Nowadays, private limited companies are one of the most sought after structures to initiate business propaganda for an entity. It is a smart choice to have maximum profits along with the benefits of limited liability and incorporated entity along with perpetual succession and separate legal entity. But along with these benefits, there are many Annual Compliances for Pvt Ltd Company that a private firm is liable for.
This is the point where your entrepreneurial skills come into the picture. It means how you can manage everyday operations of the business along with managing all the Private Limited Company Compliance. It is also suggested to take professional advice in order to get the complete idea of all the compulsory annual compliances for the smooth running of your business.
Here, we will provide you complete details about all the compliances that are mandatory for the Private organization. Before getting into that, let’s tell you about the recent news wherein the Ministry Of Corporate Affairs has strike off and outperformed almost around 2 Lakhs companies and more than 3 Lakhs directors were disqualified due to non-compliance of various provisions led by Company Act 2013. You must have understood by this that how important it is to follow all the compliances in order to get saved from heavy penalties and company closure.
List of Mandatory Private Limited Company Compliance
Here is the list of the entire mandatory compliances for a private company:
- First board meeting
It is mandatory to have the first meeting of the board of directors within 30 days from the date of the company’s incorporation. The meeting notice must be with the directors at least before 7 days of the meeting date.
- Subsequent board meetings
Every year at least 4 board meetings must be held and there should not be a gap of more than 120 days between two meetings.
- Filing of disclosure of interest by directors
Every director has to disclose all the changes in disclosures in Form MBP-1. It should also include the list of relatives in the firm according to the RPT definition, body corporate, all the interests and concerns in the company and the interest of shareholders. The Form MBP-1 should always be there in the company’s record. In every financial year meeting of the board members, the director should disclose this form.
- First auditor
The board of directors should appoint the company’s first auditor within the first 30 days of the incorporation of the organization. The first auditor shall hold the charge until the ending of the first AGM. In this case, it is not mandatory to file the ADT-1.
- Subsequent auditor
In the first AGM, the BOD will be appointing the auditor who will be held in charge till the ending of the 6th AGM. This has to be informed to the ROC by filing the ADT-1. Within 15 days of the appointment of the auditor, the ADT-1 form has to be filed by the company.
- Annual General Meeting (AGM)
It is mandatory for every company to organize the AGM every year before 30th September during business hours.
- Annual return filing through MGT-7
The private company has to file the annual return within the timeline of 60 days from the date of AGM. The annual returns are filed for the period from 1st April of the previous year to 31st March of the current year.
- Financial statements filing through AOC-4
It is mandatory to file the balance sheet by every private company along with the complete statement of the profit and loss account and the report of the director. This has to be filed within the 30 days of the completion of the Annual General Meeting.
- Statutory audit of accounts
All the accounts should be prepared by the company and have to get them audited at the end of the financial year by the Chartered Accountant. The auditor is responsible for providing the audit financial statement and the audit report for filing it to the registrar. If in case a company fails to follow any compliances, the consequences can be serious leading to a fine of high amount and even striking off of the company. So it is the owner’s responsibility to follow all the Annual Compliances for private limited Company and make sure the business goes on smoothly.