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OPC OVERVIEW
PRIVATE LIMITED COMPANY / OPC OVERVIEW
When operating a firm, company compliance is a crucial factor that must be considered. To avoid penalties, it is necessary to follow all ROC compliance requirements. The Companies Act of 2013 must be upheld annually by all private limited companies, one-person businesses, limited corporations, and section 8 companies. The total turnover or the amount of capital involved typically has little bearing on these corporate compliances. For registered private limited companies, ROC compliance is required. Failure to meet the annual compliance requirements for private limited firms may result in serious action being taken against the company.
It must be kept under check by routinely filing with the Ministry of Corporate Affairs to maintain its active status (MCA). For each fiscal year, every private firm is required to submit an annual return and audited financial reports to MCA. Whether the turnover is zero or in crores, the Registrar of Companies filing is still required. Every certified firm must submit annual compliances for private limited, regardless of how many businesses are operated. Maintaining all the yearly compliances for private limited enterprises is quite tricky. Taxkey is available to assist with annual filings for companies and provide details on corporate compliances.
ANNUAL COMPLIANCES FOR PRIVATE LIMITED COMPANY
The annual compliance of private limited corporations should be regarded seriously, much like other enterprises. A company’s compliance documents must be submitted on time or earlier. Here are a few requirements for private limited companies that you should pay attention to.
Business Commencement Certificate
Within 180 days of the company’s incorporation, a business commencement certificate is required for annual compliance for private limited businesses. This applies to companies with a share capital registered after November 2019. Penalties for failing to adhere to this yearly compliance: The Company will be fined INR 50000, and the director will be responsible for paying INR 1,000 each day the commencement certificate is late.
Appointing an Auditor
As required by ROC compliance, an auditor must be appointed within 30 days of establishment. All of this information should be included in a company’s yearly file. Penalties for failing to adhere to this yearly compliance: The penalty for breaking this private limited company compliance is INR 300 per month. The corporation will then be prohibited from operating until an auditor has been appointed.
Filing ITR returns
This annual compliance for private limited firms is essential. Online income tax returns must be filed annually on or before the deadline.
Submitting MCA Form AOC-4
To comply with the annual compliance, private limited enterprises must submit form AOC 4 to the MCA. Penalties for failing to adhere to this yearly compliance: A fine of INR 200 will be assessed for each day this form is not submitted.
Filing MCA Form MGT-7
The MCA form MGT-7 must be submitted annually on or before December 31 for a private limited company to comply.
Consequences for breaking this annual compliance requirement: Defaulters are forced to pay a 200 fine for each day they are in default during the entire duration.
Filing for DINeKYC.
Every private limited company is required by ROC compliance to have a director. Having a Director Identification Number (DIN) is necessary to complete all tasks without trouble. The company’s director must submit DIN eKYC within the anticipated time frame. The director must pay a fine of INR 5000 in the event that they default or are late in adhering to this annual compliance.
Hold Annual General Meetings (AGM)
This is essential for private limited firms’ yearly compliance. All AGM-related information should be included in a company’s annual filing. Under ROC compliance, an AGM must be held within six months of the conclusion of the fiscal year.
Directors Report
Compliance for private companies entails the timely submission of director reports along with the ROC and MCA. As required by Section 134, all the information must be submitted without fail.
BENEFITS OF ANNUAL COMPLIANCE
Recognition
The Private Limited Company and its partners’ public image will improve due to compliance with the Ministry of Corporate Affairs and the Registrar of Companies standards. A Private Limited Corporation might raise its compliance standards through this approach. More investors will be eager to participate when a Private Limited Corporation complies with the law.
Compliance
The Private Limited Corporation would be exempt from all compliance obligations if all compliances were filed within a specific time frame. A Private Limited Corporation can achieve its goals by taking this into account.
Reduces Troubles
The Private Limited Companies would have less work to do regarding compliance requirements if they complied with the authorities’ demands. The development of the Private Limited Business may suffer if compliances are not tracked down or filed by the Private Limited Company. Therefore, the partners of the Private Limited Corporation must adhere to all compliance-related standards.
CHECKLIST OF ANNUAL COMPLIANCE FOR PRIVATE COMPANY
A new company working as a private limited corporation requires adhering to compliance standards set forth by several statutes and other governmental agencies. They include, but are not limited to, submitting tax and other returns on time, hosting board meetings and other events, keeping authorized books and accounts, etc.
- Payment of periodic dues – GST Liability, TDS & TCS
- Monthly/Quarterly- GST Returns
- Quarterly-TDS Returns
- Non-Registrar compliance of periodic returns – Monthly, quarterly, annual returns- GST, TDS, etc.
- Filing of Income Tax Returns rust
- Filing of Tax Audit Report
- Periodic evaluation of advance tax liability and payment of advance tax.
- Administrative Assessment of trade under different acts of law (E.g., Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)
DOCUMENTS REQUIRED
- Certificate of Incorporation
- PAN Card
- MOA – AOA of Private Company
- Audited Financial Statements
- An independent auditor must audit Financial Statements
- Audit & Board Report
- Independent Auditor’s report and Board report must be concerned
- DSC of Director
IMPORTANT FORMS
Actions |
Form No |
Phase Limit |
|---|---|---|
|
Change in registered office |
INC-22 |
Within 15 days from the date of such change |
|
Change in Directors or KMP |
DIR-12 |
Within 30 Days of such change |
|
Increase in Authorized Share capital |
SH-7 |
Within 30 days of passing Ordinary Resolution |
|
Filing of resolution and agreements |
MGT-14 |
Within 30 days from date of passing resolution |
|
Increase in Paid up share capital (Issue of security) |
PAS-3 |
Within fifteen days from the date of the allotment |
|
Change in secured borrowing (Creation, modification and satisfaction of charge) |
CHG-1 |
All types of Charges within 30 days of its creation |
|
Application for KYC of Directors |
DIR-3 KYC |
On or before 30th April of immediate next Financial Year (Annual Compliance) |
|
ACTIVE (Active Company Tagging Identities and Verification) |
INC-22A |
On or before 25th April (Applicable to all companies registered before 31st December 2017) |
|
Declaration of Commencement of Business |
INC-20A |
Within a period of 180 days of the date of incorporation of the company. (Applicable to companies incorporated after 2nd November, 2018.) |
|
Change of name of company |
INC-24 |
Within 60 days from the date of applying reservation of name in INC-1 |
|
Conversion of company |
INC-27 |
- |
|
Removal of Auditor before Expiry |
ADT-2 |
Within 30 days from date of passing SR |
|
Report for Disqualification of the Director |
DIR-9 |
To be filed by company within 30 days of such disqualification |
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