Annual compliance : Private Limited Company

Sanjay/ September 18, 2020/ Company

Below is the list of compliances to be done by Private Limited Company. The same is to be done in order to avoid late fees and penalty:

1. Appointment of the Auditor

The auditor for the Company shall be appointed by the Board of Directors within a period of 30 (Thirty) days from the Date of incorporation of the Company. The appointment shall be filed in ADT-1. In case of failure of the Board to appoint the first auditor within the said period of 30 days, the Board shall inform the members of the Company who shall appoint an auditor within a period of 90 days. The appointment can only be done in an extraordinary general meeting.

2. Disclosure of Interest by Directors

It is to be noted that every director shall in its first board meeting discloses about the interest in any company, firm or other AOI (including any shareholding interest). The disclosure of interest shall be filed every year, if there is any change in the interest, it is to be filed along with the list of relatives as well. This disclosure of interest shall be filed in MBP 1 form shall be submitted with the Company.

3. Holding Board Meeting

This is the first compliance that needs to be done after registering of the private limited Company. Meeting among the board members, the first meeting of the Board shall be conducted within 30 days of registering of the Private Limited Company. Thereafter, at least 4 Board meetings to be conducted every year with a gap of 120 days between each meeting of the Board. This means that every Private Limited Company shall have a minimum of 4 board meetings every year and gap must not be more than 120 days between subsequent Board meetings or every quarter one meeting. Records of these Board meetings shall also be created which is known as the minute of the meeting. For this, registers are to be maintained by the Company. It can also be prepared digitally. Here the agenda of the meeting, attendance of members, and the discussion are recorded

4. Declaration of Commencement of Business

Declaration of Commencement of Business shall be filed in Form 20A. It is a mandatory compliance and needs to be filed with due time lines as prescribed below. The Form 20A shal be certify by the professional like CA CS or CMA.

The form must be filed within 180 days From the date of incorporation

5. Holding Annual General Meeting

The Private Limited Company shall hold a general meeting every year. It is mandatory to conduct it on or before 30th September every year. In case of first AGM shall be held within 9 months of closing of Financial Year. It is to be noted that the AGM shall be conducted within office hour ie., 9 AM to 6PM. The day must not be a public holiday and a clear notice of 21 days shall be given to the members. The Approval of accounts, appointment/re-appointment of auditors, Remuneration of directors are some of the agendas of AGM.

6. Annual ROC filing RoC

Filing is nothing but submission of annual accounts and financials prepared by the Company. Here, list of shareholders, directors, interest, details of other things, board reports and other stuff required to be furnished by the Company with RoC.  

Following are the forms which required to be submitted.

Form MGT-7 (Annual Return) Private Limited Company shall file its Annual Return within a period of 60 days from the date of holding of Annual General Meeting (AGM). 
Form AOC-4 (Financial Statements) Private Limited Company shall file its Balance Sheet together with statement of Profit and Loss Account and Director Report within a period of 30 days from the date of holding of Annual General Meeting (AGM).

6. E- KYC of Directors

E- KYC of Directors made compulsory by MCA. where duly attested PAN and aadhar of director with there valid phone Number & Email id is made madatory to be filed with Ministry of corporate affairs.

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