Compliances for Private Limited Companies

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) We help to register Pvt Ltd Company and Pvt Ltd Annual Filing in India, including name approval, New GST registration, tax filing, and audits, ensuring full legal compliance. Benefits of Compliance for Pvt Ltd Company Getting Compliance done for your Private Limited Company offers several benefits, including : Legal Protection & Avoidance of Penalties : This helps a company avoid legal trouble and fines. It keeps the business safe from penalties and ensures smooth operations without legal issues. Enhanced Business Authority : A company always gains trust and recognition from the government and customers. It builds a strong reputation, making it easier to do business and grow. Investor & Stakeholder Trust : Proper compliance builds trust among investors and partners. It shows that the company is reliable and transparent, increasing chances of funding and partnerships. Tax Benefits : Filing taxes on time helps in getting deductions and saving money. It prevents fines and ensures that the company follows tax laws correctly. Permits Business Expansion : A company that follows rules can expand easily without legal issues. Compliance helps in mergers, getting loans, and entering new markets smoothly. Conclusion All Private Limited Companies must follow the rules set by the Ministry of Corporate Affairs (MCA). This applies to all companies, big or small. So, whether you're a startup or a big business, compliance and tax filings are a must. Following the right compliance practices or seeking professional help, businesses can focus on growth without legal worries. Suggested Read : Monthly Compliance for Pvt Ltd Company Appoint a Director in a Pvt Ltd Company Employee Structure of a Pvt Ltd Company Checklist for Pvt Ltd Company Compliance Director Appointment in Pvt Ltd Company FAQ You need to file AOC-4 (Financial Statements) within 30 days of the AGM and MGT-7 (Annual Return) within 60 days of the AGM. Other filings include income tax returns and audit reports (if applicable).Missing the deadline for filing compliance documents can lead to penalties, late fees, and legal issues. The company may also lose its good standing and face difficulties in future business operations.To keep your Private Limited Company compliant, file annual returns on time, hold board & AGM meetings, maintain records, pay taxes, and follow legal updates. You can also take expert help.Yes, you can file your Private Limited Company compliance documents online through the MCA portal or with the help of professional services like EbizFiling for easy and smooth filing.EbizFiling offers expert guidance, smooth online filing, and timely reminders to ensure your Private Limited Company stays compliant. With affordable pricing and dedicated support, we make compliance easy and stress-free!

Compliances for Private Limited Companies

Essential Taxes & Compliances for Pvt Ltd Company