Annual Compliance for
Private Limited Company
After incorporating a Private Limited Company, there are some mandatory compliance that company have to take care of. Not complying with it can fetch a good amount of late fees, penalty or imprisonment also. Here’s a gist of mandatory requirements that company in addition to its Directors/ Key Managerial Personnel or any other professional should abide.
FACILITATION OF MEETING OF BOARD OF DIRECTORS
The first meeting has to be conducted within 30 days of incorporating a business after which a total of four meetings shall be held in each calendar year. There should not be more than 120 days of gap between two consecutive meetings.
PREPARATION OF MINUTES OF PROCEEDINGS OF MEETING
Every company within 30 days of the Board Meeting needs to file its minutes of the meeting and it shall be preserved permanently to add value in case of any dispute. The Meeting Minutes will be maintained at the Registered Office.
Appointment of First Auditor of the Company
Company shall within 30 days of the incorporation of the company shall appointment an Auditor or firm of Auditor who shall be appointed till the conclusion of First AGM.
ISSUANCE OF SHARE CERTIFICATES
The company is required to issue share certificate to the subscribers of memorandum within 2 months from the date of incorporation. Share Certificates shall be properly and duly stamped.
FILING OF DISCLOSURE OF DIRECTOR’S INTEREST AND DECLARATION OF DISQUALIFICATION
In the first Board Meeting, all the Directors are required to give disclosure about their interest in other business entity in Form MBP-1. This activity will continue for every first Board Meeting in a FY.
FILING DECLARATION OF COMMENCEMENT OF BUSINESS WITH ROC
This has to be done upon registration of the company. Form INC 20A mandatorily needs to be filed within 180 days from incorporation.
Conducting OF ANNUAL GENERAL MEETING:
A company shall conduct at least one AGM each year. The first Annual General Meeting shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.
For Eg: If a Company is incorporated on or before 31st December 2019, the First Annual General Meeting must be conducted within 9 months from the date of closing of 1st Financial Year (31.12.2019 – 31.03.2020), that is, by 31stDecember 2020.
If a Company is incorporated on or after 1st January 2020, First Annual General Meeting to be conducted within 15 months, i.e., by 31st December 2021.
Completion of annual filing of the company
A company has to mandatorily file the financial statements for a financial year in Form AOC-4 within 30 days of conclusion of AGM and Annual Returns in Form MGT-7 with the ROC within 60 days of the conclusion of AGM.
STATUTORY REGISTRATIONS
All statutory registrations like GST, PF, ESI, IEC, etc. must be made.
Preparation and Preservation of Statutory Registers of the Company.
Company have to maintain at all times statutory registers at the Registered Office of the company like Register of Members, Register of Directors, KMP, Register of Charges, Attendance Registers etc.
For any queries or requirements contact:
CS Arpit Garg
8447773833
arpitgargcs@gmail.com
Very nice Information.
If section numbers were added then it would have been perfect. Linking of these compliances with section is necessary as its basic part of life of an CS