ANNUAL COMPLIANCES FOR PRIVATE LIMITED COMPANY

A private limited company that has been incorporated in India should make sure the compliances concerning the Companies Act, 2013 are adequately filed. The word compliance represent the ability to comply with orders, set of rules, or requests.

The Companies Act, 2013 regulates the appointment, qualification, remuneration, and retirement of the Company's Directors and other particulars such as conducting board meetings and shareholder meetings.

The ROC compliance for registered Private Limited Companies is mandatory. Regardless of the total turnover or the capital amount, the company must comply with the annual compliance requirement.

All companies registered in India such as private limited company, One Person Company, limited company, and section 8 company need to sustain the annual compliances like annual returns and income tax return each year. Company Registration happens to be the most popular form of starting a business; various compliances need to be followed once the business is incorporated.

COMPLIANCES TO BE MAINTAINED BY THE PRIVATE LIMITED COMPANY

Following are some mandatory compliance required to file for the private limited company:

COMPLIANCE	DESCRIPTION
Commencement of business ( within 180 days)	For companies registered in India after November 2019, having a share capital, it is mandatory to obtain a commencement of business certificate before commencing any business or exercising the borrowing powers. The commencement of business certificate should be obtained within 180 days of incorporating a Company. In case the individual fails to apply for this certificate within the prescribed time, there is a penalty of Rs. 50,000 for the company Rs. 1000 per day for the directors for each day of default.
Auditor Appointment	All registered Indian Companies should appoint a Statutory auditor within 30 days of incorporation. If the company fails to appoint an auditor within the 30 days of its incorporation, the company won't be allowed to commence business. Also, there is a penalty of Rs. 300 per month.
Income Tax Return	Income tax returns are required to be filed on or before 30th September for the Financial year.
Form AOC-4	The registered private limited companies must file Form AOC-4 on or before 30th November for the Financial year. Failure to file AOC-4 will attract a penalty of Rs. 200 per day of default or delay.
Form MGT-7	It is necessary to file form MGT-7 on or before 31st December for Financial year. If fail to file MGT-7 there will be a penalty of Rs.200 Per day of default or delay.
DIN eKYC	All the directors of the company should filed form for DIN eKYC or DIR-3 eKYC. In DIR-3 eKYC, the Director should provide a mobile number and a personal email address. There's a penalty of Rs. 5000 in case of failure to file DIN eKYC.
Hold Annual General Meeting	For a private limited company, it is necessary to hold an annual general meeting once a year. Companies are required to hold their AGM within six months from closing the Financial year.
Director's report	Preparation of the Directors report should be done with all the necessary information required under Section 134.

STATUTORY AUDIT COMPLIANCES

The statutory audit compliances are carried to ascertain whether an organization provides true details of the financial position by examining the bank balances, bookkeeping records, and financial transactions.

For this the company needs to appoint a statutory auditor. Then the auditors of the company will finalize the annual accounts of the company.

ANNUAL ROC FILINGS

The Private Limited Companies should file the annual returns disclosing the details of its shareholders, directors, etc. to the companies' registrar.

As a part of the annual filing, the bellow forms are to be filed with the registrar of companies:

FORM MGT-7 (Annual returns), It should be filed within 60 days of holding the annual general meeting.
FORM AOC-4 (Financial statements), It is to be filed by a private limited company within 30 days with the balance sheet and the statement of profit and loss account and Director Report of the company.

ANNUAL GENERAL MEETING

It is mandatory to hold a meeting of the shareholders once every year within six months from the financial year's closing.

AGMs are held for the approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc.

The meeting should be held during business hours on a day that is not a public holiday. It should be at the registered place of the company.

BOARD MEETING

It is mandatory to conduct the first meeting of the Board of Directors of a company within the 30 days of incorporation of the company.

A company should held four board meetings every three months in which a minimum of 2 directors or 1/3 rd of the total number of directors, whichever is greater, are needed to be present.

Further, the meeting's discussion needs to be drafted and recorded in the minutes of the meeting and it should be maintained at the company's registered office.

A notice should be intimidated before seven days about the date and the purpose of the meeting.

DIRECTORS REPORT

The Director has to disclose the details about his directorship in any other companies every year. The directors have to give a declaration in writing to the company every year.

INCOME TAX COMPLIANCES

Companies need to make quarterly payment of the advance tax

Filing of the Income Tax returns

Tax audit is mandatory in case the turnover or a gross receipt of a business exceeds Rs. One Crore in the previous year relevant to the assessment year

Companies need to file the Tax Audit report

OTHER EVENT-BASED COMPLIANCES

Besides the annual filings, there is much other compliance that needs to be fulfilling on occurrence of any event in the company. Below are some examples of compliances:

Change in the authorized and the paid-up capital of the company
Allotment of new shares and transfer of shares
Landing loans to other companies
Providing loans to the directors of the company
Appointment of managing or whole-time Director
Changes in the authorized signatories of a bank account at the time of bank account opening or closing
Appointment of Auditor
Change of the statutory auditors of the company
Amendment of Memorandum of Association (MOA)
Amendment of Article of Association (AOA)

It is mandatory to file relevant forms with the registrar for all such events within a specific time period. In case of delay on filing any form, additional fees or penalties might be levied. Therefore, it is necessary to meet such compliances on time.

NON-COMPLIANCE

If a company fails to comply with the rules and the regulations of the Companies Act, then the company and its members who are at default shall be punishable with a fine for the period of which the default is continuing.

In case there is any delay in annual filing, one needs to pay the additional charges. Therefore, it is always better to fulfill the compliances on time.