Annual Compliances for Private Limited Company
Annual compliance is essential for every private limited company to meet the legal requirements under the Companies Act 2013. Companies must hold their Annual General Meeting (AGM) within 30 days of the end of the financial year. For new companies, the first AGM must happen soon after incorporation.
Companies must also file their annual return and annual accounts with the Registrar of Companies (ROC) within 60 days of the AGM. Filing income tax returns on time is equally important to avoid penalties.
Besides annual filing, companies must meet event-based compliance and follow laws like GST, the Factory Act, the Competition Act, and the Protection Act. A Chartered Accountant (CA) or Company Secretary (CS) plays a key role in ensuring all these compliance requirements are met smoothly.
Types of Compliance for a Company Registered in India
Private Limited Compliances can be devided in broad two categories for easy understanding.
Registrar Related Compliance (ROC Compliance)
Compliance for a priavate limited company as per Companies Act, 2013 is generally known as ROC compliance. These ROC compliances are also known as registration related compliance or MCA compliance. ROC compliance includes Form INC-20A, Form ADT-1, Form AOC-4, Form MGT-7A and Form DIR – 3KYC etc. Detailed information about these forms or compliances given below in this blog.
Non-Registrar Related Compliance (Non-ROC Compliance)
Compliance other than ROC compliance are generally known as Non-Registrar compliance. These compliance generally includes GST Compliance, TDS Compliance, ESI Compliance, PF Compliance etc. Detailed information about these compliances given below in this blog.
Registrar Related Compliance for Private Limited Company
We have given below the specific set of compliance that a company has to fulfill post-incorporation.
| Particulars | Compliance | ROC Filing Due Date |
Declaration of Commencement of Business | Form INC-20A is a declaration for commencement of Business | Form INC-20A is filed within 180 days of the date of incorporation of the company |
Form ADT-1 Appointment of Auditor | First Auditor is appointed by the Board of Directors in Board Meeting and after First Auditor appointment, subsequent Auditor is appointed in the Annual General Meeting (AGM) of the company. | First Auditor has to be appointed within 30 days from the date of Incorporation. For Auditor Appointed in the AGM this form is to be filed within 15 days of the AGM |
Form DIR-3 KYC Director DIN KYC | Every person having DIN has to file DIN KYC every year irrespective of whether he is director or not in a company. | By 30th September of each year. |
Holding AGM | AGM stands for Annual General Meeting. As name suggest, every company is require to hold AGM every year. | Generally 30th September of every year. |
Form AOC-4 Financial Statements | Audited Financial Statements is filed to ROC online | Within 30 days of holding AGM |
Form MGT-7A Annual Returns for Small Company / OPC | This is the annual return having detailed information regarding shareholding of the company. | Every company is required to file its annual return Within 60 days of the AGM |
Form DPT-3 Return of Loan/Deposits | Every company needs to file this form furnishing information about deposits and/or loan or money other than deposits payables. | Within 30th June every year |
Form DIR-12 Appointment / Resignation of Directors | The details of appointment/ resignation of directors, if any, along with their consent to act as directors or resignation letter | Within 30 days of appointment / Resignation |
| Holding Board Meetings | Holding Board Meetings is mentioned in the Companies Act, 2013. First Meeting due date and subsequent meeting guidline is mentioned in the Act. | First meeting within 30 days of incorporation. Subsequent meetings: Minimum gap |
| Maintenance of Statutory Registers and Books of Accounts | Statutory Registers/Records such as;
| These Statutory Registers/Records are to be maintianed regularly and needs to be updated from time to time. |
Above mentioned list only contains the generally applicable compliance.
Non-Registrar Related Compliance for Private Limited Company
A checklist of Non-Registrar compliance are given below;
| Particulars | Compliance | Due Date |
| Accounting | Recording of Sales, Purchase, Expenses, Payment & Receipts in the books of accounts of the company. | Generally Accounting is done on daily/weekly/montly basis. |
| Goods and Services Tax (GST) Compliance | GSTR-1 Filing | 11th of Each Month |
| GSTR-3B Filing | 20th of Each Month | |
| GSTR-9 Filing | 31st December of subsequent financial year | |
| GSTR-9C Filing | 31st December of subsequent financial year | |
| TDS Compliance | Monthly Payment of TDS | Within 7 days of each month and by 30th April in case of March TDS liability. |
| Quarterly TDS Return Filing | Within 30 days of the month following the quarter. | |
| Form 16/16A Generation | 15th of the month following the due date for the quarterly TDS return | |
| PF Compliance | Payment of PF Liability | Within 15 days of each month. |
| ESI Compliance | Payment of ESI Liability | Within 15 days of each month. |
What are the Benefits of Private Limited Company Compliance in India?
- Legal Protection: Staying compliant helps the company avoid penalties, fines, and legal disputes, ensuring smooth operations.
- Good Reputation: Regular compliance enhances the company’s credibility and trust among investors, clients, and stakeholders.
- Easier Access to Funding: Proper compliance makes it easier to attract investments from banks, venture capitalists, and other financial institutions.
- Business Growth: A compliant company is more likely to gain government approvals, contracts, and opportunities for expansion.
- Transparency and Accountability: Filing annual returns and maintaining proper records increases transparency and builds confidence among stakeholders.
- Tax Benefits: Timely filing of income tax returns and adherence to tax laws helps in claiming deductions and avoiding interest or penalties.
- Smooth Operations: Following compliance requirements ensures the company operates within legal frameworks, avoiding disruptions in business activities.
- Attracting Talent: A compliant company reflects professionalism, making it attractive to skilled employees and top talent.
- Avoiding Legal Actions: Compliance with laws like the Companies Act 2013, GST, and other regulatory requirements helps the company avoid unnecessary legal issues.
By maintaining compliance, a private limited company ensures its long-term sustainability, legal safety, and opportunities for growth in the competitive business environment.
What is the Cost of Annual Compliance for Private Limited Company?
The cost of annual compliance for a private limited company in India depends on various factors, such as the company’s size, turnover, and the services required. Below is a breakdown of the typical costs involved:
- Government Filing Fees:
- Filing fees for forms submitted to the Registrar of Companies (ROC) depend on the company’s authorized capital and the number of filings.
- Typically, ROC filing fees can range from ₹500 to ₹5,000 per form.
- Professional Fees:
- Engaging professionals like company secretaries, chartered accountants, or compliance consultants to handle filings, audits, and returns.
- Professional fees can vary but usually start at ₹10,000 to ₹30,000 per year.
- Auditor Fees:
- As per the Companies Act, every private limited company must have its accounts audited annually by a certified auditor.
- Auditor fees typically range from ₹15,000 to ₹50,000, depending on the company’s size and complexity.
- Income Tax Filing:
- Filing income tax returns and complying with tax audits, if applicable, may cost between ₹5,000 to ₹15,000 annually.
- Event-Based Compliance Costs:
- Costs for event-based compliance, like changes in directors, share transfers, or amendments in the Memorandum and Articles of Association (MOA & AOA), vary depending on the complexity of the event.
- These costs can range from ₹2,000 to ₹20,000 per event.
- Miscellaneous Costs:
- Expenses for maintaining statutory registers, minute books, and other documentation.
- Approximate costs are around ₹2,000 to ₹5,000 per year.
Total Cost Estimate
On average, the annual compliance cost for a small or medium-sized private limited company ranges between ₹25,000 to ₹1,00,000 per year. However, for larger companies or those with higher turnover, costs can go beyond this range.
Investing in annual compliance ensures legal safety, operational efficiency, and a good reputation, which outweighs the costs in the long run.
Frequently Asked Questions (FAQs)
Annual compliance refers to the mandatory legal compliance tasks that every private limited company must fulfill, such as filing the GST, TDS, Income Tax and ROC compliance such as annual return, maintaining annual accounts and returns, and conducting the Annual General Meeting (AGM).ec ullamcorper mattis, pulvinar dapibus leo.
Yes, ROC compliance for private limited companies is mandatory. Companies must file their annual financial statements and annual returns with the Registrar of Companies (ROC) within the specified deadlines.
The first Annual General Meeting must be conducted within nine months of incorporation.
If a private limited company fails to meet its compliance obligations, it may face penalties, fines, or even the suspension of its company status by the regulatory authorities.Content
A Pvt Ltd company must complete several compliance tasks, including:
- Holding the Annual General Meeting.
- Filing annual accounts and returns with the ROC.
- Ensuring compliance with various regulatory assessments such as GST, tax filings, and other compliance obligations.
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The cost of annual compliance depends on the company’s size, annual turnover, and the complexity of compliance requirements. On average, it can range between ₹25,000 to ₹1,00,000 per year.
Yes, a private limited company can apply to the Registrar of Companies (ROC) for an extension if it cannot file its annual returns or annual financial statements within the specified due dates.
A compliance checklist helps ensure that all compliance tasks, such as filing forms, maintaining registers, and meeting legal deadlines, are completed efficiently to avoid penalties.
The benefits of annual compliance include:
- Maintaining limited liability protection.
- Enhancing the company’s reputation and credibility.
- Avoiding penalties for non-compliance.
- Facilitating smoother business operations and access to funding.
Yes, companies that fail to file annual returns on time may incur penalties, late fees, and even legal actions from the regulatory authorities.ent
Yes, appointing a statutory auditor is part of the annual compliance process and is mandatory for every private limited company to ensure proper financial reporting.
Yes, audited financial statements are required as part of the annual filing for private limited companies to ensure accuracy and compliance with legal requirements.
Companies must maintain:
- Statutory registers.
- Minutes of board and general meetings.
- Financial statements and audit reports.
These are critical for fulfilling compliance obligations.
In certain cases, a private limited company can apply for exemptions, but this depends on the type of compliance and regulatory guidelines.
Private companies must report their annual accounts and returns, income tax filings, and any significant changes in company operations or structure as part of their various compliances.
To ensure smooth compliance:
- Follow a detailed compliance checklist.
- Engage a company secretary or compliance expert.
- Use digital tools for timely reminders and filings.
