Our expert team is here to guide you every step of the way, helping you navigate the complexities of personal finance.
Call ExpertMaintain accounts, MCA and Income Tax compliance for your company with dedicated Accountant and LEDGERS platform.
Navigating compliance can be a complex challenge for private limited companies in India. Adhering to the comprehensive requirements of the Companies Act 2013, including director appointments, shareholder meetings, and other regulatory obligations, is crucial but can often seem overwhelming.
That’s where IndiaFilings steps in. We provide expert guidance and comprehensive solutions tailored to your company’s needs, simplifying the compliance process from registration to ongoing obligations. Our team of specialists is equipped with in-depth knowledge of Indian business laws and regulations, ensuring your company meets company compliance requirements. Whether you are a startup or an established enterprise, IndiaFilings is your partner in simplifying compliance.
Annual compliances are a critical aspect of corporate governance for companies registered in India. Key annual compliances include:
For companies registered in India post-November 2019 with a share capital, securing a Commencement of Business Certificate is a prerequisite before initiating any business activities or exercising borrowing powers. This certificate must be acquired within 180 days of incorporation by filing Form INC-20A.
Failure to obtain this certificate results in penalties, with the company facing a fine of Rs. 50,000 and directors being charged Rs. 1,000 per day for each non-compliance, underscoring the importance of promptly adhering to this regulatory requirement.
The first auditor must be appointed within 30 days of incorporation and ratified by the shareholders during the first Annual General Meeting (AGM). Following the AGM, Form ADT-1 confirming the auditor’s appointment must be filed with the Registrar of Companies (ROC) within 15 days.
The first board meeting should be held within 30 days of incorporation. Subsequently, companies must hold at least four board meetings every year, ensuring that the interval between two meetings is at most 120 days.
Further, the discussion in the meeting needs to be drafted and recorded in the minutes and maintained at the company’s registered office.
A notice should be given seven days in advance about the meeting’s date and purpose.
The first AGM should be conducted within nine months from the closure of the first financial year. For subsequent years, the AGM must be held every year within six months from the end of the financial year, ensuring that the gap between two AGMs is at most 15 months.
AGMs are held for approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc.
The meeting is held during business hours on a day that is not a public holiday. It shall occur at the company’s registration or the city, village, or town in which the registered office is situated.
Private Limited Companies must file annual accounts and returns to the companies’ registrar, disclosing the details of their shareholders, directors, etc.
As a part of the annual compliance for private limited company, the following forms are to be filed with the ROC:
This form is for filing the company’s financial statements and must be submitted within 30 days following the Annual General Meeting (AGM).
Form MGT-7 (Annual returns) must be filed within 60 days of the annual general meeting
This form pertains to changes in the company’s directorship, including appointments and resignations, and must be filed within 30 days of such changes.
Directors are required to submit their KYC details through Form DIR-3 by September 30th each year, provided their Director Identification Number (DIN) was allotted by March 31st of that year and the status is ‘Approved’. Failure to file DIN eKYC results in a penalty of Rs. 5000.
Companies must use this form to report details of deposits and other non-deposit receipts annually by June 30th.
An abridged version covering all required information for small companies under Section 134 must be prepared. It should be authorized by the Chairperson or at least two directors.
Companies must maintain and regularly update various statutory registers and records, including minutes of board meetings and AGMs, books of accounts, financial statements, and files with the ROC.
Company filing refers to submitting various legal forms and documents to the Registrar of Companies (ROC) as required by the Companies Act 2013. Some of the common types of company filings that need to be filed with the MCA are as follows:
Read in detail about the filings for the company .
In India, small businesses can be run without registering, but it is recommended to register the company to obtain certain benefits and to ensure legal compliance. There are several unregistered business structures that small enterprises commonly use:
Starting a business in India requires compliance with various legal requirements, including registering the business, obtaining necessary licenses and permits, and complying with labor and tax laws. Some of the essential legal requirements for starting a business in India are as follows:
Refer to our article to know more about the how legally file a Business.