Every private limited must file an annual return and audited financial reports with the Ministry of Corporate Affairs (MCA). It should be filed for every fiscal year. For every certified private company, it is crucial to file annual compliance, whether the business is undertaken or not.
Understand the common annual compliance obligations for Private Limited Companies:
- Annual General Meeting (AGM): Organize a shareholder Annual General Meeting within a predetermined time frame following the end of the fiscal year (often within six months). Organize a shareholder Annual General Meeting within a predetermined time frame following the end of the fiscal year (often within six months).
- Financial statements: In line with the relevant accounting standards, create financial statements, including a balance sheet, profit and loss statement (income statement), and cash flow statement. Financial statements, the director's report, and other items on the agenda are discussed and approved. If required by law, make sure the statements are audited by a professional auditor.
- Annual return filings: Submit the yearly report to the Registrar of Companies (ROC) or other appropriate regulatory body. Details on shareholders, directors, and the company's financial situation are often included in this return.
- Income Tax Return (ITR): We help you file income tax returns and ensure accurate reporting of tax liabilities, income, and expenses.
- Statutory register and records: Maintain and update statutory records such as the register of directors, record of charges, and other relevant records as prescribed by the Companies Act.
- Board meetings and resolutions: Hold periodic board meetings, and document important board decisions taken during the fiscal year
- Compliance with Corporate Governance: Private companies must comply with corporate governance guidelines and regulations. To ensure transparency and accurate disclosure in company operations.
- Tax compliance: Comply with all tax-related obligations including monthly or quarterly tax returns, adhering to any tax incentives and deductions.
- Renewal of licenses and permits: It also includes a renewal of all licenses, permits, and registrations required for the business.
- It’s good to maintain an annual compliance calendar to track and ensure the timely completion of annual filings every year.
Documents required for Annual Filing of Private Limited Company:
- Certificate of Incorporation
- PAN card
- MOA & AOA of the company
- Audited financial statements
- Audit reports
- DSC of the director
What are the advantages of annual filing and compliance?-
- Strong company credibility: The regularity of annual compliance plays a crucial role in representing the credibility of the company. On-time or regular annual filing boosts the organization’s credibility, captures more audience, and assists in obtaining loan approval and government tenders.
- Attract more investors: The investors look for regularity in filing the annual returns on the MCA portal. Investors always favor companies with regular and consistent compliance. The regularity of annual compliance for private company bring more investors and maintain stable financial records.
- Avoid penalties and maintain active status: To avoid penalties, it’s important to file annual compliance regularly. If you fail to file annual compliance, the status of your company can be reduced or declined. This can also lead to the removal of the company from the ROC.
Darshan Corporate Support in Annual compliance and filing:
- We are the leading CA firm in Delhi since we aim to provide businesses and individuals with a wide range of financial and accounting services. We help businesses manage their finances efficiently, ensure tax law compliance, and provide effective financial insights.
- It’s vital to file an annual compliance since failure to file annual compliance can lead to fines, penalties, and even the dissolution of the firm. We operate a smooth operation and legal standing for your private limited firm.
- We attentively listen to your queries and provide comprehensive support 24*7. Reach out to us today and get your annual filings done with no hassle.
You need to know before begin everything.
The legal needs to start a public limited firm are stated below:
- Minimum three directors
- Minimum 5 lakhs shared capital
- At least 7 shareholders are necessary
Every private limited firm must file annual compliance to ROC.
From July 2018, companies missing to file annual compliance have been charged Rs. 100 each day for the delay. For non-compliance or failure, the penalty can be levied on both the company and the directors. The penalty can also lead to imprisonment.
Every private company whose paid-up capital minimum of 5 crores needs to get their annual return signed by a company secretary.