Annual Compliances For a Private Limited Company | ROC | MCA | Business Registration | Vakilsearch

Summary

This video outlines the essential annual compliance requirements for private limited companies in India, emphasizing the importance of timely filings and legal obligations. It covers key processes such as submitting annual returns, financial statements, and forms AOC-4 and MGT-7, as well as appointing an auditor, holding AGMs, and completing DIN eKYC. Failing to meet these deadlines can result in significant penalties. The video also highlights the need for directors' reports and offers expert assistance for companies to ensure compliance and avoid legal repercussions, helping businesses focus on growth while staying legally compliant.

Takeaways

• 😀 Every private limited company in India must complete annual filing with the Ministry of Corporate Affairs (MCA), regardless of size.
• 😀 Annual returns must include important details such as directors, shareholders, office address, share capital, and any changes in shareholding patterns.
• 😀 Financial statements must be filed to show the company's financial performance, including income, expenses, assets, and liabilities.
• 😀 New businesses (registered after November 2019) must obtain a Business Commencement Certificate within 180 days to avoid penalties.
• 😀 An auditor must be appointed within 30 days of company incorporation, and failure to do so prevents business commencement.
• 😀 Timely income tax return filing is essential, but belated returns can still minimize penalties if filed promptly.
• 😀 Companies must hold an Annual General Meeting (AGM) within six months after the financial year ends, with a deadline of September for March-end companies.
• 😀 Form AOC-4, including financial statements, must be filed within 30 days after the AGM. Late filing incurs a penalty of ₹200 per day.
• 😀 Form MGT-7, which includes income and expenditure data, must be submitted within 60 days of the AGM to avoid a penalty of ₹100 per day.
• 😀 Directors must complete their Director Identification Number (DIN) e-KYC on time, or face a penalty of ₹5,000.
• 😀 Directors' reports, which outline the financial performance and activities of the company, must be submitted to the ROC and MCA on time to avoid penalties.

Q & A

What is the annual filing process for private limited companies in India?

The annual filing process involves submitting annual returns and financial statements to the Register of Companies (RoC). This ensures compliance with the Ministry of Corporate Affairs (MCA) and includes details like company directors, shareholders, financial performance, and any changes in the shareholding patterns.

What are the consequences of not filing annual returns and financial statements on time?

Failing to file annual returns and financial statements on time can result in severe penalties and legal repercussions for the company, including fines and potential delays in business operations.

What is the business commencement certificate, and when is it required?

A business commencement certificate is required for companies incorporated after November 2019 with share capital. It must be obtained within 180 days of the company's incorporation. Failing to obtain the certificate on time can lead to fines and penalties for both the company and its directors.

How soon must a company appoint an auditor after incorporation?

A company must appoint an auditor within 30 days from the date of incorporation. This appointment must also be documented in the company's annual filing.

What happens if a company fails to appoint an auditor on time?

If a company fails to appoint an auditor within 30 days of incorporation, it cannot commence business operations. Additionally, a penalty of ₹300 per month will apply for the delay.

What is the deadline for filing income tax returns for a company?

Companies must file their income tax returns by the due date. If the deadline is missed, a belated return should be filed as soon as possible to minimize penalties.

What is the deadline for holding an Annual General Meeting (AGM)?

The Annual General Meeting (AGM) must be held within six months after the financial year ends. For companies with a financial year ending in March, the deadline is September 30th.

What is Form AOC-4, and when should it be submitted?

Form AOC-4 is an annual report that includes a company's financial statements and disclosures. It must be filed with the RoC within 30 days of the AGM. Failing to do so can result in a penalty of ₹200 per day.

What is the deadline for submitting Form MGT-7?

Form MGT-7, which contains the company’s income and expenditure data, must be submitted within 60 days of the AGM. If not filed on time, a penalty of ₹100 per day will be imposed.

What is the Director Identification Number (DIN), and why is eKYC important?

The Director Identification Number (DIN) is a unique number assigned to each director to identify them. Directors are required to complete their eKYC process within a specified time frame to avoid a penalty of ₹5,000.