Every year, companies in India have to follow the rules established in the Companies Act of 2013. Among these responsibilities include maintaining statutory records and submitting yearly reports, financial statements, and ROC forms. Whether or not they are actively running business, all companies have to submit yearly reports to Ministry of Corporate Affairs (MCA). Those who follow quickly and correctly can save a lot of time and money; those who don't may be called "defaulting" or "inactive." A company's professionalism and financial discipline show in its credibility with banks, investors, and stakeholders as it builds trust. Legal N Tax has made it easy for you to satisfy your statutory obligations instead of stressing about the challenging and costly procedure. This lets you focus on growing your company. You can rely on us to be your partner in the compliance management.
Significance of Annual Compliances
Annual compliance is not only a legal requirement but also very necessary for maintaining your company's reputation and standing in the marketplace. Here are several justifications for why being compliant should come first:
- Legal Requirement:Regardless of the kind or volume of operation, all companies registered in India are required to follow the yearly compliance standards established by the Companies Act, 2013.
- Prevents Directors from Being Disqualified:Director of the company risk having their directorships restricted for up to five years if they are disqualified due to non-compliance.
- Builds Business Credibility:The company's credibility will be elevated among investors, banks, and prospective business associates when its statutory filings are on time anda spotless compliance record is maintained.
- Prevents Financial Burden from Penalties:The MCA impose heavy fines and late fees for latefilings, which can put financial strain on businesses.
- Maintenance of Company Status as Active:If a company doesn't file its yearly reports, the MCA records will show that it is "defaulting" or "inactive," which can cause future financial or legal proceedings.
List of Required Annual Compliances for Private Limited Companies
Under the Companies Act, 2013, companies in India must meet numerous important yearly compliance requirements. These guarantee financial discipline, appropriate record-keeping, and openness. Legal N Tax helps in providing annual compliance service in Delhi. Here is a thorough summary of the required annual compliances for any Private Limited Company:
i) Form ADT- 1: Appointment of Auditor
Every company is required to appoint a statutory auditor within 30 days of incorporation. This appointment is filed before the Registrar of Companies (ROC) through Form ADT-1. The auditor plays a critical role in auditing the financial statements annually.
ii) Form DIR-3 KYC: Director KYC
All directors holding a Director Identification Number (DIN) must complete their KYC annually by filing Form DIR-3 KYC before the due date. Non-compliance can lead to deactivation of DIN and penalties.
iii) Board Meetings and Maintenance of Minutes
A minimum of four board meetings must be held every financial year (with a gap not exceeding 120 days between two meetings). Proper documentation of meeting minutes is essential for legal compliance and internal governance.
iv) Form AOC-4 and MGT-7: Annual Filing with ROC
Form AOC-4: This form is used to file the company’s financial statements (including Balance Sheet, Profit & Loss Account, Director’s Report, and Auditor’s Report) with the ROC.
Form MGT-7: This form contains the company’s annual return, including details of shareholding, directors, and other statutory information. Both forms must be filed within specified deadlines to avoid penalties.
iv) Preparation of Financial Statements
Companies are required to prepare financial statements at the end of every financial year in accordance with Schedule III of the Companies Act. The financial statements are approved in the board meeting and then adopted by the shareholders in the Annual General Meeting (AGM).
v) Statutory Audit
All Private Limited Companies must conduct a statutory audit of their books of accounts, irrespective of turnover. The audit ensures the accuracy of financial records and is a mandatory requirement before filing AOC-4.
Failure to comply with any of the above requirements can result in heavy fines, penalties, and legal consequences.
Timely compliance with annual filing requirements is essential to avoid penalties and maintain a company’s legal status. Each form has a specific due date, and missing these can result in substantial late fees and legal repercussions. For instance, ROC forms like AOC-4 and MGT-7 must be filed within 30 and 60 days of the Annual General Meeting, respectively. Non-compliance attracts a penalty of ₹100 per day, per form.
How Legal N Tax Helps in Annual Secretarial Compliance
- Management of Complete Compliances:We manage the complete process of annual compliance service in Indiafrom preparing documents to filing returns andensuring all thepost incorporation compliances of private limited company under the Companies Act.
- Customized Compliance Calendar:Our team customized the compliance calendar as per the requirements of the company needs with clear deadlines, so nothing is missed throughout the financial year.
- Expert Assistance in Drafting & Filing:Our team of CAs, CSs, and professional consultant for annual compliance service in Delhiassists in drafting board resolutions, preparing financial statements, and filing forms like AOC-4, MGT-7, and DIR-3 KYC.
- Trustworthy Partner for Your Compliance Needs: Legal N Tax is here to help you concentrate on expanding your company even as we make sure you remain legally compliant.
Why Legal N Tax is the best choice for annual compliances of the company?
- Expert Team of Professionals:We have a dedicated team of experienced Chartered Accountants (CAs), Company Secretaries (CSs), and legal professionals to handle all aspects of the annual compliances of the company.
- Fast Turnaround Time:We deliver prompt services and our team ensures that all the annual compliance requirements are met well within the due dates.
- Dedicated Support Team:Our knowledgeable and professionalconsultant for annual compliance service in India is always available to assist you with queries, updates, and guidance.
We Legal n Tax are here to simplify your company annual compliance journey. Contact us now at info@legalntaxindia.com
