- Lawyer Mr. Shaman Jain
- Skills Secretarial Compliances
- CATEGORY Compliances, Secretarial Compliances
ABOUT THIS PRACTICE
Various advantages of a private limited company include restricted liability, fund raising from Venture capitalist and uninterrupted existence. Increased annual compliance certainly strengthens belief of the community .
It is important for every private limited company to carry on its Annual General Meeting every financial year and file an annual return with the Ministry of Corporate Affair to maintain compliance.
In case of a newly incorporated company, the annual general meeting must be conducted within 18 months from the date of incorporation or within 9 months from the date of closing of the first financial year, whichever is earlier. However in case of a succeeding annual general meeting, it should be held within 6 months from the end of financial year. Annual Compliance of a Private Limited Company must be filed within 60 days from the date of the annual general meeting.
Benefits of Annual Compliance
- Raising Company’s Credibility: Compliance with the law is basic requirement of any business . The date of the company’s annual return filing is displayed on the Master Data on MCA portal. Orderly compliance helps in evaluating the reliability of an organisation for the purposes of government tenders, loan approval or other similar projects.
- Attract Investors: A proposal is finalized only after the investors have a clear picture of all the financial records and dates. When a company provides their investors with accurate and transparent records they are able to attract better funds from their investors. It's up-to the investors if they wish to approach the company directly or check the financial records from the MCA portal. Regular compliance records build up the trust of Investors in their companies companies .
- Maintain Active Status and avoid penalties: Company's status is turned to default and heavy penalties are imposed on a company when it fails to file the return regularly . It may also lead to declaring the company as defunct or even lead to removal of company from the ROC. Not only this, it also disqualifies the concerned directors from their further appointment. Since July 2018, cases of delay attract an additional fee of ₹100 per day of delay till the date of filing.
- Incorporation Document: PAN Card, Certificate of Incorporation and MoA – AoA of Private Company
- Audited Financial Statements: Financial Statements must be audited by independent auditor
- Audit Report & Board Report: Independent auditor’s report and Board report must be provided
- DSC of Director: Valid and active DSC of one of the directors must be provided
Due Dates of compliance for Private Limited Company
- AOC - 4 (Financial Statement): Within 30 days from the date of AGM
- MGT - 7 (Annual Return): Within 60 days from the date of AGM
Process to Annual Compliance Of Private Limited Company
- Discussion and collection of basic Information
- Provide Required Documents
- Decide the due dates of ROC filing for Pvt. Ltd. Company
- Drafting necessary documents
- Attachment of supporting documents
- Filing of AOC – 4 (Financial Statements)
- Filing of MGT – 7 (Annual Return)