its finance team and file its private limited company income tax return with the ROC (Registrar of Companies) along with the required documents.
• Our support will help your private limited company to check the accounts.
• Our support will draft minutes meetings, announcements and also manage the statutory register.
• Preceding seven steps completes your Private Limited Company compliance under Companies Act 2013.

Briefly Up

Running a business, especially as a private limited company, is not something to be taken lightly. This requires a great deal of time and effort and significant knowledge of many financial and administrative techniques.

Compliance is a company asset that, if used in the correct way, can bring companies an aggressive advantage, customer trust and finally return on investment. The agreement is not only ‘doing the right thing’, or ‘ticking a box’ but it is the form of working, part of the business, investor confidence, understandable and open culture. Remember, the cost of non-compliance is always more than the cost of compliance. There are established and competent experts in the market today ready and willing to help you at every step of the business cycle, not only in consolidation but with all the compliance and supervisory requirements through the long life of your organization.