Incorporated your Private Limited Company?

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Every Private Limited Company registered under Company Act 2013 has to follow certain ROC Compliance after incorporation. These compliance are necessary in order to ensure that company is managed properly and in a lawful way.

These compliance are divided into 2 parts:

  • Mandatory Compliance
  • Event Based Compliance

The following compliance are necessary for every Private Limited Company to adhere:

Mandatory Compliance

Following are the mandatory compliance which is mandatory to be followed failing of which can lead to use huge penalties. These mandatory compliance are needed to be followed once in a year.

  • Board Meeting of Directors

Board Meeting of Directors are required to conduct meeting 4 times in a year and the interval between two board meetings should not exceed a period of 120 days.

In case of small companies means according to Companies Act 2013 any companies whose paid-up capital less than Rs 50 Lakhs and also annual turnover is less than Rs 200 Lakhs.

For small companies there is an exception which means they can conduct two board meetings instead of four. It is mandatory to have 2 directors at the meeting and if there are more than 2 directors then, 1/3 rd of the directors should attend the meeting.

Directors should be given notice before 7 days and the detailed discussion should be recorded as the file and file should be given to the registered office of the company.

  • Appointment of Auditor:

Appointment of Auditor is a mandatory thing for the Private Limited Company.

An Auditor is an individual recognized as the Chartered Accountant (CA) and the auditor is responsible to examine the accounts of the company and financial condition of the company.

As provided under the Companies Act, 2013, an auditor needed to be appointed for a term of 5 years. And if it is a new business, the auditor has to be appointed within one month of the incorporation of the company. It is one of the most important part of the private limited compliance.

  • Annual General Meeting (AGM):

Annual General Meeting is mandatory to be held within 1 year. But it should be held six months before end of financial year. The main aim of Annual General Meeting is to discuss the approval of financial statements, appointment of auditors, salary or remuneration for directors etc.

AGM should be held on the business hours on the registered office not on the public holidays.

  • Annual Returns for AOC & MGT7:

There are number of annual returns forms such as AOC & MGT 7 needed to be filed and required to be certified by Chartered Accountant. Every Private Limited Company is needed to disclose the details of annual returns within 60 days and the days will be counted from last annual meeting.

  • Financial Statements:

Every Private Limited Company needs to disclose the details of financial statements like profit & loss statements within 30 days from last annual meeting.

  • Reports of directors:

Every directors is needed to submit the reports containing details about the directorship in other companies every year. This should be in writing in a special format.

  • Income Tax:

Every Private Limited Company needs to file ITR-6 every year and finally filing of tax audit.

  • Maintenance of Records:

Every private company are required to maintain proper records and registers of directors, members, shares, etc. And such documentations are to be kept at the registered office of the company.

Event Based Compliance

Event Based Compliance are the compliance that private limited company need to follow on certain event.

  • Appointment of New Director
  • Resignation of Directors
  • Appointment of Managing Directors
  • Appointment / Change in Auditor
  • Change of Name of the Company
  • Change of Object of the Company
  • Registration / Modification or Satisfaction of Company
  • Issue of New Shares

If these compliance is not followed by the company it can lead to penalty upto 200 Rs per day.

If you think compliance is expensive, then try non-compliance

InCFO provides these compliance at the very affordable cost starting @1,999/- INR Annually.

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Subrato Mukherjee

I am Professional CA with experience of more than 10+ years. My aim is to help startups and companies to help in various financial needs which is needed to expand the business.

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Subrato Mukherjee

I am Professional CA with experience of more than 10+ years. My aim is to help startups and companies to help in various financial needs which is needed to expand the business.