Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated.
Mandatory Annual Compliance for companies
Managing the day to day operations of your business along with complying the corporate laws can be little taxing for any entrepreneur.
Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.
We have elaborated below some of the common compliances which a private limited company has to mandatorily ensure.
As per Companies Act, 2013 Companies requirements for Companies has been changed in comparison of Companies Act, 1956.
AOC-4: E-FORM FOR FINANCIAL STATEMENT-
Companies are required to file its Balance Sheet along with statement of profit and Loss account and Auditors Report in this form. The Attachments shall be
- Balance Sheet
- Statement of Profit & Loss account
- Directors’ Report
- Auditors’ Report &
- MGT-9.
Further , if any Secretarial Audit Report, Statement of subsidiaries/ Associates/ Joint Ventures as required under section 129 in the format of Form AOC-1 Company CSR policy and Details of salient features and justification for entering into contracts/ arrangements/transactions with related parties as per Sub-section (1) of section 188 ( Form AOC-2).
Time period for filing is within 30 days of Holding of Annual General Meeting.
Attachment:
- Extract of Annual Return, MGT – 9
Independent Form with numerous details of working details. A check list is prepared to fill. This form shall be an attachment to AOC -4 above. The said form carried a point number II on principle business activity of Company for mentioning NIC code or the product or services. . Details of such codes are provided in the Instruction Kit of MGT-7. Annexure C titled as Business Activity Code List.
- If Companies having any Subsidiary/ Associate/ Joint Venture Co – AOC-1
Every company which have any subsidiary/Associate/Joint Venture Company required to attach AOC-1 along with AOC-4.
- Information relating to Related Party Transaction- AOC-2
This is a form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013 including certain arms length transaction under third proviso thereto.
2. MGT-7: E-FORM FOR ANNUAL RETURN
Earlier Annual Return was required to be prepared in e-form 20B.Now, new form for Annual Return is MGT-7. This is a very lengthy form in comparison to earlier Annual Return under Schedule- V. There are two provisions relating to annual return one is ‘CERTIFICATION’; other one is ‘SIGNING’. Annual Return will be for the period 1st April to 31st March. The Attachments shall be
- List of shareholders & Debenture Holders and if any
- Approval letter for extension of AGM &
- Copy of MGT-8 (The annual return, filed by a listed company or a company having paid-up share capital of 10 crore rupees or more or turnover of 50 crore rupees or more, shall be certified by a Company Secretary in practice and the certificate shall be in Form No. MGT.8.).
Every Small Company shall file its Annual Return within 60 days of holding of Annual General Meeting.
PENALTIES RELATED TO ANNUAL FILLING
If the company fails to file its annual return before the expiry of the period specified even with the additional fee, then the Company shall be punishable with a fine which shall not be less than Rs.50,000/- but which may extend to Rs. 5,00,000/- and every officer of the company who is in default shall be punishable with
- imprisonment for a term which may extend to 6 months or
- with fine which shall not be less than Rs. 50,000/- but which may extend to Rs. 5 Lac, or
- with both
Default in Certifying Annual Return by the Practising Company Secretary
If a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made there under, he shall be punishable with a fine which shall not be less than Rs. 50,000 but which may extend to Rs. 500,000.
