Navigating Private Limited Company Compliances: A Comprehensive Overview

Ensuring compliance, the act of adhering to specified rules, orders, or requests, is imperative for the seamless operation of a private limited company incorporated in India. In the realm of corporate governance, the Companies Act, 2013, plays a pivotal role in dictating the appointment, qualification, remuneration, retirement of directors, and various other facets of company management.

Crucial Aspects of Private Limited Company Compliance:

• ROC Compliance:
  • Necessity: Irrespective of turnover or capital, private limited companies must meet the annual compliance requirements.
  • Types: This includes annual returns and income tax return filings.
  • Professional Assistance: Given the intricacies, seeking professional help is advisable to prevent penalties or fines.

Common Compliances for Private Limited Companies:

• Commencement of Business (within 180 days):
  • Companies registered after November 2019 with share capital must obtain a commencement of business certificate within 180 days.
  • Penalty for non-compliance: Rs. 50,000 for the company and Rs. 1,000 per day for directors.
• Auditor Appointment (Within 30 days):
  • Appointment within 30 days of incorporation is mandatory.
  • Penalty for non-compliance: Rs. 300 per month.
• Income Tax Return (Due by October 31, 2023): Mandatory filing for Financial Year 2022-23.
• MCA Form AOC-4 (Due by 30 days from the date of AGM): Filing for FY 2022-23. Penalty for non-compliance: Rs. 100 per day.
• MCA Form MGT-7 (Due by 60 days from the date of AGM): Filing for FY2022-23. Penalty for non-compliance: Rs. 100 per day.
• DIN eKYC: Requirement: Directors must file for DIN eKYC or DIR-3 eKYC. Penalty for non-compliance: Rs. 5,000.
• Annual General Meeting (AGM):
  • Frequency: Private limited companies must hold AGMs once a year within six months from the financial year's closing.
  • Agenda: Approval of financial statements, dividends declaration, auditor appointment, and more.
• Board Meeting:
  • First Meeting: Mandatory within 30 days of incorporation.
  • Frequency: Four board meetings every three months.
• Directors Report:
  • Details: Directors must disclose annual directorship in writing.
  • Annual Compliance: Necessary for legal adherence.
• Income Tax Compliance:
  • Quarterly Payment: Advance tax payments.
  • Annual Filing: Filing of income tax returns.
  • Tax Audit: Mandatory if turnover exceeds Rs. One crore.
• Event-Based Compliances:
  • Instances: Changes in capital, share allotment, loans, director appointments, etc.
  • Filing Requirement: Different forms for each event.
• Non-Compliance Consequences:
  • Penalties: Fines for the duration of default.
  • Additional Fees: Incurred for delayed filings.

Streamlining Compliance with Professional Assistance:

• Dedicated Advisor:
  • Role: Assigned Compliance Manager as a single point of contact.
  • Assistance: Available for all company compliance matters.
• Accounting Services:
  • Maintenance: Support for maintaining accounts and preparing financial statements.
• Secretarial Services:
  • Meeting Minutes: Assistance in preparing board meeting minutes and secretarial reports.
• MCA Annual Return Filing:
  • Timing: Preparation and filing of MCA annual return.
• Income Tax Return Filing:
  • Preparation: Document preparation and filing of income tax returns.

In Conclusion:

Understanding and navigating the multifaceted landscape of private limited company compliances is a complex task for entrepreneurs. Seeking professional assistance ensures timely fulfillment of obligations, preventing legal consequences. With a dedicated Compliance Manager, businesses can focus on operations while maintaining regulatory adherence. Fulfilling compliances not only upholds legal standing but also unlocks benefits for the company's growth and sustainability.