What regulations does the Private Limited Company have to follow?
The standards for private limited company compliance have changed significantly over time. For your convenience, we've included the private limited company compliance deadlines for the year 2022.
What kinds of compliances does a Private Limited Company need to make sure it always meets?
The criteria for compliance for a private limited company has seen significant shifts during the course of its existence. The private limited company compliance due dates for the year 2022 are summarised below for your reference.
Start of company Procedures for Compliance Description of Operations ( within 180 days)
Companies that are incorporated in India after November 2020 and have share capital are required to get a start of business certificate before beginning any kind of activity or exercising their borrowing rights. This is the case even if they do not intend to borrow money. After a company has been incorporated, the applicant must wait at least 180 days before applying for a certificate of beginning of operation.
In the event that the person is unable to get this certificate, there is a penalty that amounts to Rs. 50,000 for the business and Rs. 1000 per day for the directors for each day that the individual is in default.
Appointment of an Auditor (Within 30 days)
Within the first thirty days after their companies' registration, all Indian companies that are registered are required to hire a statutory auditor. In the event that the firm does not select an auditor, the company won't be granted permission to launch its commercial operations. In addition to that, there is a fine of Rs. 300 per month.
Report of Income Taxes
For the fiscal year 2021-22, individual income tax returns must be submitted on or by September 30, 2022, at the very latest.
MCA Form AOC-4
For the fiscal year 2021-22, the registered private limited firms are required to file MCA Form AOC-4 on or before November 30, 2022, at the latest. If you do not submit form AOC-4, you will be subject to a fine of Rs. 200 every day that you are late or in default.
MCA Form MGT-7
For the fiscal year 2021-22, you have until the 31st of December 2022 (at the very latest) to submit form MGT-7 to the MCA. A fine of Rs.200 per day would be imposed on the defaulting or delinquent party if MGT-7 is not filed.
It is required that the DIN eKYC or DIR-3 eKYC be submitted for each and every director of the firm. In order to complete DIR-3 eKYC, the Director is required to submit both a personal email address and a one-of-a-kind cell phone number. In the event that DIN eKYC is not submitted, a fine of 5000 Indian Rupees would be imposed.
Organize an annual general meeting.
It is required that a private limited corporation host an annual general meeting at least once each calendar year. Within six months of the close of the financial year, companies are expected to have their annual general meetings.
Managing Director's Report
In accordance with Section 134, a comprehensive report on the directors' activities will be compiled before it is submitted.
Compliance with the Required Statutory Audits
Examination of an organization's bank balances, bookkeeping records, and financial transactions are some of the things that are included in the statutory audit compliances. These audits are carried out to establish whether or not an organisation offers correct facts of its financial condition.
The corporation has a statutory auditor that has been appointed.
The yearly accounts will then be closed out by the company's auditors.
Annual ROC Filings
The companies' registrar requires private limited businesses to submit yearly accounts and returns, in which they disclose information about its owners, directors, and other relevant parties.
The ROC must receive the following forms on a yearly basis as part of the annual filing process:
Within sixty days of having the annual general meeting, a filing of Form MGT-7, Annual Returns, is required to be done.
A private limited company is required to file the Form AOC-4 (Financial statements) within thirty days, together with the accompanying balance sheet, statement of profit and loss account, and Director report.
The yearly corporate get-together
A meeting of the shareholders must take place at least once every year, and it must take place no more than six months after the end of the fiscal year.
Annual general meetings (AGMs) are convened for a variety of purposes, including the approval of financial accounts, the declaration of dividends, the appointment or re-appointment of auditors, the appointment or re-appointment of commission members, and the pay of directors.
The gathering takes place during regular business hours on a day that is not a nationally recognised holiday. It should take place at the location where the firm is registered, which might be the city, hamlet, or town where the registered office is located.
A Meeting of the Board
It is a requirement that the initial meeting of a company's Board of Directors take place within the first thirty days after the company's establishment.
A minimum of two directors or one-third of the total number of directors, whichever is larger, are obliged to attend the board meetings that take place every three months at a frequency of four times every quarter.
In addition, the meeting's discussion should be prepared, documented in the minutes of the meeting, and kept at the registered office of the firm.
It is recommended that a notice on the meeting's date as well as its purpose be provided seven days in advance.
Report from the Board of Directors
Each year, the Director is required to submit specific information on his directorship in other businesses. This can be accomplished by submitting a declaration to the corporation in written form on an annual basis.
Compliances With Regard To Income Tax
A payment of the advance tax every three months
Submission of the Returns for Income Tax
Tax audits are obligatory in cases when a company's annual sales or gross revenues were greater than Rs. One crore in the year before to the assessment year in question.
Report of the Tax Audit is being filed.
Additional compliances dependent on events
There are a variety of other compliances that, in addition to the yearly filings, need to be complied with whenever any event takes place in the organisation.
Here are some concrete examples of such occurrences:
Alteration in the company's authorised capital as well as the paid-up capital
Allotment of additional shares or transfer of existing ones Lending money to other businesses Lending money to directors
Full-time management position or permanent appointment When a bank account is established or closed, or when there is a change in the signatories of a bank account, the director and their payment will be affected.
if the firm's statutory auditors are replaced or new ones are appointed, the company is required to notify the relevant authorities.
It is important to file several papers with the registrar for each of these occurrences that take place within a certain time period. In the event that this is not completed, supplementary charges or penalties may be imposed. As a result, it is essential to satisfy such compliances within the prescribed time frame.
If a corporation violates the rules and regulations outlined in the Companies Act, both the firm and any of its members who are responsible for the violation will be subject to a fine for the length of time that the violation is allowed to continue.
Additional costs may need to be paid in the event that the yearly return is filed later than expected. As a result, it is advisable to meet the compliances on time whenever possible.
We, at StartupCA, are an advisor who is willing to devote their time to helping you meet these requirements.
A dedicated Compliance Manager will be assigned to your company to serve as a point of contact and help you in maintaining compliance requirements. Whenever you have an issue or concern about your company's compliance, you are welcome to contact StartupCA Compliance Manager at any time. To avoid the fines, you can call us to get better advice and price.