Essential Compliances for Private Limited Companies and Required Document

Introduction

Ensuring compliance can be a challenging task for private limited companies in India. Meeting the extensive requirements of the Companies Act 2013—such as appointing directors, conducting shareholder meetings, and fulfilling other legal obligations. This article shall dive you through the essential compliances required for a Private Limited Company.

Compliances for Pvt Ltd Companies

Compliances for Pvt Ltd Companies include following legal rules like company registration, filing annual returns, paying taxes (GST, income tax), maintaining financial records, conducting audits, and following labor laws. Companies must also hold board meetings and comply with industry-specific regulations. Failure to meet these requirements can result in fines or penalties, making compliance essential.

Compliance Catalog for a Pvt Ltd Company

Having a clear checklist helps make compliance simple and smooth. Here’s a quick list of the important compliance requirements for a Private Limited Company.

1 .Appointment of Auditor

A company must appoint an auditor within 30 days of incorporation. The auditor finalizes accounts annually and can be appointed for 5 years. The appointment or change of auditor must be reported to the ROC within 15 days of the AGM.

2. Appointment of Company Secretary

Private companies with ₹5 crore or more paid-up share capital must appoint a full-time Company Secretary as per Section 203 of the Companies Act, 2013.

3. Commencement of Business Certificate

Companies registered after November 2019 must obtain this certificate within 180 days of incorporation.

4. Annual General Meeting (AGM)

Required once a year under Section 96. It must be held within 6 months before the financial year ends to approve financial statements and discuss key matters.

5. Board & Shareholder Meetings

The first board meeting must be held within 30 days of incorporation. Companies must hold 4 board meetings yearly, with a maximum gap of 120 days between two meetings. Small and OPC companies need only 2 meetings per year.

6. Director’s Disclosure of Interest (Section 184)

Directors must disclose any financial interest in other companies or firms in Form MBP-1 at:

• Their first board meeting as a director.
• The first board meeting of each financial year.
• Whenever there is any change in previously disclosed details.

7. Annual Filing

Companies must file:

• AOC-4 (Financial Statements): Within 30 days of the AGM
• MGT-7 (Annual Return): Within 60 days of the AGM

8. Statutory Registers Maintenance

Companies must maintain records of :

• Directors and their shareholdings
• Members and share transfers
• Minutes of Board Meetings and AGMs
• Meetings with creditors and debenture holders

Tax Compliances for Private Limited Companies

Private Limited Companies must follow certain tax rules to avoid fines and run their business smoothly. Here are the key tax requirements:

• Income Tax Return (ITR) : Every year, the company must file its income tax return with the government.
• TDS (Tax Deducted at Source) : If the company pays salaries, rent, or contractors, it must deduct TDS and submit it to the government. Quarterly TDS returns must also be filed.
• GST (Goods and Services Tax) : Companies registered under GST must file GST returns (like GSTR-1, GSTR-3B, GSTR-9) and pay GST on time.
• Advance Tax : If the company’s total tax is more than ₹10,000 in a year, it must pay tax in installments throughout the year.
• Tax Audit : If the company’s sales cross a certain limit, a tax audit is required to verify its financial records.
• Transfer Pricing Rules : If the company deals with related businesses in other countries, it must follow transfer pricing rules.
• Other Taxes : Depending on the business type, companies may need to pay professional tax, excise duty, or other specific taxes.

Important Documents Required for Compliance of Pvt Ltd Company

Here are a few essential documents that you will require for Compliance of Pvt Ltd Company :

• Director’s ID & Address Proof: PAN/Passport (self-attested)
• DIN (Director Identification Number)
• Company’s PAN Card
• Share Subscription & Allotment Proof
• MOA & AOA (Company Constitution Documents)
• DSC (Digital Signature) of Directors
• Registered Office Proof: Rent Agreement & NOC
• Annual Returns: MGT-7 (within 60 days of AGM)
• Financial Statements: AOC-4 (within 30 days of AGM)
• Changes in Shareholding or Capital Structure
• Director/Auditor Appointments & Removals
• Loans/Advances to Companies or Directors
• Bank Account Updates (Opening/Closing/Signatories)
• Income Tax Return Documents
• TDS/TCS Return Filings (if applicable)