Annual compliance for Private Limited Company in India

Introduction

A Private Limited Company is a separate legal entity from its directors or shareholders. For it to remain operational, it needs to be kept in check by submitting regular paperwork to the Ministry of Corporate Affairs (MCA).

The Annual General Meeting must be conducted within 6 months from closure of the financial year i.e., 30th March every year. Once the AGM is concluded, the Private Limited Company in India must file annual returns, financial statements, DIN eKyc and any other compliance with Registrar of Company.

Annual Compliance for Private Limited Company

1. Annual general meeting: Companies should hold their AGM within six months from the closure of the financial year. The AGM should be conducted with the purpose of preparing financial statements, annual returns, director's report etc.

2. Appointment of auditor: All companies to appoint a statutory auditor within 15 days from the date of AGM and submit the ADT-1 Form with the auditor's information. The fine for delay of filing this form depends on the days of delay like if up to 30 days then fine is 2 times of normal fees or more than 30 days and less than 60 days then fine is 4 times of normal fees and so on.

3. Financial statements: For submitting the company's financial statements, the AOC- 4 Form must be filed within 30 days of the date of AGM. Failure to file it will result in a penalty of Rs. 100 per day.

4. Annual returns: For submitting the company's annual returns, the MGT-7 Form must be filed within 60 days of the date of AGM. Failure to file it will result in a penalty of Rs. 100 per day.

5. DIN eKYC: It must be filed for each and every director of the company. The Director must include a separate mobile number and a personal email address in DIR-3 eKYC. Failure to submit DIN eKYC will lead to a fine of Rs 5000.

6. Director's report: All the information required by Section 134 will be included in the preparation of the Director's report.

7. Income tax return: According to the Income Tax Act of 1960, all companies are required to file ITR-6. It must be filed on or before 30th October (for the year 2022). It should be noted that the ITR-6 deadline is constantly shifting and is announced by the authorities each year.

Conclusion

Though filing compliance is stressful, not filing or delay in filing of legal compliance can incur penalties. Therefore, you must comply with the filing of the annual compliance for Private Limited Company as per the due date announcement by the authorities because it will help you build goodwill for your company.