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Annual Compliance for Private Limited Company in India

The Registrar of Companies for the registered Private Companies is vital. Besides of total turnover or the capital amount, the Company must comply with the requirements of the annual compliance.

All the Companies registered in India like LLP, Private Limited Company, Section 8 Company and LLP must maintain the annual compliance such as IT return and annual returns each year. Managing the business activities or operations everyday while complying with the difficult corporate laws can be a task for the entrepreneur.

In India, every company incorporated in India, including OPC, LLP, Private Limited and Section 8 Company must file annual returns with ROC every year. It requires conducting of an AGM and filing annual accounts with Registrar of Companies (ROC). Annual General Meeting must be held within 6 months from the end of the Financial Year (i.e., 30th September every year).

In case of new companies, 1st Annual General Meeting should be held within 18 months from the incorporation date or 9 months from the closure of Financial Year whichever is earlier. Companies Act, 2013 mandates that your F.Y. should start from 1st April and end on 31st Mar.

Annual Return includes information & Documents that comprise the Balance Sheet of the Company, P&L Account, Compliance Certificate, Register of Member, Registered Office Address & debentures details, Debt details & information regarding the Company Management.

The Annual Return would also disclose the shareholding structure of the Company, changers in Directorship & details of the transfers of securities.

What are Compliance Services?

Adherence to some rules & regulations is vital for successfully running a business in India. It establishes a standard for companies or businesses to live up to & provides a framework of dos and don’ts of an organisation or company and its employees.

To make sure that companies run responsibly, the Government has laid out a set of rules & regulations. This set of rules & regulations are called Compliances which companies should follow to run a company in India.

Compliances are established by keeping in mind the factors of economic, environmental & public interest. Every company or business must follow these rules to prevent consequences such as revocation or cancellation of License & hindered or slowed down business operations.

However, it can be so difficult for the business owners to remember every guidance & have knowledge of every regulation. Moreover, these regulations are ever-evolving and their importance is rising every day.

Why are Compliance Services Mandatory?

The primary purpose of Compliance Services is to aid companies or businesses remain up-to-date with Governmental & industry standards. It comprises services across various areas like accounting, risk management, registration and startup compliance. Following are the benefits of Compliance Services:

Enhance Reputation:

By engaging in operations that benefit society and the environment, a brand becomes more reputable in the eyes of the Government & customers alike. However, companies who follows these regulations get accredited which makes sanctioning loans & acquiring investors an easy process.

Helps in Creating Healthy Work Environment:

Compliance services help the companies in maintaining the safety & security by employing standards of employee welfare comprising rules for salary, safety, discrimination, etc. Working in a company that highlights the well-being of employees will make them feel safe & boost productivity.

Improves Business Operations:

Certain standards such as those of product quality & health guidelines in the food sector have been placed to make sure the safety of customers. Following these guidelines increases the reputation of the company and helps in accelerating growth.

Prevent Legal Problems:

Compliance Services provide legal assistance, which prevents the risk of lawsuits & penalties. Such events can be harmful to a business & hamper its operations and the reputation it has worked so hard to build. A compliance expert can prevent such happenings by keeping a business updated about standards in every field like advertising & manufacturing.

Provide Financial Help:

The financial department of a business must meet several standards in terms of taxes & accounting. Failure to meet such standards cannot only lead to losses but also legal issues.

Increases the Credibility of the Company:

For any business or company in India, Compliance of Law is the basic requirement. The filing date of Company’s annual return is simply shown on the MCA portal. This helps to increase the Company’s credibility and the regulatory in compliance of the return is a big criterion like loan approval, Government Tenders, etc.

Helps to Attract Potential Investors:

To determine the creditworthiness of a Company or an organisation, potential investors are interested in looking at its financial status. Investors can get in touch with a business directly or follow the development of a standard filing. Due to this, investors choose to invest in a Company or a Business that follows a consistent tile schedule for Private Limited Company Annual Compliance.

Helps to Maintain Active Status of the Company:

By filing the annual return on time, the Private Limited Company can avoid heavy penalties & other legal problems. Whereas if the Company fails to do so, the Company status will change and charges for this failure will be huge penalties. With such penalties, the Company also be declared as inoperative/removed from the ROC. Such Company’s Directors are also disqualified from their further appointment.

Various Compliance for a Business Entity Registered in India

There are so many different parts of a business that must be conducted in the right way, so there are various types of Compliance in Business. Let’s take a look at what they are & what they mean:

External Compliance:

It refers to following the laws, rules & standards set by the Government to avoid any negative impact on the goodwill of the Organisation. The State in which the firm is build public relations & trust and bring transparency to its business. Complying with all the rules ensures any unnecessary duplication of efforts of resources. External Companies are further divided into two parts:

SN. Statutory Compliances Regulatory Compliances

These are the rules and laws passed by the Central or State Government. Following is the list of Statutory Rules that a Company must adhere to:

These are the rules & laws passed by some regulatory bodies set up by the Central or State Government. Some of these are listed below:


Shops and Commercial Establishments Act (S&E)

1. Accounting & Payroll

  • 1 Accounting
  • 2 Employee Payroll

The Employees Provident Funds and Miscellaneous Provision Act – 1952 (EPF)

2. Assurance

  • 1 Statutory Audit
  • 2 Tax Audit
  • 3 Internal Audit

The Employees State Insurance Corporation Act – 1948 (ESIC)

3. Direct Tax

  • 1 Corporate Tax
  • 2 Transfer Pricing
  • 3 Withholding Tax
  • 4 Expatriate Taxation

The Professional Tax Act (PT) 1975

4. Indirect Tax

  • 1 Customs Duty
  • 2 Goods and Services Tax (‘GST ‘)

The Labour Welfare Fund Act (LWF) 1965

5. Secretarial Compliance:

In India, Businesses must comply with secretarial matters cited under the Indian Companies Act & report to the concerned Registrar of Companies.


The Contract Labour (Regulation & Abolition) Act – 1970 (CLRA)

6. Labour Laws:

An employer must consider the impact of the PF or Provident Fund, a government-regulated Pension Plan scheme.


The Child Labour (Prohibition & Regulation Act), 1986

7. Corporate Law

  • 1 Board Meeting
  • 2 Annual General Meeting (adoption of financials)
  • 3 Annual Return with the ROC

The Minimum Wages Act-1948

8. Tax

  • 1 Corporate Tax Return
  • 2 Tax Audit Report
  • 3 Transfer Pricing Report
  • 4 TDS Returns (Tax Withholding)
  • 5 Individual tax return
  • 6 GST Return

The Payment of Wages Act-1936

10. Compliance

  • 1 Deposit of TDS
  • 2 Deposit of GST

The Payment of Bonus Act 1965


The Maternity Benefit Act of 1961


The Payment of Gratuity Act 1972


The Equal Remuneration Act-1976


The Industrial Establishment (N&FH) ACT 1963


The Employment Exchange (Compulsory Notification of Vacancies) ACT-1959


Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013


The Employees Compensation ACT-1923


The Industrial Employment (Standing Orders) ACT 1946


Model Standing Order Only The Industrial Disputes ACT of 1947


The Apprentice ACT, 1961


The Interstate Migrant Workmen (Regulation of Employment and Conditions of Services) ACT, 1979


The Factories ACT of 1948


The Trade Unions Act of 1926


Internal Compliance:

It refers to an internally designed set of rules & regulations that the owners, traders, customers & employees follow to maintain the quality of services/products by the organisation. These are created & sanctioned by senior professionals & are followed by everyone in the company. Some Internal Compliances are setting up BoDs, conducting regular meetings & distributing stocks to shareholders.

Why Corpbiz for Compliance Services in India?

Dedicated Experts

Our point of contact experts are always available for every upcoming requirements that comes along your way.

Lead by Industrial Experts

Corpbiz team possess diverse & expert working experience with top clients from all over India.

Quality work instantly

We provide assured quality services & like to deliver at the most effective time window.

Online Service & After Support

Experience seamless services & after support from our Compliance expert team.

360 Degree Dashboard

Get a complete snapshot of your Company’s compliance status anytime & anywhere. It is easy to keep track of your performance.

Effortless Tracking

Gain complete control over the compliance management through automated triggers & state of the art escalation mechanism.

FAQs Regarding Annual Compliance for a Private Limited Company

It means a set of compliance that a company has to fulfil after incorporation to start and continue its operations. Under the Companies Act, 2013 various compliance must be completed every year.

ROC (Registrar of Companies) if the officer governed by the MCA that deals with the functioning, the ROC has to make sure that the Private Limited Companies and LLPs must comply with the statutory requirement of the Act. The ROC functions as the regulator for the companies registered with them.

The primary purpose of Private Limited Company Compliance is to adhere to internal policies & procedures and Governmental Laws. Implementing compliance procedures protects the reputational risk of the Company, improves the vision and value of the Company and prevents and detects rules violations.

In India, every Private Limited Company must mandatorily get their annual accounts audited each financial year as per the Companies Act and Companies (Accounts) Rules, 2014.

The Companies registered under the Companies Act, 1956 are required to file the following Documents with the Registrar of Companies. The balance sheet in Form 23AC which is to be filed by all the Companies P&L Account in Form 23ACA which is to be filed by all the companies.

In India, small companies or businesses can run without registering, but it’s highly recommended to register the Company to get some benefits and to ensure legal compliance. In India, there are several unregistered business structures that small enterprises generally use like Sole Proprietorship, Hindu Undivided Family, and a Partnership Firm.

This meeting is held for the meeting and the shareholders to interact with each other. The Act makes it mandatory to hold such meetings to discuss the yearly results and appoint auditors.

The Statutory Audit is a mandatory audit for Private Limited Companies. All the companies that are unregistered under the Companies Act, 2013 need to get the Books of Accounts audited every year.

Following are the required particulars needs to be included in the Annual filing:
  • The register of its members;
  • Its shares and debentures;
  • The registered office;
  • The record of its debenture holders;
  • Its members & debentures holders from initial to the present;
  • Its debts;
  • Its Directors, Managing Directors initially appointed & that as of the present day.

The Annual Returns can be filed by any of its directors but it shall be duly-signed by both the Company’s Directors and by the CS/Manager. There are some cases when there is no CS or Manager in such cases a signature of both the Directors are mandatory.

If the Company fails to file an Annual Return then it is considered to be a default of all the shareholders, officers, and the Company. A penalty is charged which may extend to Rs. 500 every day during the period in which the default continues.

Irrespective of size and nature of a Private Limited Company, it is required to get the bunch of accounts audited and file Income Tax Return also the Registrar of Company Compliances by each Financial Year.

For the appointment/replacement of Statutory Auditor, Form ADT-1 is required.

According to Companies Act, 2013, it is compulsory to submit the signed Director Report for every Financial Year with MCA by filing an Annual Return of the Company. The Director’s Report is considered as an attachment for the Form MGT-7.

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