There are various compliance which are required to be followed once your business is incorporated.
We have elaborated below some of the common compliances which a Company has to mandatorily ensure:
Compliances under Companies Act, 2013
One time compliances
- As per sec 139(6) of the Companies Act, 2013, first Auditor should be appointed within 30 days from the incorporation of Company.
- Every Director shall at the first meeting of the Board in which he participates as a Director or wherever there is any change in the Disclosures already made, then at the first Board meeting held after such change, disclose his concern or interest in other companies or bodies corporate, firms or other associations of individuals in form MBP-1 as per the sec 184(1) of the Companies Act, 2013
- Adopting Rubber Stamp, letter heads, Stamps, Name Board, Sign Board, minutes sheets, Binders etc. and affix Board outside the Registered office as per Sec- 12(3)(c).
- Open Current Account of Company.
- Printed copy of Memorandum of Association and Article of Association and Share Certificates. (Now in Electronic Form).
- Statutory Books and Registers which a company should maintain.
Statutory Audit
Statutory audit is a legally required review of the accuracy of a company’s or governments financial records. The purpose of a statutory Audit is the same as the purpose of any other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book-keeping records and financial transactions.
Annual RoC Filings
- Annual filing of Returns and Balance sheet of companies is a part of Annual e-filing done with Registrar of Companies i.e, RoC.
- The Annual filing is compulsory for a Private Limited company, Public Limited Company, One Person Company and also for Limited Liability Partnership.
- The Balance Sheet should be accompanied by Auditor’s Report, Cash flow Statement and Schedules to the Balance Sheet. This Balance Sheet and P& L account has to be signed by a Practicing Chartered Accountant along with his seal and Membership Number.
An Annual Return should consists of the following:
- Debentures issued if any.
- Details of Transfer of Shares.
- The Annual Return has to be signed duly by the Directors of the Company and if the company is a listed Public Limited Company, then it should also be signed by the Company Secretary of the Company along with the Directors.
- Private Limited Companies are required to file its Annual Accounts and Returns disclosing details of its shareholders, directors etc to the Registrar of Companies. Such compliances are required to be made once in a year.
- As a part of Annual Filing, the following forms are to be filed with the ROC:
- Form MGT-7 (Annual Return): Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
- Form AOC-4 (Financial Statements): Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.
Annual General Meeting
- Every Private Limited Company is required to hold a meeting of its shareholders once in every year within a period of six months from the date of closing of the financial year.
- The primary agenda of an AGM includes approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, appointment and remuneration of directors etc.
- The Annual General Meeting shall be held during business hours on a day which is not a public holiday and shall take place at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.
Board Meetings
- The First meeting of the Board of Directors of a Private Limited Company shall be conducted within 30 days from the date of Incorporation of company.
- Further, minimum Four Board Meetings shall be held in a calendar year (one meeting in every 3 months). In case of a Private Limited Company which is classified as a “Small Company”, at least two Board Meetings shall be held in a calendar year (one meeting in every half year)
- Most of the start-up’s fall within the category of “Small Company”.
- Minimum 2 directors or 1/3rd of the total number of directors, whichever is greater, are required to be present in meeting of the Board of Directors. The discussions of the meeting need to be drafted and recorded in the form of “Minutes of the Meeting” and maintained at the Registered Office of the Company.
- Directors should be intimated about the date and purpose of the meeting by giving a notice at least 7 days in advance from the date of the meeting.
Directors’ Report
Every director has to disclose about his directorship in other companies every year. This shall be done by giving a declaration in writing to the company every year in a specified Directors’ Report format.
Maintenance of Statutory Registers and Records
A Private Limited Company has to maintain various statutory registers and records as required by the Company law such as Register of shares, Register of Members, Register of Directors etc. Besides, Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc are also required to be preserved by the Company.
Such records are to be kept at the registered office of the company and shall be open for inspection to its members during business hours. Also, the books of account of every company relating to a period of at least eight financial years should be preserved and kept in good order.
Other Event Based Filings
Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Instances of such events are:
- Change in Authorised or Paid up Capital of the Company.
- Allotment of new shares or transfer of shares
- Giving Loans to other Companies.
- Giving Loans to Directors
- Appointment of Managing or whole time Director and payment of remuneration.
- Loans to Directors
- Opening or closing of bank accounts or change in signatories of Bank account.
- Appointment or change of the Statutory Auditors of the Company.
Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.
Non-Compliance
If a Company fails to comply with the rules and regulations of the Companies Act, then the Company and every officer who is in default shall be punishable with fine for the period for which default continues. If there is delay in any filing, then additional fees is required to be paid, which keeps on increasing as the time period of non-compliance increases.
It should be noted that some of the Annual Filing Forms can also be revised but the fees for subsequent revised filing shall be charged, assuming it as a new filing.
We will be pleased to help you with statutory and mandatory compliance’s for your Private Limited Company. Get in touch with us at connect@taxaj.com or call us at 8961228919
Professional Charges: For all the Companies Act and ROC related compliances mentioned above, Our Professional Charges shall be 4500/- Quarterly
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Compliances under Income Tax Act, 1961
Filing of Income Tax Returns of Company & Directors: Every Company & its Directors are required to get their financials audited and their Income Tax Return filed by 30th September every year.
Professional Charges: For Filing Annual Income Tax Return of Company, Our Professional Charges shall be Rs. 6,500/-
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Professional Charges: For Filing TDS Return and Issuance of TDS Certificates, Our Professional Charges shall be Rs. 3500/- Quarterly. We will also help you calculate and pay the TDS on monthly basis at the appropriate rates as applicable.
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Compliances under Goods & Service Tax Act:
Every Assessee dealing in Sale of goods or Services, having Inter State Transactions or Turnover above Rs 20 lakh are required to get registered under GST Act. Thereafter, the GST is to be paid by 20th of next month and return is to be filed on Quarterly/Monthly Basis depending upon the Annual Turnover of the Assessee. The GST Common Return consists of
GSTR - 3B : Monthly 20th for Paying Taxes.
GSTR -1 : For details of Outward Supplies.
GSTR -2 : For details of Inward Supplies.
Professional Charges: For Filing GST Compliance, Our Professional Charges shall be Rs. 1500/- Monthly.
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Professional Charges: Professional Charges shall be Rs. 1000/- Monthly.
Package: We also offer a combined package of all the above mentioned services @ INR 5000 TO 10,000 per month (As per the growth of company) which includes:
- GST Compliance.
- TDS Compliance.
- Annual ROC Compliance.
- Expert Advisory.
- Annual Income Tax Return Filing of Company & Directors.
- PF Compliance, if any.
- ESI Compliance, if any.
- Professional Tax Compliance, if any.
Please feel free to revert us for any queries !
Regards,
Team TAXAJ Corporate Services LLP