Sticking to the Compliances that have been put up by the government is very important to adhere to. The Annual Compliance for Startups helps to ensure that the business stays in the existence for a much longer period.
The experts believe that following and keeping up with all the compliances are very important. As a result, it helps in the following ways: –
- getting good funds from the government,
- one can apply for government tenders
- enable being marked as a ‘Dormant Company’
- and it also helps to avoid being shut down or closed
Here, in this blog, you will get to know about the checklist Annual Compliance for Startup Company that would help you in maintaining the Compliance that is mandated for a startup to be filled in.
The Checklist explained below is as follows:
#1 Filing of Income Tax
Here, is the first Annual Compliance in our list of Compliances for Private Limited Company is Income Tax Filing. As in India, the financial year starts from 1st April to 31st March. When this financial year ends every Company and Start-up individual is required to pay Income tax to file an Income Tax Return.
Startup Companies are subjected to filing for Income tax no matter whether they have made any profit or not for the passing financial year. One has to keep in mind that as soon as the financial year ends, one needs to gather all the bills, vouchers, and all other documents that depict financial transactions.
#2 License Renewal
If planning to start a business in India, then they are needed to obtain a License all within 30 days of commencing a business startup. Annual compliances for pvt ltd company require a license first to get all the required business licenses. And if you have already acquired the business license then you must either renew it or follow the license expiry date.
#3 GST RETURN
Every company or individual selling goods and services in India is required to obtain GST Registration and file GST returns, even if no sales are made during the month or year. If your startup sells products and services in India, you should obtain a GST registration. If you currently have a GST registration, you must complete GST returns on a monthly and annual basis. Private Limited Company GST plays a significant role in coming under the government authorization.
#4 Compliance with Machinery
If your startup is a food business, a medical business, a transportation business, a construction business, or any other business that uses equipment, it is your responsibility to check and maintain the equipment on a monthly, quarterly, or annual basis to ensure that it is in proper working order.
In some businesses, it is mandatory to check and maintain the equipment. Hire a Chartered Accountant firm to take care of your Annual Compliances so that you have no intervention from the government side in running your Private Limited Company.
#5 Internal Company Compliance
You must audit your financial statements on a monthly and annual basis. You must have an annual general meeting, do a business analysis, and discuss the results of the analysis with Coco, CF, Directors, Managers, and Company Staff, among other things.
Check and update company policies and procedures. Follow-up and be informed about any changes in business and compliance law. Always keep your cybersecurity up to date, and follow data protection rules. So, this is also a very important component of a Private Limited Company’s Annual Compliance.
Note: Hope this information is beneficial to Indian start-ups. If you have any questions, please feel free to reach us through our website or call us directly. Annual Compliance for Startup Company needs a lot of attention in the starting a Private Limited Company but after some time all flows with proper management.