Blend in business ethics with expert services for Private Limited Company Compliance
A Private Limited Company is a distinct legal entity that must maintain its active status through regular filings with the MCA. It is mandatory for every company to file an annual return and audited financial statements with the MCA each financial year. These filings are required regardless of the company’s turnover, whether it’s zero or in crores. Whether or not any transactions are conducted, annual compliance is compulsory for all registered companies.
Both filings are used to report the company’s activities and financial data for the relevant financial year. The due dates for these filings are determined by the date of the Annual General Meeting (AGM). Persistent failure to comply may result in the company’s name being struck off from the RoC’s register, and the disqualification of its directors. The MCA has been taking significant action against such non-compliance, enforcing strict measures to address these issues.
Compliance with the law is essential for the smooth operation and credibility of any business. The date of the company’s annual return filing is prominently displayed on the Master Data section of the MCA portal, serving as a public record. For processes like government tenders, loan approvals, or other similar activities, regular compliance is often a key criterion used to assess the credibility and reliability of an organization. Maintaining a consistent track record of compliance not only ensures legal standing but also enhances the company’s reputation in the market.
When seeking funds for a company, investors typically request all financial records and data before finalizing any investment proposal. Investors may approach the company directly for this information or access the financial records via the MCA portal. Companies with a track record of regular compliance are often viewed more favorably, as consistent filing and adherence to regulatory requirements signal transparency, good governance, and financial integrity. This can significantly increase the likelihood of securing investment.
Continuous failure to file the annual return and financial statements results in the company being marked as “default” on the MCA portal, which attracts heavy penalties. In extreme cases, the company can be declared defunct or struck off from the RoC register. Additionally, the directors may be disqualified and debarred from holding directorships in other companies.
Since July 2018, an additional fee of ₹100 per day of delay is levied for every day the filing is delayed, continuing until the documents are successfully filed. This penalty structure significantly increases the financial burden on the company for non-compliance.
PAN Card, Certificate of Incorporation and MoA – AoA of Private Compan
Financial Statements must be audited by independent auditor
Independent auditor’s report and Board report must be provided
Valid and active DSC of one of the directors must be provided
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Within 30 days from the date of AGM
Within 60 days from the date of AGM
Yes, RoC compliance for Private Limited Companies are necessary for every registered company. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement. The annual compliance is due after the AGM of the company since its first financial year.
Since July 2018, companies failing to follow the statutory compliance for Private Limited will be charged ₹100 for each day of a delay till the actual date of filing. There is no ceiling limit to an additional fee. For continuous failure, penalty apart from the additional Government fee can be levied on both – company and directors, including the imprisonment.
Audited financial statements are necessary for every company since its incorporation. The company must file the audited statements only. Also, non-audit of financial statement is not an excuse to delay the annual filing.
A company can opt to appoint a statutory auditor either for a period of five consecutive years or till the conclusion of next AGM. Therefore, an appointment of the statutory auditor cannot be considered as a part of annual compliance.
As per Companies Act, 2013 it is mandatory to submit the signed Director Report for every financial year with MCA by filing an Annual return of the company. The Director Report is considered as an attachment for the form MGT-7.
MGT-9 is an attachment to the company’s director report which is an extract of MGT-7 and addresses the following :
1. Registration and other details like CIN, date of incorporation, companies name and address of a registered office
2. Principle business activity of the company
3. Of holding, subsidiary, and associate companies
4. Shareholding pattern
5. Indebtedness of the company
6. Remuneration of managing directors, directors and/or manager, and key managerial personnel.
7. Penalties/ Punishment/ Compounding of offense.
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Blend in business ethics with expert services for Pvt.Ltd. Compliance
