Overview of Annual Compliance for Private Company

A Private Company is a legal institute enjoying a separate personality which requires controlling its active status through the regular filing with MCA. For every business, it is compulsory to file an annual return and audited financial reports with MCA for every fiscal year. The RoC filing is necessary irrespective of the turnover, whether it is zero or in crore. Whether a single business is undertaken or none, annual compliances for private limited are compulsory 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 incompetence of directors. Also, it has been noticed that MCA has actively taken bold measures for dealing with any such failures. The compliances relevant to the company could be segregated into two sections Mandatory Compliances and Event-Based Compliances.

Mandatory Annual Compliances

We have developed some of the mandatory agreements that a private Limited company must ensure:

• First Board Meeting

  First Meeting of Board, along with Directors, is expected to be held within 30 days of Incorporation of Company. Declaration of BM must be sent to each director at least seven days ere the meeting.

• Subsequent Board Meetings

  Minimum of 4 Board Meetings to be checked every year with not more than 120 days gap within two meetings.

• Filing of Acknowledgement of interest by Directors

  Every director at:

  1. The first meeting in which he engages as director; or

  2. The first meeting of Board in each FY; or

  3. Whenever there is a variety in disclosures shall reveal in Form MBP 1 (along with a list of relatives and attention of relatives in the Company as per RPT definition), his interest or interest in any company, body corporate, organizers/firms or other organization of individuals (including shareholding interest). Form MBP‐1 shall be kept in the documents of the Company.

• First Auditor

  the BOD shall designate the first Auditor of the Company within 30 days of Incorporation who shall continue the office till the completion of 1st AGM. In the matter of First Auditor, filing of ADT-1 is not necessary.

• Subsequent Auditor

  The BOD shall delegate the Auditor Auditor in first AGM of Company who shall hold the position till the conclusion of 6th AGM and shall notify the same to ROC by filing ADT-1. The capacity to submit Form ADT 1 is that of the Company and not of the Auditor Auditor within 15 days from the time of appointment.

• Annual General Meeting

  Every Company is needed to hold an Annual General Meeting on or before 30th September every year during working hours (9 am to 6 pm). On a day that is not a general public holiday and either at the certified office of the Company within the city, town/ village where the certified office is positioned. A 21 bright days' notice is required to be given for the same.

• Filing of Annual Return (Form MGT-7)

  Each and every Private Limited Company is expected to file its Annual Return within 60 days of operating of Annual General Meeting. Annual Return will be for the time' 1st April to 31st March'.

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

  Each and every private Limited Company is expected to file its 'Balance Sheet' along with a statement of 'Profit and Loss Account' and 'Director Report' in this Form in 30 days of holding of 'Annual General Meeting'.

• Statutory Audit of Accounts

  Each and every Company should prepare its Accounts and get the exact audited by a Professionals/Chartered Accountant at the end of the Financial Year mandatorily. The Auditor should provide an Audit Report and the Audited Financial Statements to file it with the Registrar.

Event-Based Compliances

Even based compliances are those who get triggered upon following of certain events like change in directors, change of registered office, change in approved share capital etc. Hence, it is essential that the happening of such events get tracked, and docility met with on time to avoid penalties or additional fees.

Stipulations of Non-Compliances

If a company declines to follow any of the administrative compliances, then the Company and every officer who is in arrears shall be guilty with a fine for the period for which default remains. Hence the penalties will keep on escalating as the period of non-compliance increases.

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 for a corporation from the investors, the investors demand all financial histories and date before settling the proposal. The investors may either request the company directly or can also check the economic reports from the MCA portal. Investors also lead to favour companies with regular compliance reports.

• Maintain Active State and Avoid Punishments

  Constant failure in filing the return turns the company status to failure and charges it with heavy penalties. The company may also be disclosed as defunct or removed from the RoC. The concerned directors are also excluded and debarred from their further appointment. Since July 2018, a supplementary fee of ₹100 for each day of delay has been levied till the date of filing.

Prowiz Procedure for Private Limited Company Annual Compliance & Filling

• Prowiz obtained your request for Private Limited Company compliance
• We will assign a skilled resource who is professionally equiped in business compliance. The allotted resource support you to manage the compliance for your Private Limited Company. You can get in touch with the authorised resource at any point of time for deliberation and assistance concerning compliance throughout your journey with Prowiz.
• Our support will help your Private Limited Company to maintain statements and prepare the financial report for each year.
• Our support will collect all the required documents/erudition and will complete all below designated compliance activities for your Private Limited Company.

  Manage Accounts and Make financial statements

  Annual returns

  Annual General Meeting

  Board meetings

  Director reports

  Annual Filing of Forms

  Yearly Forms by Directors

• Our support will collect all the needed documents/information and file your Private Limited Company income tax return with ROC (Registrar of Companies) along with the necessary documents after getting final approval from your finance team if required.
• Our support will help your Private Limited Company in accounts scrutiny.
• Our support will draft minutes of meetings, announcements and will also manage the statutory register.
• Preceding seven steps completes your Private Limited Company compliance under Companies Act 2013.