{"id":37465,"date":"2021-11-06T10:00:50","date_gmt":"2021-11-06T04:30:50","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=37465"},"modified":"2021-11-01T16:51:48","modified_gmt":"2021-11-01T11:21:48","slug":"casting-light-on-roc-compliance-post-incorporation-for-private-companies","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/casting-light-on-roc-compliance-post-incorporation-for-private-companies\/","title":{"rendered":"Is it necessary for a private company to comply with the ROC compliances post-incorporation?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Running a private company with all requisite compliances is equally intricate as running a Public Limited Company. Over the years, the company incorporation process has been made simpler. It encourages the companies including Private Company to meet all the Compliance post-incorporation. To enhance transparency, every Company including a private company registered under the Ministry of Corporate Affairs shall follow the requisite compliance. However, it is the responsibility of the directors to make sure that all the necessary Compliance post-incorporation has duly complied. This write-up pens down the mandatory compliances to be followed by the Private Company post-incorporation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mandatory compliance post-incorporation for Private Limited Company-<\/h2>\n\n\n\n<p>In the Case of a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Private company<\/strong><\/a>, Mandatory compliance post-incorporation includes appointment, qualification, and remuneration, of directors of the Company. <strong><em>The mandatory compliances post-incorporation also include-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Conducting the Director\u2019s and Shareholder\u2019s Meetings.<\/li><li>Preparation and recording the Annual accounts\nand,<\/li><li>Preserving the necessary documents.<\/li><\/ul>\n\n\n\n<p>Below-mentioned\nare the compliances that a private company needs to comply with post-incorporation-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Conducting a Board Meeting<strong>&#8211;<\/strong><\/h3>\n\n\n\n<p>Every\nPrivate Limited Company post incorporation shall hold its Board meeting within\n30 days post-incorporation. After thefirst meeting, a minimum of 4 Board\nMeetings shall be held every financial year. However, a gap shall not be more\nthan 120 days between two successive meetings.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Who can hold the First Board Meeting?<\/h4>\n\n\n\n<p>Any\nDirector of a company may, at any time, can call the Board Meeting. Also, on\nthe requisition of a Director, the Company Secretary, or in case of absence of Company\nSecretary, the authorized person by the Board of Directors shall hold a Board\nmeeting. The Board meeting shall be held in consultation with the Chairman or\nin the absence of Chairman, the Managing Director or Director of the Company is\nauthorized to hold the meeting.<\/p>\n\n\n\n<p><em><strong>Checklist to follow before conducting the Board Meeting-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Notice of the meeting to the Directors of the Company.<\/li><li>Appointment of Chairman.<\/li><li>Proper Quorum.<\/li><li>Disclosure of items to be discussed in the Board meeting.<\/li><li>Preparing the Attendance Register.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. How to hold an Annual General Meeting<\/h3>\n\n\n\n<p>Holding an Annual General Meeting is one of the mandatory compliances post-incorporation to be followed by the Private company. Every Private Limited Company is required to hold an Annual General Meeting where every shareholder and stakeholder gets an opportunity to meet every year and discuss matters relating to the Company. An Annual general meeting gives an overview of what steps a company shall make which will be beneficial for the shareholders. The meeting must be held at the registered office of the company and also it should be conducted during working hours.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Basis\nof holding an Annual General Meeting-<\/h4>\n\n\n\n<p>The <strong>first meeting<\/strong> shall be held <strong>within 9 months<\/strong> from the date of closing of the 1<sup>st<\/sup> financial year of the Company.<\/p>\n\n\n\n<p>The <strong>Subsequent AGM <\/strong>shall be held <strong>within 6 months<\/strong> from the date of closure of the financial year.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> As per the \u201cSecretarial Standard issued by the ICSI\u201d every company shall necessarily observe the Secretarial standards concerning the Board Meetings and General Meetings.<\/div>\n\n\n\n<p><strong><em>Checklist to be complied with before conducting the Shareholder\u2019s Meeting-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Notice to\nthe shareholders about the AGM<\/li><li>Particulars\nof the Meeting.<\/li><li>Confirmation\nof Appointment of Chairman.<\/li><li>Requisite\nQuorum.<\/li><li>Details\nof the business items to be discussed in the Shareholder\u2019s meeting.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Appointment of Auditor<\/h3>\n\n\n\n<p>The First Auditor shall be appointed by the Board of Directors,&nbsp;<strong><em>within 30 days from the Date of Incorporation<\/em><\/strong>. In case of failure, the members shall appoint the First Auditor within 90 days of the Extra-Ordinary General Meeting.<\/p>\n\n\n\n<p>A company shall inform\nthe Registrar of companies (ROC) in&nbsp;<strong>Form ADT-1<\/strong>&nbsp;about the\nappointment of an auditor in a manner prescribed under section 139 (1) of the\nnew companies act 2013.&nbsp;<\/p>\n\n\n\n<p>As per the Companies act 2013, a company shall communicate with the auditor about the appointment and ask for written consent and also form ADT-1 shall be filled within 15 days from the first board meeting.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> The first Board is required to be held within 30 days from the date of its incorporation.<\/div>\n\n\n\n<h4 class=\"wp-block-heading\">Attachments required for Filing ADT-1<\/h4>\n\n\n\n<p><em><strong>The Below-mentioned attachments are required for filing Form ADT-1<\/strong><\/em><\/p>\n\n\n\n<ul><li>Copy of Board Resolution duly certified by the Directors<\/li><li>Written consent from the auditor to be appointed.<\/li><li>Copy of intimation letter to the auditor.<\/li><li>Declaration from the Auditor that he\/she\/it is not disqualified to be appointed as an Auditor u\/s 141.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">4. Registered Address<\/h3>\n\n\n\n<p>The Registered Address of\nthe Company is required to receive all official communication from the various\nauthorities. As per the Companies Act, 2013, a company (Whether Private or\nPublic) shall have a registered office within 15 days from the date of\nincorporation. The Company shall intimate the same to the ROC&nbsp;<strong>within 30\ndayspost-incorporation.<\/strong><\/p>\n\n\n\n<p>Also, the Companies\nincluding Private Company shall affix its name at all places from where it\nexecutes its business operations. The Company&#8217;s name along with the registered\naddress shall be published in the vernacular language.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Unveiling of Director\u2019s Interest-<\/h3>\n\n\n\n<p>As mentioned in section 184(1) of the <em><strong>Companies Act 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, Every director at the first Board meeting of the company shall disclose his\/her interest in-<\/p>\n\n\n\n<ul><li>Any company,<\/li><li>Firm,<\/li><li>Body corporate,<\/li><li>Association of individuals.<\/li><\/ul>\n\n\n\n<p>&nbsp;Any changes in the disclosure of Interest shall be informed to the board in its first Board meeting held during each financial year. <\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> In case of an appointment ofan independent director, he\/she must give a declaration that he meets the criteria of independence during his\/her first board meeting as a director.<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">6. Filing of AOC-4 and MGT-7<\/h3>\n\n\n\n<p>Every Company including Private Company shall file AOC-4 and MGT-7 to the ROC. Filing of Financial Statement through <strong><em>Form AOC-4<\/em><\/strong> discloses all the financial transactions done by the company in the financial year. Form AOC-4 shall be filed <strong><em>within 30 days from the date of AGM<\/em><\/strong>. Form AOC-4 shall include-<\/p>\n\n\n\n<ul><li>Balance Sheet and disclosure of the particulars of the Balance Sheet.<\/li><li>Profit and Loss.<\/li><li>Cash flow statement (If any).<\/li><li>Particulars of CSR.<\/li><li>Details of Related party transactions.<\/li><li>Details of Auditors and Auditors report.<\/li><\/ul>\n\n\n\n<p>Also, every company has to file form <strong>MGT-7 within 60 days<\/strong>\nfrom the date of holding the Annual General meeting.MGT-7 shall contain the\nfollowing information-<\/p>\n\n\n\n<ul><li>Particulars of the Board and shareholders meeting.&nbsp;<\/li><li>Details of Registered office and principal place of business of other holdings and associate companies.<\/li><li>Shareholding pattern&nbsp;<\/li><li>Disclosure of shares, Debts, and other securities&nbsp;and any changes that occurred during the financial year.<\/li><li>Disclosure of change in Debenture holders\/shareholders.<\/li><li>Disclosure of Key managerial personnel, directors, and promoters along with the changes during the year.<\/li><li>Remuneration of Directors and KMPs of the Company.<\/li><li>Particulars of the legal matters <\/li><li>Particulars of any penalty or fine imposed on the company<\/li><li>Liability or indebtedness<\/li><li>Authentication of compliance matters.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">7. Maintenance of Register<\/h3>\n\n\n\n<p>Maintaining Register is also one of the compliances post-incorporation i.e. every Private Company shall maintain the statutory registers like the register of Board meetings, Annual General Meetings, and various meetings held in the company. The company shall maintain the minutes of every meeting. A Private company must prepare their books of account and get them audited by the CA at the end of every financial year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>In addition to the Mandatory compliance post-incorporation, the Private companies shall also comply with the non-mandatory compliances like GST Payment, <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST Filing<\/strong><\/a>, <a href=\"https:\/\/corpbiz.io\/tds-return-filing\"><strong>Filing of TDS<\/strong><\/a> and TCS, Filing of Tax Audit reports, and <a href=\"https:\/\/corpbiz.io\/tax-audit\"><strong>Tax audits<\/strong><\/a>, etc. In case of any default, the Company and the Officers in Default shall pay the fine for the default period. Also, in case of delay, Additional fees have to be paid by the company.&nbsp; Hence, every company including a private company should comply with mandatory compliances post-incorporation.<\/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\/benefits-of-private-company-registration\/\">Exciting Benefits of Private Company Registration That You Can\u2019t Ignore! <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a private company with all requisite compliances is equally intricate as running a Public Limited Company. Over the years, the company incorporation process has been made simpler. It encourages the companies including Private Company to meet all the Compliance post-incorporation. To enhance transparency, every Company including a private company registered under the Ministry of [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":37581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2015],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3362,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37465"}],"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\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=37465"}],"version-history":[{"count":50,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37465\/revisions"}],"predecessor-version":[{"id":37520,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37465\/revisions\/37520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/37581"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=37465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=37465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=37465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}