{"id":2152,"date":"2020-01-18T09:16:59","date_gmt":"2020-01-18T09:16:59","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=2152"},"modified":"2021-01-22T15:41:37","modified_gmt":"2021-01-22T10:11:37","slug":"annual-compliance-checklist-for-private-limited-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/","title":{"rendered":"Annual Compliance Checklist for Private Limited Company"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Every Private Limited Company must file various forms and documents on an annual basis as per the Companies Act, 2013 and Companies Incorporation Rules, 2014. A private Limited Company is a separate legal entity with a benefit of limited liability to its shareholders. A Private Limited Company must stay away from legal disputes that would tarnish its image and name of the company. There will be no legal fines or penalties if the company adheres to the compliance procedures.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#What_is_Annual_Compliance_of_Private_Limited_Company\" >What is Annual Compliance of  Private Limited Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#What_is_the_mandatory_Annual_Compliance_for_Private_Limited_Company\" >What is the mandatory Annual Compliance for Private Limited Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#What_are_the_benefits_of_Annual_Compliance\" >What are the benefits of Annual Compliance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#What_are_the_information_and_documents_needed_for_Annual_Filing_of_Company\" >What are the information and documents needed for Annual Filing of Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#Contact_Corpbiz_for_Easy_Annual_Compliance_for_Private_Limited_Company\" >Contact Corpbiz for Easy Annual Compliance for Private Limited Company!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Annual_Compliance_of_Private_Limited_Company\"><\/span>What is Annual Compliance of  Private Limited Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Private Limited Company enjoys a separate identity which requires maintaining its active status through the regular annual filing with the Ministry of Corporate Affairs. For every private company, it is mandatory to file an annual return and audited financial statements with the <strong>Ministry of Corporate Affairs<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/\">[1]<\/a><\/sup> for every financial year. The Registrar of Companies  filing is compulsory irrespective of the turnover, regardless of whether it is zero or in crore. Irrespective of the number of transactions done, annual compliance are mandatory for every registered company. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_mandatory_Annual_Compliance_for_Private_Limited_Company\"><\/span>What is the mandatory Annual Compliance for Private Limited Company? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"485\" height=\"345\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-17.png\" alt=\"Annual Compliance for a Private Limited Company\" class=\"wp-image-2153\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-17.png 485w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-17-300x213.png 300w\" sizes=\"(max-width: 485px) 100vw, 485px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>The compliances applicable in a company are divided in two parts:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"585\" height=\"124\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-18.png\" alt=\"compliances applicable in a company\" class=\"wp-image-2154\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-18.png 585w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-18-300x64.png 300w\" sizes=\"(max-width: 585px) 100vw, 585px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>Mandatory and event-based compliances are elaborated below:<\/em><\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Mandatory Compliances<\/h4>\n\n\n\n<p> Some of the mandatory compliances which a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>private Limited Company <\/strong><\/a>should ensure are listed below: <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"592\" height=\"345\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-19.png\" alt=\"mandatory compliances for private Limited Company \" class=\"wp-image-2155\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-19.png 592w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-19-300x175.png 300w\" sizes=\"(max-width: 592px) 100vw, 592px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>Board Meeting<\/em><\/strong><\/p>\n\n\n\n<ul><li>The Board of Director&#8217;s first meeting is to be conducted within\n30 days of the incorporation of the company.<\/li><li>Furthermore, minimum of four Board Meetings shall be held in a\ncalendar year that is one in every three months.<\/li><li>In a case where the Private Limited Company is classified as a &#8216;<strong>small Company\u2019<\/strong>, at least <strong>two Board Meetings<\/strong> are to be held in a\ncalendar year that is one meeting in every six months. Many Startups fall\nwithin the category of \u2018small company.\u2019<\/li><li>Minimum <strong>of two directors\nor one third (1\/3rd) of the total number of directors<\/strong>, whichever number is\ngreater, are required to be present in the meeting of the Board of Directors.<\/li><li>The discussions in relation to the meeting need to be drafted and\nrecorded in the form of \u201c<strong>Minutes of the\nMeeting<\/strong>&#8221; and must be maintained at the registered office of the\ncompany.<\/li><li>The Directors should be intimated about the <strong>date and purpose<\/strong> of the meeting at least seven days before the date\nof the meeting.<\/li><\/ul>\n\n\n\n<p><strong><em>Annual General Board Meeting<\/em><\/strong><\/p>\n\n\n\n<ul><li>Every Private Limited Company must hold the meeting of its shareholders once every year in a gap of 6 months from the date of closing of the financial year.<\/li><li>The primary aim of an <strong><a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\">Annual General Meeting<\/a><\/strong> includes a discussion of Financial statement, appointment and reappointment of auditors, declaration of dividends, remuneration of directors etc.<\/li><li>The Annual General Meeting shall be conducted during business hours on a working day.<\/li><li>The meeting shall take place at the registered office or at some other place within the city or locality where the registered office is situated or registered.<\/li><\/ul>\n\n\n\n<p><strong><em>Appointment of the Auditor (Form ADT-1) <\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<ul><li>Every Private Limited Company must hold the meeting of its\nshareholders once every year in a gap of 6 months from the date of closing of\nthe financial year that is between 31<sup>st<\/sup> March to 1<sup>st<\/sup>\nApril.<\/li><li>The first auditor is to be appointed within <strong>30 days of its incorporation<\/strong>.<\/li><li><strong>Form ADT-1<\/strong> must be filed for\nappointment of auditors.<\/li><li>The first auditor is appointed for a period of five years.<\/li><li>Form ADT-1 is to be filed after the appointment of the auditor\nwithin 15 days from the Annual general meeting with the Registrar of the\nCompany.<\/li><\/ul>\n\n\n\n<p><strong><em>Directors\u2019 Report<\/em><\/strong><\/p>\n\n\n\n<ul><li>The\ndirectors have to give a declaration report every year.<\/li><li>The\ndeclaration is made as per Section 184(1) in Form MBP-1.<\/li><li>The\ndirector in his declaration has to disclose his directorship in other\ncompanies.<\/li><li>The\ndeclaration must be in writing in a specified Directors\u2019 format.<\/li><\/ul>\n\n\n\n<p><strong><em>Statutory Auditor Auditing the Book of Accounts<\/em><\/strong><\/p>\n\n\n\n<ul><li>A\nregular statutory audit is conducted to examine whether the company\u2019s financial\nposition is accurately represented.<\/li><li>It\nis also conducted to check Book of Accounts, bank balances etc.<\/li><li>The\naudited financial accounts are filed before the Registrar of Companies.<\/li><\/ul>\n\n\n\n<p><strong><em>Filing Form MGT-7 for Annual Returns<\/em><\/strong><\/p>\n\n\n\n<ul><li>The\nAnnual Return is calculated for one financial year that is 1<sup>st<\/sup> April\nto 31<sup>st<\/sup> March.<\/li><li>The Annual Return is filed within 60\ndays of holding of the Annual General Meeting.<\/li><li>The\nAnnual Return is to be filed in form or e-form MGT-7.<\/li><\/ul>\n\n\n\n<p><strong><em>Filing form AOC- 4 Financial Statement<\/em><\/strong><\/p>\n\n\n\n<ul><li>The\nDirectors&#8217; Report, along with the financial statements, should be filed in form\nAOC-4.<\/li><li>Members\nof the company will get approved financial statement and Directors\u2019 report at\nleast 21 days before the Annual General Meeting.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Event-Based Compliance for Private Limited Company<\/h4>\n\n\n\n<p>There\nare other compliances which need to be done when an event takes place. Some of\nthem are mentioned below:<\/p>\n\n\n\n<ul><li>Change in Directors or the registered office.<\/li><li>Increase in paid-up capital or increased share capital.<\/li><li>Filing of all resolution and agreements.<\/li><li>The issue of remuneration or loans to the Directors.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\" target=\"_blank\" rel=\"noopener noreferrer\">Procedure of Filing Annual Return: A Complete Guide<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_Annual_Compliance\"><\/span>What are the benefits of Annual Compliance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> <strong><em>By maintaining simple procedure private Limited Companies can: <\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"503\" height=\"354\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-21.png\" alt=\"benefits of Annual Compliance\" class=\"wp-image-2157\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-21.png 503w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-21-300x211.png 300w\" sizes=\"(max-width: 503px) 100vw, 503px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_information_and_documents_needed_for_Annual_Filing_of_Company\"><\/span>What are the information and documents needed for Annual Filing of Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> <strong><em>The checklist of Documents needed for Annual Filing of a Private Limited Company is mentioned below: <\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"514\" height=\"347\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-22.png\" alt=\"Documents needed for Annual Filing of a Private Limited Company is mentioned \" class=\"wp-image-2158\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-22.png 514w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-22-300x203.png 300w\" sizes=\"(max-width: 514px) 100vw, 514px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\">Incorporation Documents<\/h4>\n\n\n\n<p><strong><em>Incorporation Documents includes documents like:<\/em><\/strong><\/p>\n\n\n\n<ul><li>PAN\nCard<\/li><li>Memorandum\nof Association of the Private Company<\/li><li>Articles\nof Association of the private Company<\/li><li>Certificate of Incorporation<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">The Audited Financial Statements<\/h4>\n\n\n\n<p>The auditor must audit all the financial statements<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The Board Report and the Audit Report<\/h4>\n\n\n\n<p>The independent Board Report and auditor&#8217;s report must be provided<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Digital Signature Certificate of Director<\/h4>\n\n\n\n<p>The valid Digital Signature Certificate of one of the Directors must be provided<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Know about the Consequences of Non-Compliance<\/h3>\n\n\n\n<p>In case a company fails\nto follow any of the regulatory compliances which are mandatory, then the\ncompany and every officer who is in default shall be punishable with a fine for\nthe default period. The penalties will keep on increasing as the time period\nfor <strong>non-compliance<\/strong> increases.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contact_Corpbiz_for_Easy_Annual_Compliance_for_Private_Limited_Company\"><\/span><strong>Contact Corpbiz for Easy Annual Compliance for Private Limited Company!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Our <strong><a href=\"https:\/\/corpbiz.io\/\">Corpbiz<\/a><\/strong> professionals will provide you with complete guidance on all the compliances applicable to your company. Our experienced team is driven by Chartered Accountants, Company Secretary and IT professionals having vast experience in their respective fields. Our professionals will provide emphasis on end to end compliance procedures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To maintain shareholder&#8217;s trust and to bring the company a competitive advantage, the company should follow their mandatory compliance. The compliance act also attracts regular investment in the company. Failure to comply with annual compliance may lead to the removal of the company&#8217;s name from the Register of Companies register. The Ministry of Corporate Affairs is taking extreme steps to deal with any such failures. Take help of professionals as managing timely fulfillment of compliance along with day to day operations of company&#8217;s business is very difficult, so it is better to take help of our services.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/\" target=\"_blank\" rel=\"noopener noreferrer\">What are The Compliance and Annual Filing Requirements of One Person Company?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every Private Limited Company must file various forms and documents on an annual basis as per the Companies Act, 2013 and Companies Incorporation Rules, 2014. A private Limited Company is a separate legal entity with a benefit of limited liability to its shareholders. A Private Limited Company must stay away from legal disputes that would [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":2159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[269],"acf":{"service_id":"321"},"authorName":"Deepti Shikha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/Deepti-Shikha.jpg","authorDescription":"Deepti is a Law graduate with an avid interest in reading and very proficient in summarizing legal cases. She has enough experience in handling legal affairs of the company. In the initial days of her career, she has worked as a legal researcher and has 3+ years of experience.","postViews":17227,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2152"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=2152"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2152\/revisions"}],"predecessor-version":[{"id":24730,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2152\/revisions\/24730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/2159"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=2152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=2152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=2152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}