List of Compilances for a Private Limited Company
A private limited Company is a famous form of limited liability form of ownership. The minimum number of persons required to incorporate and operate a private limited company is two. There is no restriction on the minimum amount of paid up capital of the company. The Unique features of a private limited company like limited liability of the shareholders, ability to raise equity funds, separate legal entity, perpetual succession make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.
MANDATORY ROC COMPLIANCES
There are certain compliances that a Private Limited Company is required to carry out in its working period. Some of the compliances have been mentioned below:
- Board Meetings: The first Board Meeting of Private Limited Company is required to be held within 30 days of its incorporation. Thereafter, a company is required to hold at least 4 board meetings in a year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board. However, One Person Companies, Small Companies, Section 8 Companies and dormant companies are required to hold only one Board meeting in each half calendar year and the gap between such two meetings shall not be less than 90 days. Meeting of the Board of Director can be called by giving a 7 days notice to the Directors. Board meetings can also be convened at a shorter notice. The quorum for a Board Meeting is 1/3rd of total strength OR 2 (Two) Directors, whichever is higher.
- Annual General Meeting: Every company other than an OPC is required to hold an Annual General Meeting of its members for a financial year for the purpose of laying down the financials and board report, appointment of auditor, directors appointment etc. The first AGM of the company must be held within nine months of the end other financial year. Whereas the consecutive AGMs must be held within six months of the end of the financial year. However, the maximum gap between two AGMs shall not exceed Fifteen months. Annual General Meeting can be called by giving a 21 days notice to the members. AGMs can also be convened at a shorter notice.
- Disclosure of Director’s Interest: All the directors of a company are required to give a notice of Interest in any other entity in Form MBP-1 to the company every year in its first Board Meeting.
- Filing of Income Tax and Annual Return: Every company is required to get its accounts audited by an auditor and file its Income Tax return with the Income tax department for every financial year. The company is also required to file its audited financials and Director’s report with the ROC in Form AOC-4 within 30 days of its Annual General Meeting. Whereas, the company has to file its Annual return in form MGT-7 within 60 days of its Annual General Meeting.
- Maintenance of Statutory Registers: A company is required to mandatorily maintain various registers like Minutes of Board Meeting, Minutes of AGM, Minutes of debenture holder meetings, Register of Charges, Register of Share Certificates, Register of Members etc.
- Filing of Director’s Identification Number (DIN) KYC: Every person who has been allotted a DIN is required to file form DIR-3 KYC with the ROC for submitting his/her KYC details for every Financial Year. A failure to file form DIR-3 KYC will result into deactivation of DIN and a penalty of Rs 5,000/- upon late filing.
- Certificate of Commencement of Business: This is a one-time mandatory compliance for all the companies incorporated after November 2018 to file form INC-20A for the Certificate of Commencement of Business within 180 days of incorporation of the company.
EVENT BASED ROC COMPLIANCES
There are various compliance and forms which are required to be filed by a private limited company to inform the ROC regarding the changes made within the Company. Some of the event-based compliances are given below with the relevant form to be filed:
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