Annual Compliance of Pvt Ltd Company A Private Limited Company is a small business that is maintained privately, it is one of the highly recommended businesses in India especially for startups. A separate expert team controlling all the Annual Compliance of Pvt Ltd Company, ROC filing, ITR filing, and its active status through the regular filing with MCA. The registration of the private limited company is governed by The Companies Act 2013 in India. According to the Companies Act, 2013, a minimum of 2 shareholders is needed to begin a private company, while a maximum of 200 members. In case a private limited company undergoes any financial risk, the personal assets of members or shareholders are not subject to sell, i.e. they ought to have limited liability. An Ltd. allows indebtedness to its proprietors and to its management team. But within the case of a public Ltd. , a firm can sell shares to investors which are considered as a beneficial act in raising the capital for the business. To establish a Public Ltd., a minimum of three Directors are required and there's no cap on the utmost number of members. Importantly, it's more strict regulatory requirements in comparison to a personal Ltd. . Public Ltd. may be a different sort of company but holds most of the characteristics of a personal Ltd. . It enjoys more benefits such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other company in India, Public Limited Company is also registered according to the rules and regulations of the Companies Act, 2013. Benefits of Annual Compliance Increase The Company’s Credibility Compliance with the law is the basic requirement for any company or business. The date of filing the company’s annual return is displayed on the Master Data on the MCA portal. This helps to extend the credibility of a corporation and therefore the regularity in compliance of the return may be a major criterion like Government tenders, authorization, or for similar other functions. Attract Investors While pulling capital or investment for a company from the creditors or investors, the first point the investors demand is for the financial records and date before settling with an investment proposal deal. The investors will approach the private limited company directly or also they will check the financial records or annual returns from the MCA portal. Investors prefer the companies which have filed their regular compliance records. Maintain Active Status By filing the annual return regularly, the private company can avoid penalties and other legal issues. Whereas if the corporate fails to file the return continuously, the corporate status is going to be changed to default, and charges for this failure are going to be heavy penalties. Not only that, but the company also be declared as inoperative or removed from the Register. The directors of such a company are also debarred and disqualified from their further appointment. And, from July 2018, an additional penalty fee of ₹100 per day of delay will be levied and this will continue till the date of filing. Documents Required for Annual Filing of Company Incorporation Document Certificate of Incorporation, PAN Card, and MoA and AoA of Private Limited Company Audited Financial Statements Financial Statements should be audited by the independent auditor Board Report and Audit Report Independent auditor’s report and Board report is also required DSC or Digital Signature Certificate of Director Valid and active Digital Signature Certificate or DSC of 1 of the administrators must be submitted Mandatory Annual Compliances of a Private Limited Company Here are a number of the mandatory agreements that a personal Ltd. must insure: First Meeting of Board Along with all directors of the company, the First meeting of the Board is required to be held within 1 month or 30 days of Incorporation. Declaration of Board meeting must be informed formally or sent to each director of the company at least seven days before the meeting. Subsequent Board Meetings Minimum of 4 subsequent Board Meetings to be done every year within 120 days gap within two meetings. Filing of acknowledgment of interest by the company’s directors, Every director at: First Auditor The Body of Directors shall delegate the first Auditor of the Company within the time period of 30 days of Incorporation who shall keep the office till the completion of 1st AGM. In the case of the primary Auditor, filing of ADT-1 isn't mandatory. Subsequent Auditor The BOD shall assign the Auditor Auditor in the first AGM of a private limited company who shall stay in the position till the decision of 6th AGM and shall inform the same to ROC by filing ADT-1. The content to submit Form ADT 1 is that of the Private Limited Company and not of the Auditor Auditor within the time period of 15 days from the time of designation. Annual General Meeting Every Private Limited Company is required to organize an Annual General Meeting on or before 30th September every financial year during office working hours. On a day if it is not a general public holiday and either at the registered office of the private limited company within the village/town/ city where the registered office is positioned. A 21 bright days' notification is needed to be given for the same. Filing Of Annual Return (Form MGT-7) All the Private Limited Companies are expected to file their ROC Filing within the time period of 60 days of the functioning of the Annual General Meeting. Annual Return of the company will be filled between' 1st April to 31st March of every year. Filing Of Financial Statements In (Form AOC-4) Every private Limited Company is required to file their 'Balance Sheet' with a statement or report of 'Director Report' and 'Profit and Loss Account' in this Form in 30 days of holding off the 'Annual General Meeting'. Statutory Audit Of Accounts Every Private Limited Company should prepare its reports of accounts and obtain the proper audited mandatorily by a Professionals/Chartered Accountant at the every Financial Year-end. The Auditor must provide an Audit Report and the Audited Financial Statements of the company to submit to the Registrar.