Annual Compliance for Private Limited Company

Similar to other businesses, the annual compliance of private limited companies should be taken seriously. All the company compliances should be filed on or before the due date. Here are some of the private limited company compliances that you should not miss.

1. Business Commencement Certificate

As a part of the annual compliance for private limited companies, it is mandatory to have a business commencement certificate within 180 days of company incorporation. This applies to companies registered after November 2019 and having a share capital.

Penalty for not following this annual compliance: If you fail to procure the certificate of commencement, the company will be subjected to a penalty of ₹50000 and the director should pay ₹1000 for each default day.

2. Appointing an Auditor

Within 30 days of incorporation, an auditor must be appointed as per the ROC compliance. The annual filing of a company should include all of this information.

Penalty for not following this annual compliance: Breaching this private limited company compliance results in a fine of ₹300 per month. Subsequently, the company will not be allowed to conduct business until they appoint an auditor.

3. Filing ITR returns

For private limited companies, this annual compliance is crucial. Every year the income tax returns have to be filed on or before the due date.

4. Submitting MCA Form AOC-4

Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 13 November.

Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹200 per day of default.

5. Filing MCA Form MGT-7

Private limited companies must submit form MGT 7 to the MCA to adhere to the annual compliance. This has to be completed on or before 13 November.

Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹200 per day of default.

6. Filing for DIN eKYC

As per the ROC compliance, every private limited company should have a director. To perform all the tasks without difficulty, a Director Identification Number (DIN) is required. The director of the company should file DIN eKYC within the speculated period.

7. Hold Annual General Meetings (AGM)

This is crucial for annual compliance for private limited companies. During the annual filing of companies, all information about the AGM should be provided. It is required to hold an AGM within six months of the end of the fiscal year by ROC compliance.

8. Directors Report

Private company compliance involves providing director reports on time with the ROC and MCA. All the information should be submitted without fail as per Section 134.

Other Annual Compliances for Companies

Apart from the above mentioned company compliances the following should also be completed from time to time.