Compliances :- Private Limited Companies
Private Limited Companies in India are required to adhere to various annual compliance requirements to maintain their legal and financial standing. These compliances ensure that the company operates in accordance with the laws and regulations governing corporate entities in India. Here are the key annual compliance requirements for a Pvt. Ltd. Company in India:
Annual General Meeting (AGM): The company is required to hold an AGM within six months from the end of the financial year (usually by the end of September). During the AGM, shareholders review the company's financial statements, appoint auditors, and discuss other important matters.
Financial Statements: The company must prepare and file its financial statements, including the Balance Sheet, Profit and Loss Account, and Cash Flow Statement, within 30 days from the AGM.
Annual Return: The company needs to file its annual return with the Registrar of Companies (ROC) within 60 days from the AGM. The annual return includes details about the company's directors, shareholders, capital structure, and other relevant information.
Income Tax Return (ITR): The company must file its income tax return for the financial year by the specified due date (usually on or before September 30 of the assessment year).
Audit: Pvt. Ltd. Companies are required to get their accounts audited by a qualified Chartered Accountant each financial year.
Directors' Report: The company must prepare a Directors' Report, which includes various details about the company's operations, financial performance, and compliance status.
Statutory Registers: The company must maintain various statutory registers, such as the Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, etc.
Compliance Certificate: The company must obtain a compliance certificate from a Company Secretary in Practice and file it with the ROC.
Form DIR-3 KYC: Every Director of the company must file Form DIR-3 KYC annually with the ROC by updating their personal details.
Payment of Statutory Dues: The company must ensure timely payment of various statutory dues, including income tax, GST (if applicable), and other regulatory fees.
It is crucial for Pvt. Ltd. Companies to comply with these annual requirements to avoid penalties, legal complications, and potential dissolution of the company. Non-compliance can lead to hefty fines and can negatively impact the company's reputation.