Annual Compliance for Private Limited Company in Mumbai

Annual Compliance for Private Limited Company in Mumbai

Annual Compliance for Private Limited Company in Mumbai
Overview
Documents required for annual compliance in Mumbai
Mandatory Compliances for the private limited company in Mumbai
Event-based Compliances
Advantages of annual compliance of the private limited company in Mumbai
Keeping Statutory Registers Up to Date

Annual Compliance for Private Limited Company in Mumbai

A Private Limited Company enjoys a distinct identity from its directors. A private limited company is mandatory to submit annual compliance with the Ministry of Corporate Affairs (MCA). Compliances of Private Limited Company is a parliamentary act that enables all legally operating firms to carry out their commercial operations while adhering to certain rules and regulations established by the Companies Act 2013. The government has the authority to remove the names of companies and their directories that are not following the guidelines. The different strategies used by corporate sectors to evade taxes frequently land them in serious trouble. This article will go into further detail regarding the requirements for annual compliance of the Private limited company in Mumbai.

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Annual Compliance is divided into two categories: Mandatory Compliance and Event-Based Compliance

Mandatory Compliances

Each Private Limited Company is expected to complete certain statutory secretarial compliance files or compliances as may be necessary by the Registrar of Companies (ROC) within the allotted timeframe to avoid penalties. The list of requirements for a private limited company is as follows:

  • Appointment of an Auditor: The First Auditor must be appointed in the time of 30 days from the date of incorporation. The Auditor must be appointed for 5 years. The Register of Companies (ROC) must be informed of the appointment of a new auditor within 15 days from the date of the AGM.
  • Company Secretary’s Appointment:  A private limited Company having paid-up share capital of Rs. 5 crores more is required to appoint whole time Company Secretary as under Section 203 of the Companies Act, 2013
  • Issue certificate of Business Commencement: Every Company should obtain a commencement of Business certificate within 180 days of their incorporation date. If the company does comply, a fine of Rs 50,000 may be imposed against it, and the company’s directors may also be held responsible for a fine of Rs 1000.                                                                  
  • Annual General Meeting:  The company must hold an Annual General Meeting (AGM), which should take place at the company’s registered office six months before the end of the fiscal year. An AGM is held to review and approve financial accounts, the appointment of the Auditor, and other related issues.
  • Board Meetings: Under section 173 of the companies act addresses the Board Meetings. Every Pvt company should hold board meetings within 180 days of the incorporation. Each year, four board meetings should be held and the gap between the two meetings should not be more than 120 days.
  • Maintain Statutory Register: In the companies act 2013, it is mandatory for the company should maintain the statutory register at their registered office. It includes AGM, Board meetings, register of debentures holders, etc.
  • Filing of Annual Returns: Under section 92 of the 2013 Companies Act, every private company should prepare its annual return with the  Registrar of Companies (ROC). It should be completed within 60 days of the Annual General Meeting.
  • Financial Statement’s Filing: Under section 134 of the Companies Act 2013, Every Private Company should file a financial statement within 30 days of the Annual General Meeting with the Registrar of Companies. A board will prepare the report which is based on the Financial Statement of the company and it submit to the AGM. The chairperson of the company signed the Financial Statement after the approval of the Board of Directors.
  • Statutory Accounts Audit: Every Company is required to prepare its accounts and have them audited by a Chartered Accountant after the Financial Year. The auditor is required to deliver an audit report and the verified financial statements to the registrar.

Director’s Disclosure: Every private company should fill the Form MBP-1 and it should be kept in the records of the company. The form includes: the director’s first meeting or the first meeting of the board in each financial year should disclosure their interest, whenever there is a change in disclosures.

Event-Based Compliances:

Event-based compliances are those that are caused by specific events, such as changes to the directors, the registered office, the authorized share capital, etc. Therefore, the occurrence of such events must be tracked and compliances are met on time to prevent penalties. The following list of Event-based compliances includes the time limit as well as some of them:

EventsForm No.Time Limit
Modification of Registered AddressINC-22Within 15 days after the change’s date.
Changes to the Board of Directors or KMPDIR-12within 30 days of the change
Capitalization of Authorized Shares risingSH-7Within 30 days of passing Ordinary Resolution
Resolution and Agreements FilingMGT-14Within 30 days from the date of passing the resolution
Paid up Share Capital IncreasePAS-3Within fifteen days from the date of the allotment
Application for Directors’ KYCDIR-3 KYCOn or before 30th September of immediate next Financial Year (Annual Compliance)
ACTIVE( Active Company Tagging Identities and Verification)INC-22AOn or before 25th April 2019 (Applicable to all companies registered before 31st December 2017)

Consequences of Non-Compliance: When the Company will not follow any of the regulatory compliances then the company and its officers shall be punished and a heavy fine imposed on them.

Benefits of Annual Compliance

  • Help to build Reputation of the Company: When the Private Limited Company will comply the demands of the Registrar of Companies and the Ministry of Corporate Affairs, its image will improve in the market. When the private company will follow all the rules, the reputation of the company will increase and more investors will eager to participate in it.
  • Fill the Compliance timely and avoid penalties: If the Private Limited Company will fill all the compliance within the particular time, they will not impose any penalty. This will increase the credibility in the market
  • Fewer Burdens:  When the company will complete all the compliance, it would face lower burdens. The investors will be attracted because of the work commitment that has been finished timely.

Required Documents for the Annual Compliance in Mumbai  For Private Limited Company:

  • Bank Statement
  • Director’s DSC
  • PAN Card
  • Incorporation Certificate
  • MOA- AOA of Private Company
  • Audited of Financial Statement.
  • Audit Report and Board Report.

We Support you with company Compliance filling in Mumbai

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  • After reviewing the company’s financial statements, our team will finalize the company’s balance sheet and profit & loss accounts.
  • Our professional team will provide support for the Statutory audit of the company.
  • You can ask any quires or information from our experts.
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