Annual Compliances for Private Limited Company

Annual Compliances for Private Limited Company

Annual Compliances for Private Limited Company

Annual Compliances for Private Limited Company – A private company is a legal entity with its own identity that must keep its active status by filing documents with the MCA regularly. Every financial year, every company must file an annual return and audited financial accounts with the MCA. The filing of the RoC is required regardless of the turnover, whether it is zero or in crores.

So, whether a single transaction is undertaken or none, annual compliances for the private limited are mandatory for every registered company. Here, to fill out both the forms to report the activities and financial date for the concerned financial year are a very important aspect. 

The date of the Annual General Meeting determines the due date for a company’s annual filing. Continuous failure may result in the company’s name being removed from the RoC register, as well as the directors being disqualified. It has also been noted that MCA has taken active and courageous steps to address any such failures.

Advantages of Annual Compliances for Private Limited Company

  • Increasing the Credibility of the Company 

The Compliance of Law is the foremost and mandatory for every type of business. Here, the date of the company’s annual return filing is displayed on the Master Data as on the MCA portal. The government tenders, loan approval, and the regularity in compliance are all the major specifications to measure the credibility of a running organization. 

  • Attract the Investors 

So, while pulling the funds for any company from the investors, they require all the financial records and dates before sealing the ‘proposal’. 

Investors can either contact the company directly or use the MCA site to review the financial information. Investors also prefer organizations that have a good track record of compliance.

  • Keep your Active Status to avoid fines

Failure to file the return regularly puts the corporation in default, resulting in hefty fines. It’s also possible that the corporation will be deemed defunct or deleted from the RoC. The directors in question have also been disqualified and prevented from being appointed in the future. Even since July 2018, an extra fee of ₹100 will be charged for each day of delay till the date of filing.

Know More: Annual Compliance for Startups – Checklist for Startups

Required Documents for the Annual Filing are: 

#Incorporation Document 

-the documents needed are like PAN Card, Certificate of Incorporation, and MoA as well as AoA of the Private Company. 

#Audited Financial Statements 

-The financial auditor’s report and Board report must be provided

Financial Statements must be audited by an independent auditor.

#DSC of the Director 

-Valid and the active DSC is one of the directors must be submitted. 

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What Are the Due Dates of Annual Compliances for Pvt Ltd Company?

AOC-4 –Within 30 days from the date of AGM 

MGT-7 – Within 60 days from the date of AGM

Fulfil compliances in 3 easy steps 

  1. Follow Quick Process 
  • Upload required documents 
  • spare less than 10 mins to fill the online ‘questionnaire’
  • make quick payments through our secured payment gateways
  • Alonika Experts are here to help
  • drafting of required documents for filing 
  • assigned relationship manager 
  • online filing of financial statements and other documents 
  • online filing of annual return of company 
  • Annual Compliance is DONE! 
  • It hardly takes 5 working days

Note: (Subjected to government processing time)

Procedure for Company Annual Filing

#1 Day Collection 

  • starting with the required documents
  • discussion and collection of basic information
  • decide the due dates of ROC filing for Private Limited Company

#2-4 Days Preparation 

  • attachment of the necessary docs
  • drafting of required docs

#5 Days onwards Filing 

  • Filing of MGT-7 (Annual Returns)
  • Filling of AOC-4 (Financial Statements)
  • Explore Annual Compliance for Private Limited Company

Know more: Annual compliance checklist for startups & Private Limited Company

FAQs- Frequently Asked Questions 

Q1. How does the Annual Filing be so important for the companies?

Ans. Yes, all registered companies must comply with the RoC for Private Limited Companies. The business must meet the annual compliance requirement, regardless of total turnover or capital investment. Since the company’s first fiscal year, the annual compliance is due following the AGM. 

Q2. What is the penalty if a Private Limited Company fails to file its annual report?

Ans. Since July 2018, businesses that don’t adhere to the requirements for Private Limited are subject to a daily fee of ₹100 until the actual filing date. The maximum amount of an additional cost is undefined. For repeated failure, penalties can be imposed on both the firm and the directors, including imprisonment, in addition to the additional Government charge.

Q3. Does statutory auditor fall under annual compliance?

Ans. Any company can opt to appoint a statutory auditor and that could be for a long five consecutive years or say till the conclusion of the next AGM. So, therefore an appointment of the statutory auditor cannot be considered as a part of annual compliance in any way. 

Q4. Which is the form filed for the appointment of the Statutory Auditor? 

Ans. The form ADT-1 is required to be filed for the appointment of the Statutory Auditor. 

Q5. Do directors need to sign directors’ reports if there are no operations in the company?

Ans. According to the Companies Act of 2013, every financial year, the firm must file an annual return with the MCA along with a signed copy of the director’s report. For the form MGT-7, the Director Report is regarded as an attachment.

Q6. What form is a supplemental file to the company’s director report?

Ans. The company’s director report includes an attachment, MGT-9, which is an adaptation of MGT-7 and addresses the following:

1. Registration information, including CIN, date of establishment, name of the business, and registered office address

2. The company’s primary line of business

3. Holding, affiliated, and subsidiary businesses

4. Shareholding patterns. 

5. The amount of debt the organization has.

6. Compensation for managing directors, directors, and/or managers, as well as other important managerial staff.

7. Penalties, punishment, and aggravation of the offense.

Q7. How should the MCA be informed about a company’s share transfer or transmission?

Ans. According to the expert, such action can be put through by filing MGT-7 by the company.