Annual Compliance For Private Limited Company | Ebizfiling from devesh gehani's blog

  Introduction 

The Annual General Meeting must be conducted within 6 months from the closure of the financial year i.e., 30th March every year. Once the AGM is concluded, the Private Limited Company compliancesmust file annual returns, financial statements, DIN eKyc and any other compliance with the Registrar of the Company.

 What is a Private Limited Company? 

A Private Limited Company is a separate legal entity from its directors or shareholders. For it to remain operational, it needs to be kept in check by submitting regular paperwork to the Ministry of Corporate Affairs (MCA)

 Annual Compliance for Private Limited Company 

1. Conduct an Annual general meeting (AGM)

Companies should hold their AGM within six months from the closure of the financial year. The AGM should be conducted with the purpose of preparing financial statements, annual returns, director's reports, etc.

2. Appoint an auditor

All companies are to appoint a statutory auditor within 15 days from the date of AGM and submit the ADT-1 Form with the auditor's information. The fine for delay of filing this form depends on the days of delay like if up to 30 days the then fine is 2 times of normal fees or for more than 30 days and for less than 60 days the then fine is 4 times of normal fees and so on.

3. File the financial statement of the Private Limited Company

For submitting the company's financial statements, the AOC- 4 Form must be filed within 30 days of the date of AGM. Failure to file it will result in a penalty of Rs.100 per day. This form is an annual compliance for a Private Limited Company.

4. File the annual returns of the Private Limited Company

For submitting the company's annual returns, the MGT-7 Form must be filed within 60 days of the date of AGM. Failure to file it will result in a penalty of Rs.100 per day. This form is an annual compliance for a Private Limited Company.

5. File the DIN eKYC

It must be filed for every director of the company. The Director must include a separate mobile number and a personal email address in DIR-3 eKYC. Failure to submit DIN eKYC will lead to a fine of Rs.5000. It is mandatory compliance for a Private Limited Company.

6. Prepare the Director's report

It is a financial document that was filed by very a Private Limited Company in India. All the information required by Section 134 will be included in the preparation of the Director's report. The purpose of a directors' report is to provide the shareholders with the company's affairs, including those of its subsidiaries, and the type and extent of the company's activity.

7. File Income tax return for the Private Limited Company

According to the Income Tax Act of 1960, all companies are required to file ITR-6. It must be filed on or before 30th October (for the year 2022). It should be noted that the ITR-6 deadline is constantly shifting and is announced by the authorities each year.

 Conclusion 

In the absence of professional guidance, Private Limited Companies frequently experience compliance stress and must incur penalties. Therefore, you must comply with the filing of the annual compliance for Private Limited Companyas per the due date announcement by the authorities because it will help you build goodwill for your company.