Overview of Annual Compliance for Private Company

A Private Company is a legal institute enjoying a separate personality which requires controlling its active status through the regular filing with MCA. For every business, it is compulsory to file an annual return and audited financial reports with MCA for every fiscal year. The RoC filing is necessary irrespective of the turnover, whether it is zero or in crore. Whether a single business is undertaken or none, annual compliances for private limited are compulsory for every certified company.

Both the forms are applied to report the activities and financial date for concerned Financial Year. The due terms for annual filing of a company are based on the time of the Annual General Meeting. The perpetual failure may lead to the elimination of the company’s name from RoC’s register, including incompetence of directors. Also, it has been noticed that MCA has actively taken bold measures for dealing with any such failures. The compliances relevant to the company could be segregated into two sections Mandatory Compliances and Event-Based Compliances.

Mandatory Annual Compliances

We have developed some of the mandatory agreements that a private Limited company must ensure:

First Board Meeting:

First Meeting of Board, along with Directors, is expected to be held within 30 days of Incorporation of Company. Declaration of BM must be sent to each director at least seven days ere the meeting.

Subsequent Board Meetings:

Minimum of 4 Board Meetings to be checked every year with not more than 120 days gap within two meetings.

Filing Of Acknowledgement Of Interest By Directors:

Every director at:

• 1. The first meeting in which he engages as director; or
• 2. The first meeting of Board in each FY; or
• 3. Whenever there is a variety in disclosures shall reveal in Form MBP 1 (along with a list of relatives and attention of relatives in the Company as per RPT definition), his interest or interest in any company, body corporate, organizers/firms or other organization of individuals (including shareholding interest). Form MBP‐1 shall be kept in the documents of the Company.

Stipulations of Non-Compliances

Establishing A Company’s Credibility

Compliance of law is the fundamental requirement for any company—the date of the company’s annual return filing performed on the Master Data on the MCA portal. Ministry tenders, loan support or for similar other purposes, the consistency in compliance is an important criterion to measure the reliability of an organization.

Invite Investors

While attracting funds for a corporation from the investors, the investors demand all financial histories and date before settling the proposal. The investors may either request the company directly or can also check the economic reports from the MCA portal. Investors also lead to favour companies with regular compliance reports.

Maintain Active State And Avoid Punishments

Constant failure in filing the return turns the company status to failure and charges it with heavy penalties. The company may also be disclosed as defunct or removed from the RoC. The concerned directors are also excluded and debarred from their further appointment. Since July 2018, a supplementary fee of ₹100 for each day of delay has been levied till the date of filing.

Documents Required for Annual Filing of Company

• 1

  Incorporation Certificate

  • 1

    PAN Card

  • 2

    Certificate of Incorporation and

  • 3

    MoA – AoA of Private Company

• 2

  Audited Financial Statements

• 3

  An independent auditor must audit financial Statements

• 4

  Audit Report & Board Report

• 5

  Independent auditor’s report and Board report must be concerned

• 6

  DSC of Director

• 7

  Accurate and active DSC of one of the directors must be provided and presented