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ANNUAL COMPLIANCE
The term compliance describes the ability to comply with orders, set of rules, or requests. A private limited company that has been incorporated in India must ensure the compliances concerning the Companies Act, 2013 are adequately met.The Companies Act, 2013 regulates the appointment, qualification, remuneration, and retirement of the Company's Directors and other aspects such as conducting board meetings and shareholder meetings. The RoC compliance for registered Private Limited Companies is necessary. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement.
All companies registered in India like a private limited company, one person company, limited company, and section 8 company need to maintain the annual compliances like annual returns and income tax return each year. Though Company Registration happens to be the most popular form of starting a business, various compliances need to be followed once the business is Incorporated. Managing the business's everyday operations while complying with the difficult corporate laws can be a task for the entrepreneur. So, it is always better to take the professionals' help and understand the legal requirement to ensure timely fulfillment of these compliances to waive off the penalties or fines. Here, we will look at some of the Common compliances that a private limited company has to ensure mandatorily.
Annual General Meeting
It is necessary to hold a meeting of the shareholders once every year within six months from the financial year's closing. AGMs are held for approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc. The meeting is held during business hours on a day that is not a public holiday. It shall occur at the registration of the company or the city, village, or town in which the registered office is situated.
Board Meeting
It is mandatory to conduct the first meeting of the Board of Directors of a company within 30 days of incorporation of the company. There should be four board meetings held every three months in which a minimum of 2 directors or 1/3 rd of the total number of directors, whichever is greater, are required to be present. Further, the meeting's discussion needs to be drafted and recorded in the minutes of the meeting and maintained at the company's registered office. A notice should be intimidated seven days in advance about the date and the purpose of the meeting.
Annual ROC Filings
The Private Limited Companies must file the annual accounts and returns disclosing the details of its shareholders, directors, etc., to the companies' registrar. As a part of the annual filing, the following forms are to be filed with the ROC: Form MGT-7 (Annual returns) must be filed within 60 days of holding the annual general meeting. Form AOC-4 (Financial statements) is to be filed by a private limited company within 30 days with the balance sheet and the statement of profit and loss account and Director report.
Service Advantage
Annual compliance gives a competitive advantage in the market. The company can use it as an advertising strategy in the business & assuring the investors or customers that business has been conducted diligently.The compliance describes the ability to comply with orders, set of rules. Under the provisions of the companies Act, 2013, various compliances will have to be completed every year.
