Company Annual Compliances
Running a Private Limited or Public Limited Company was once a simple procedure under the Companies Act, 1956, as the Registrar of Companies (ROC) did not enforce strict penalties on defaulters. However, under the new Companies Act, 2013, stringent regulatory provisions have been introduced. In case of non-compliance, the company and its management personnel can face substantial monetary penalties along with other legal consequences.
To avoid such risks, it is crucial to meet all statutory compliances on time. At TwinDesk Accounting and Legal Advisors LLP, we help businesses fulfill their ROC legal requirements and company annual compliances, ensuring a smooth and hassle-free experience.
What Are the Mandatory Compliances for a Private Limited Company?
Compared to a Public Limited Company, the statutory compliances for a Private Limited Company are less stringent. Below are some of the essential compliance requirements for Private Limited Companies:
1. First Board Meeting
As per the Companies Act, 2013, a company must hold its first board meeting within 30 days of incorporation. A notice must be sent to all directors at least 7 days prior to the meeting.
2. Subsequent Board Meetings
Every company is required to conduct at least 4 board meetings annually, with an interval of no more than 120 days between two meetings. However, certain companies are allowed to hold only two board meetings, provided there is a minimum gap of 90 days between them.
3. Disclosure of Interest by Directors
Every director must disclose their interest in any company, firm, or association in the following cases:
- At the first board meeting they attend as a director.
- At the first board meeting of every financial year.
- Whenever there is any change in interest.
This disclosure must be made using Form MBP-1 and must include a list of relatives and their concerns as per the Related Party Transaction definition. The form should be filed timely and maintained in company records.
4. Appointment of First Auditor
The Board of Directors must appoint the first auditor within 30 days of incorporation. This auditor will hold office until the first Annual General Meeting (AGM). Notably, filing Form ADT-1 is not mandatory for the first auditor appointment.
5. Appointment of Subsequent Auditor
During the first AGM, the Board must appoint an auditor who will serve until the conclusion of the sixth AGM. The company must file Form ADT-1 with the ROC within 15 days of appointment to notify them of the auditor’s appointment.
6. Holding of Annual General Meeting (AGM)
Every Private Limited Company must hold an AGM on or before 30th September each year, during business hours, on a non-public holiday at the registered office or in the same city, town, or village.
For ROC filing, a 21-day clear notice must be sent to all shareholders before the AGM. The ROC filing fees depend on multiple factors such as company size and share capital.
7. Filing of Annual Return (Form MGT-7)
Every Private Limited Company must file its Annual Return (Form MGT-7) within 60 days of the AGM. The return must cover the period from 1st April to 31st March of the respective financial year.
8. Filing of Financial Statements (Form AOC-4)
A company must file its audited balance sheet, profit and loss statement, and Board’s Report in Form AOC-4 with the Ministry of Corporate Affairs (MCA) within 30 days of the AGM.
9. Statutory Audit of Accounts
Every company must prepare its books of accounts and get them audited by a Chartered Accountant (CA). After the Board of Directors’ approval, the auditor will issue an Audit Report, which must be filed with the Registrar of Companies (ROC).
Post-Incorporation Compliances
Compliances do not end with company registration. Several post-incorporation requirements must also be met. It is highly recommended to hire an experienced professional to ensure compliance and avoid penalties.
DPT-3 Filing
Companies that have received money or loans due must file Form DPT-3. The DPT-3 filing fees vary based on company size and financial transactions.
How TwinDesk Accounting and Legal Advisors LLP Can Assist You
At TwinDesk Accounting and Legal Advisors LLP, we specialize in Private Limited Company Compliances and ROC Filing Services in Delhi. Our dedicated team ensures your business meets all legal requirements smoothly.
Our Services Include:
- Company Secretarial Services
- Annual Compliance Filing for Private Limited Companies
- ROC Filing Services in Delhi
- Board Meeting Compliance Management
- Statutory Audit & Financial Statement Filing
- DPT-3 Filing and Advisory
For expert guidance, reach out to us at:
admin@twindeskllp.com