Compliances Private Limited Company
Private companies are those companies that are owned by private individuals and there will no government interference in the operation of the company. A private company trades its shares with a small group of shareholders and does not trade publically.
Every company whether it is private or public comes under the Companies Act 2013, the act should have some compliances according to the prescription.
Benefits of filing compliance for Private Companies
- The company by fulfilling the requirements of ROC and filing compliance regularly increases its reputation in the eyes of the public and also attracts more investors to the company.
- It reduces the burden of more compliances by filing the basic compliances on a date.
- Fulfilling the compliance on time reduces the risk of facing penalties for the company.
So these are the benefits for filing private company compliance with ROC
Filing compliance is mandatory for all types of companies. It will be done with the Ministry of Corporate Affairs or MCA under the registrar of companies which has 22 branches all over India. If the company fails to file compliances it has to face some penalties which are charged per day till the company pays it.
There are certain prescribed lists of compliance for private companies which should be made as soon it receives an incorporation certificate.
List of Compliances for private limited company
After incorporation of a private company, it has fulfilled certain compulsory compliance which is listed below,
- Within 30 days of incorporation of a private company, you should appoint an auditor for 5 years by filing ADT – 1 form with the registrar of companies [ROC].
- The private company should conduct a minimum of two board meetings should be conducted. At least 2 directors of 1/3rd of the total directors must be present at the time of the meeting and they should be informed 7 days before the date of the meeting and the minutes of the meeting must be preserved.
- Annual General Meeting [AGM] should be conducted once a year and there should be a gap of 15 months between 2 AGM . The intention of conducting an AGM is to discuss remuneration, declaration of dividends, auditor appointment, etc.
- The directors of the private company should file MBP – 1 with the ROC for disclosing their interests in any other company and it should be filed every year at the first board meeting.
- The directors of the company should file disclosure of non – disqualification by filling up form DIR – 8 and it should be done every year.
- The company should appoint a statutory auditor for auditing and preparing your company’s audit report for the financial year and it is mandatory.
- After conducting AGM within 60 days, the company has to file form MGT – 7 which includes certain details which can be read by the public such as,
- Information regarding board meeting.
- Details about the company and its branches.
- List of shares and debenture holders.
- Information regarding directors, members, etc.
- Director’s remuneration.
- Company’s any legal matters.
- Liability of the company.
- Any penalties imposed on the company.
- Certificate of compliance.
- The company has to file form AOC – 4 which includes details regarding financial transactions made in the year with the ROC.
- The company should prepare its accounts and get them audited by a chartered accountant.
- Maintain statutory registers, minutes of the meeting, and other reports should be preserved mandatory.
So these are the compliances that should be maintained by the company.
There are certain noncompliances that are event-based and accordingly, they should be maintained such as,
- TDS or TCS payments.
- GST filing.
- IT returns.
- Tax audits.
- Advance tax payments.
- Other payments.
These are the event-based compliance to be filed with ROC at the time of happening.