Company Annual Compliance

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Company compliance is an important aspect that has to be taken into account while running a business. It is mandatory to adhere to all the ROC compliance to avoid penalties. All private limited companies, one-person companies, limited companies, and section 8 companies must maintain annual compliance with respect to the Companies Act of 2013. These company compliances are usually independent of the total turnover or the capital amount involved. The ROC compliance for registered private limited companies is mandatory. Not being able to adhere to the annual compliances for private limited companies may result in serious action on the firm.

Annual Compliances refers to the set of legal and regulatory requirements that a Private Limited Company must comply with on an annual basis. These compliance requirements are mandated by the Companies Act, 2013, and other applicable laws & regulations.

Company Annual Compliance

Applicability of Annual Compliance

All companies registered in India, like private limited companies, one-person companies, limited Companies, and section 8 companies, must maintain annual compliances like annual returns and income tax returns each Year. 

Benefits of Annual Compliance

Greater Company's Credibility

The regularity in compliance also increases the business's credibility, attracts more customers and helps in obtaining the government tenders and loan approval. 

Attract more Investors

The main focus points with regard to the investors are financial records and compliances. Before investing in any company, the investors first look into the regularity of filing 

Maintain the Active status of a company and avoid penalties

It is important for a company to file annual compliances on a regular basis to avoid penalties. Failure to file the annual compliance reduce status

What compliances are to be maintained by Company?

The compliances can be categorized as below:

  • Registrar related Compliance
  • Non-Registrar Compliance

Registrar related Compliance

  1. Declaration of Commencement of Business-Form INC-20A(To be filed within 180 days from the date of incorporation)
  2.  Directors KYC-Form DIR-3KYC
  3.  Directors’ disclosure of not being disqualified-Form DIR-8 (Each company director in each financial year must file a non-disqualification report with the Company.)
  4.  Mandatory Appointment of Auditor-

    FORM ADT-1(Every Company will have to appoint an Auditor within 15 days of the incorporation. However, Form ADT-1 may be filed post-first company AGM)

  5. Meetings of the Board of Directors-A firm will have to hold a minimum number of four Board meetings. The maximum gap between two sessions is at most 120 days, and a meeting is held every quarter.
  6.  Annual General Meeting (AGM)-AGM shall be held within six months from the closing of the financial year
  7.   Annual Return-Company Annual Return should be filed Within sixty days of the date of holding the AGM.The annual return Form MGT-7  should be filed for the period 1 April to 31 March for the respective Year.
  8. Financial Statements-The form AOC-4 is used for filing  Financial Statements Within thirty days of holding the AGM.

Other Non-RoC Compliances

  1. Payment of periodic dues (GST Liability, TDS, TCS payment, Advance tax, and PTax)
  2. Filing of regular returns –
    • Monthly/Quarterly/Annual GST Returns
    • Quarterly TDS Returns
    • Assessment of advance tax liability
    • Filing of Income Tax Returns
    • Filing of Tax Audit Report
    • Filing of half-yearly ESIC returns
    • Filing of PF returns
    • Filing of professional tax (PTax) returns

Frequently Asked Questions

Q1: What does the register should contain?

All the companies pertaining to the Private limited category are expected to have sanctioned records maintained update for the following members, charges, loans and investments

Q2: What happens if I don't comply with annual requirements?

Non-compliance can lead to penalties, legal troubles, and even the dissolution of your company.

Q3: Is compliance the same for all types of companies?

No, it varies based on factors like your company’s structure, size, and industry.

Practice area's of B K Goyal & Co LLP

Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice 

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