Annual Compliance Requirements for a Private Limited Co. in India

 Annual Compliance Requirements for a Private Limited Co. in India

Pvt Ltd Co. in India must comply with several regulatory requirements under the Companies Act, 2013, the Income Tax Act, and other applicable laws. Timely compliance not only ensures smooth functioning and legal standing but also helps avoid hefty penalties and director disqualification. 📅 Key Annual Compliance Requirements 1. Board Meetings ·      Frequency: Minimum of 4 meetings in a financial year (at least one per quarter). Except OPC, Small Companies, and Dormant Companies. ·      Gap Between Meetings: Not more than 120 days. ·      Documentation: Proper minutes must be maintained for each meeting. 2. Annual General Meeting (AGM) ·      Requirement: Mandatory each year (except the first financial year). ·      Due Date: Within 6 months from the end of the financial year, no later than 30th September. ·      Notice: Minimum 21 days' notice to shareholders, directors, and auditors. 3. Annual Filings with the Registrar of Companies (RoC) ·      Form AOC-4: For filing financial statements. ·      Form MGT-7: For filing the annual return. ·      Due Dates: o  AOC-4: Within 30 days from the date of AGM. o  MGT-7: Within 60 days from the date of AGM. 4. Income Tax Return (ITR-6) ·      Requirement: All companies (except those claiming exemption under section 11) must file ITR-6. ·      Due Date: o  30th September if audit is applicable. o  31st October if subject to transfer pricing. 5. Tax Audit (if applicable) ·      Thresholds: Mandatory if turnover exceeds: o  ₹1 crore (business) o  ₹50 lakhs (professionals) ·      Forms: File Form 3CA/3CB and Form 3CD. 6. Statutory Audit ·      Requirement: All Pvt Ltd companies must have their financials audited annually. ·      Auditor Appointment: File Form ADT-1 for appointment/reappointment of auditors. 7. DIR-3 KYC ·      Who: Every director with a DIN must file their KYC annually. ·      Due Date: 30th September. 8. MSME Form I (if applicable) ·      Requirement: Filed if dues to MSME vendors remain unpaid for more than 45 days. ·      Filing Frequency: Twice a year: o  April–September: Due by 30th October o  October–March: Due by 30th April 9. Event-Based Compliances Triggered by specific corporate actions, these include: ·      Change in directors: Form DIR-12 ·      Change in registered office: Form INC-22 ·      Increase in authorized capital: Form SH-7 ·      Allotment of shares: Form PAS-3 ⚠️ Consequences of Non-Compliance ·      Financial Penalties: Late filing fees (e.g., ₹100/day for certain RoC forms). ·      Legal Repercussions: Company may be marked as “inactive” or “defaulting.” ·      Director Disqualification: Due to non-filing of annual returns for 3 consecutive years. 📌 Final Thoughts Maintaining annual compliance for a Pvt Ltd company is not just a legal formality but a critical component of good corporate governance. Engaging a professional can help ensure timely filings and avoid unnecessary hassles.

Comments

Post a Comment

Popular posts from this blog

Key Highlights of Section 194T:

Key Highlights of Section 194T: ✅ Effective from: April 1, 2025 ✅ Who needs to deduct TDS? Firms & LLPs ✅ Threshold Limit: ₹20,000 per financial year (Aggregate) ✅ TDS Rate: 10% (20% if PAN/Aadhaar not provided) ✅ Applicable on both working & non-working partners ✅ No exemption via Form 15G/15H or lower TDS certificate 🔹 Why is this important? Earlier, no TDS was required on such payments due to Section 40(b), but from April 1, 2025, firms/LLPs must deduct TDS before crediting or paying these amounts. This is a significant change impacting partnership firms, LLPs, and their partners. Firms must now ensure TDS compliance to avoid disallowance under Section 40(a).
Read more

My CA Journey summary

  Chartered Accountancy (CA)  is one of the most popular   professional courses . It is one of the Toughest courses in the world. It requires an integration of intelligence, hard work , Patience, Determination and continuous dedication with non-stop efforts.  Many aspirants relinquish this challenging journey and replace their dreams with  some other career options . My CA journey mentioned  below in  short summary: If I can become a Chartered Accountant anyone CAN. I Came from a village background with Telugu medium upto graduation. After graduating, I was confused as to what I should do. My Big Brother wanted me to pursue CA so that I have a degree, which would help me get a basic job and the required financial support in the future. That is when I decided to study further and become a Chartered Accountant. Initial period of my CA journey I was faced with a little bit of a medium issue, however I was able to clear the 1st 2 stages of CA early by spen...
Read more

GST on Corporate Guarantee

GST on Corporate Guarantee : one company (let’s say Company H) provided a corporate guarantee to a Bank or Financial institutions on behalf of its related entity, Company S . Since Company H and Company S are related persons under GST law, the question arises: ➡ Is a Corporate Guarantee taxable under GST? ➡ If yes, on what value should it be taxed, considering it is provided free of cost? Analysis As per Section 7(1)(c) read with Para 3 of Schedule I of the CGST Act, 2017, any supply of goods or services between related persons or distinct persons, made in the course or furtherance of business, is deemed a supply even without consideration. Further, Rule 28(2) of the Valuation Rules, 2017, provides that the value of a Corporate Guarantee shall be determined as: ✅ 1% per annum of the guaranteed amount (irrespective of whether the loan is partly or fully utilized) OR ✅ Actual consideration charged (if any) Whichever is higher However, as per the proviso under Rule 28, if the recip...
Read more