Annual Filing & Compliance

Running a private limited company is an exciting and rewarding endeavour. However, it comes with its fair share of responsibilities, and one of the most important is annual compliance. Staying compliant is not only a legal requirement but also crucial to the success and prosperity of your business. Failure to comply can result in hefty fines, legal complications, and damage to your reputation. Let us see what it is exactly

To define, Annual compliance for a private limited company refers to a set of compliances a company must fulfil post-incorporation to carry out its operations. With the stated Companies Act 2013, compliances are to be adhered to each year. For instance, with annual compliance, the returns must be registered with the Income Tax Authority, MCA. Undoubtedly, it is a must-have to comply with the governments and other authorities’ rules and regulations when you form a private limited company. 

That's why we have created this comprehensive guide to annual compliance for private limited companies. 

In this guide, we will take you through everything you need to know to stay compliant, including the legal requirements, essential documents, filing deadlines, and common mistakes to avoid. So let's dive in and stay compliant to prosper!

Importance of Annual Compliance for Private Limited Company

The annual compliance for Private Limited Company calls for you to adhere to the said obligations, and to remain compliant with the rules and regulations. In the Initial step, you are to file an annual return with the ROC (Registrar of Companies), which will keep you in compliance with the law. With that in mind, the Annual General Meeting must be at least held once a year for 6 months from the end of the financial year. 

But, Companies that have just been incorporated should hold their first Annual General Meeting within 18 months of their incorporation date or 9 months after their fiscal year ends. Every Private Limited Company must file income tax returns declaring the income earned during this period by July 31, 2019. 

Decision: Is annual compliance mandatory for a private limited company or good to have activity?

As per the annual compliance for the private limited company, you must file annual compliance and other tax-related returns. Failing to which, it will lead to heavy penalties for your Company falling in the Defaulter list of ROC. Nonetheless, the next step is to understand the benefits and various implications.

It would be unfair not to highlight the perks of annual compliance for private limited company and how it contributes to shaping your firm's reputation. Nonetheless, let us have a look-

• Annual compliance for the private limited company as per companies act, 2013 plays a significant role in furnishing accountability and transparency within the organisation. It is by conducting regular audit periodic financial statements, that you get to foster integrity and solidify and trust amongst employees.  This transparency ensures that your company’s credibility attracts partners like a magnet. 
• Annual compliance is one of how you can stay at the top of your game as well as financial health. With regular audits, you get a sneak peek into the company’s performance along with ways in which you can improve. Such an examination can encourage you to run a comprehensive search while suggesting possible improvements and effective strategies for supporting growth. 
• As for the legal and financial benefits, annual compliance safeguards private limited company shareholders & directors, while saving them from personal liability.  With that being said, it reconsiders and acknowledges how personal assets need to be protected and remain separated from the company’s liabilities. 

Other advantages of Annual compliance for private limited companies are as follows-

• Avoid financial penalties
• Build trust & brand loyalty
• Better visibility of operations
• Avoid any legal implications
• Avoid being on the ROC defaulter list

Therefore, the story does not end here. There are various other ways in which annual compliance for private limited companies can benefit you. All that you require to run a successful organisation is by being compliant with the rules set by authorities.

Let us have a look at the Annual compliance for Private limited company Checklist, as it consists of the main components, which include the following- 

Filing Stay Compliant and Prosper: A Comprehensive Guide to Annual Compliance for Private Limited Companies

The Annual compliance for the private limited company as per companies act, 2013 focuses primarily on the following points, which are as follows-

• Maintain Accounts and Prepare financial statements:- The company book of accounts primarily include deeds, documents, writings and vouchers. As of the latter, it is crucial to maintain financial accounts, which carry details such as balance sheet, income statement, profit & loss, etc. It is to be submitted at the end of each financial year.
• Annual returns:- Once a year before 30th September. Annual return consists of the information and documents that include:
• Filing of annual roc returns:- The incorporated companies ought to have  e-files for the audited financial statements along with the books of accounts under Registrar of Companies (ROC).
• Filing of income tax returns:- All companies registered under the Companies Act must file for income tax returns every year on or before the 30th of September. 
• Maintenance of statutory registers:- As per the Companies Act of 2013, companies ought to maintain statutory registers, for keeping records of the company. 

Therefore, you must adhere to them to remain compliant with the said rules to avoid any major trouble.

A company cannot operate if it does not have essential documents required for private limited company compliance. Therefore, it becomes crucial to refer to the necessary details, without which it is a job half done. The Annual compliance for the private limited company as per the companies act, 2013 asks you to refer to the mentioned documents, Let us have a look-

• Private Limited Company Certificate of Incorporation, PAN Card, Memorandum of Association, and Articles of Association
• It is recommended that independent auditors audit financial statements
• Board Report and Audit Report Independent auditor’s report and Board report are also required.
• One of the directors must submit a DSC or Digital Signature Certificate of Director Valid and Active Digital Signature Certificate or DSC.

Compliances form an important part of Private Limited company regulations and needs to be fulfilled with the procedure at place. The question is how to attain the annual compliances and what are the possible ways to do so. Allow us to help you in the process- 

Step 1:- Corpseed received your request for Private Limited Company compliance

Step 2:- We will assign you a dedicated resource who is professionally skilled in company compliance. The allotted resource will help you to maintain compliance for your Private Limited Company and streamline the process. You can get in touch with the assigned resource at any point in time for consultation and assistance regarding compliance throughout your journey with Corpseed.

Step 3:- Our resource will help your Private Limited Company to maintain accounts and prepare the financial statement for each year.

Step 4:- Our resource will collect all the required documents/information and will complete all the below-mentioned compliance activities for your Private Limited Company.

• Maintain Accounts and Prepare financial statements
• Annual returns
• Annual General Meeting
• Board meetings
• Director reports
• Annual Filing of Forms
• Yearly Forms by Directors

Step 5:- Our resource will collect all the required documents/information and file your Private Limited Company income tax return with ROC (Registrar of Companies) along with the mandatory documents after getting a final confirmation from your finance team if required.

Step 6:- Our resource will help your Private Limited Company in accounts audit.

Step 7:- Our resource will draft minutes of meetings, notices and will also maintain the statutory register.

Step 8:- Once the Above-mentioned steps are complete, your Private Limited Company is compliant with the Companies Act 2013.