Compliance’s for a Private Limited Company

This article discusses the list of mandatory compliances that are required to be complied by the private limited company every year.

Private Limited Company

A private limited company is the most preferred type of corporate legal entity to start the business. Besides various advantages in starting the business as a private limited company, there are various legal compliances that need to be followed mandatorily. The entrepreneur should must aware of such compliances that need to be complied with by a private limited company.

Mandatory Compliances for Private Limited Company

• Appointment of Auditor
• Filing of Annual Return
  • Form MGT-7
  • Form AOC-4
• Holding Annual General Meeting (AGM)
• Directors Report
• Board Meetings
• Filing of Income Tax Returns
• Statutory Audit of Accounts
• ACTIVE e-form
• And any other event-based compliances

Appointment of Auditor

As per section 139 of the companies act, 2013 Board of directors of the company has to appoint its first statutory auditor within 30 days from the date of incorporation of a company and such auditor shall hold office till the conclusion of its a first annual general meeting. Failure to do so shall lead to a penalty of Rs.300/- per month and the company will not able to commence its operations.

Filing of Annual Return Form MGT 7

Every company is required to file it’s annual return information every year in form MGT-7 with MCA within 60 days from the date of the conclusion of AGM. As the due date for conducting the company’s Annual General Meeting (AGM) is on or before the 30th September of the subsequent financial year, Form MGT-7 Due Date shall be 29th November of Subsequent financial year.

As per the recent Circular No.13/2019 dated 29.10.2019 issued by the Ministry of Corporate Affairs (MCA), the due date for filing Form MGT-7 (Annual Return) for the financial year ended 31.03.2019 has been extended up to 31.12.2019 without levy of any additional fees.

Filing of Annual Return Form AOC-4

Every Company is required to file its Financial Statements along with all other required details with the Registrar of Companies in Form AOC-4 within the period of 30 days from the date of completion of the company’s annual general meeting. 

As per the recent General Circular No.13/2019 dated 29.10.2019, the Due date for Filing Form AOC-4 for the year ended 31.03.2019 has been extended up to 30.11.2019.

Holding Annual General Meeting

Every Private Limited Company is required to hold a general meeting once in a year within a period of 6 months from the date of the close of the financial year.

Directors Report

Board of Directors of the company is required to disclose every year about his directorship/ his concern or interest in other companies (if any) every year.

Board Meetings

Every Private limited company is required to conduct its first meeting of the Board of Directors within a period of 30 days from the date of Incorporation. A clear 7 days prior notice from the date of the meeting shall be given to the directors intimating the date and purpose of the meeting.

Further, a minimum of four meetings of the Board of Directors is required to be held in a financial year not exceeding the 120 days gap between 2 meetings.

Filing of Income Tax Returns & Statutory Audit of Accounts

Every Private Limited Company registered in India is required to file its income tax returns which are duly audited by a chartered accountant at the end of the financial year on or before the due date (i.e.,30th September 2019 for F.Y.2018-19).

ACTIVE e-form

Every Private limited company which is incorporated on or before 31st December 2017 except the company which is specifically exempted, are required to file e-Form INC-22A  on or before 25th April 2019 which has been extended to 15th June 2019. However, a Private limited company can also file e-form INC 22A by paying an additional amount of Rs.10,000/- as a penalty.