Annual Compliance for Private Company

Annual compliance for Private Company is a legal institute enjoying a separate personality which requires controlling its active status through the regular filing with MCA. But For every business, it is compulsory to file an annual return and audit financial reports with MCA for every fiscal year. The RoC filing is so necessary irrespective of the turnover, it is zero or in crore.
But the forms are apply to report the activities and financial date for concerned Financial Year.  The perpetual failure  lead to the elimination of the company’s name from RoC’s register, including incompetence of director.

  Mandatory Annual Compliances  for Private Company

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

• 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:
  But 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  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).
• Subsequent Auditor: The BOD  delegate the  Auditor in first AGM of Company who  hold the position till the conclusion of 6th AGM and 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 within 15 days from the time of appointment
• Annual General Meeting: The BOD delegate the  Auditor in first AGM of Company who hold the position  the conclusion of 6th AGM and  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.
• 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’.

                                               Event-Based Annual Compliances  for Private Company

So Hence, it is essential that the happening of such events get tracked, and docility met with on time to avoid penalties or additional fees. Some of the Event-based agreements are mention below:

                          Stipulations of Annual Compliance for Private Company

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

                           Benefits of Annual Compliance

• 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. 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. But The concerned directors are also excluded and debarred from their further appointment. Since July 2018, a supplementary fee of Rs.100 for each day of delay the date of filing.

                      Latest: Checklist of Annual Compliance for Private Startups

So,These include but are not restrict only to the periodic filing of tax and other returns, and accommodating the board and other meetings, maintaining sanctioned 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 Assessment of trade under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)

Documents Required for Annual Compliance for Private Company and Filing

• Incorporation Certificate
• 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 provide and presented

Procedure for Annual Compliance for Private Company  and Filling

• Monitrix obtain your request for Private Limited Company compliance
• We assign a skilled resource because who is professionally equiped in business compliance. The allotted resource support you to manage the compliance for your Private Limited Company. But you  get in touch with the authorised resource .
• Our support will collect all the required documents/erudition and will complete all below designated compliance activities for your Private Limited Company.

1. 1. 1. Manage Accounts and Make financial statements
      2. Annual returns
      3. Annual General Meeting
      4. Board meetings
      5. Annual Filing of Forms
      6. Yearly Forms by Directors

• Our support will collect all the needed documents/information and file your Private Limited Company but income tax return with ROC (Registrar of Companies) along with the necessary documents after getting final approval from your finance team if require.
• 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.

                                                          Conclusion

For every business, but it is compulsory to file an annual return and audited financial reports with MCA for every fiscal year. Because The RoC filing is necessary irrespective of the turnover, whether it is zero or in crore.  The due terms for annual filing of a company are based on the time of the Annual General Meeting. The perpetual failure lead to the elimination of the company’s name from RoC’s register,and  including incompetence of directors.