1. Business Commencement Certificate

As a part of the annual compliance for private limited companies, it is mandatory to have a business commencement certificate within 180 days of company incorporation. This applies to companies registered after November 2019 and having a share capital.

Penalty for not following this annual compliance: If you fail to procure the certificate of commencement, the company will be subjected to a penalty of ₹50,000 and the director should pay ₹1,000 for each default day.

2. Appointing an Auditor

Within 30 days of incorporation, an auditor must be appointed as per the ROC compliance. The annual filing of a company should include all of this information.

Penalty for not following this annual compliance: Breaching this private limited company compliance results. Subsequently, the company will not be allowed to conduct business until they appoint an auditor.

3. Filing ITR returns

For private limited companies, this annual compliance is crucial. Every year the income tax returns have to be filed on or before the due date.

4. Submitting MCA Form AOC-4

Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 29 October. Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹100 per day of default.

5. Filing MCA Form MGT-7

Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 29 November.

Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹100 per day of default.

6. Filing for DINeKYC.

As per the ROC compliance, every private limited company should have a director. To perform all the tasks without difficulty, a Director Identification Number (DIN) is required. The director of the company should file DIN eKYC within the speculated period.

Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹5,000 per day of default.

7. Hold Annual General Meetings (AGM)

This is crucial for annual compliance for private limited companies. During the annual filing of companies, all information about the AGM should be provided. It is required to hold an AGM within six months of the end of the fiscal year by ROC compliance.

8. Directors Report

Private company compliance involves providing director reports on time with the ROC and MCA. All the information should be submitted without fail as per Section 134.

Accounting

After each fiscal year, all businesses are required to maintain accounts and prepare financial statements. Our compliance manager will assist your company with account maintenance and will create your company's financial statement at the end of the fiscal year.

Services for Secretaries

Each financial year, businesses must hold a minimum of four board meetings, an annual general meeting, a director's report, and an annual report. You will receive assistance from our compliance manager in creating all secretarial reports and board meeting minutes.

Filing of MCA Annual Return

The annual general meeting of a company shall be held within six months after the end of the fiscal year. An MCA annual return must also be submitted by 30 September at the latest. The MCA annual return for your business will be prepared and filed by our compliance manager.

Filing Income Tax Returns

Regardless of income, profit, or loss, a company must file an income tax return. As a result, even inactive businesses that have no transactions must file an income tax return each year. All the paperwork will be created by our compliance manager, along with the income tax return for your business.

Budgeting

It assists organisations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals.

Evaluating the Business's Performance

Helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on.

Managing Cash Flow

Keeping track of the money that comes into the business on a regular basis helps in projecting patterns, paying employees and suppliers, repaying debts, etc.

Financial Information to Investors and Stakeholders

Investors will gain a better understanding of the business's financial health, including its solvency, creditworthiness, liquidity, stock, and bond issuers.

Mandatory by Law

In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.

Compliance Demands Grow With Your Business

"Complianc" in business refers to meeting legal requirements to protect the health, safety, and welfare of others. Obtaining a business licence and paying taxes are both examples of compliance. Business compliance challenges become more difficult as your company grows. You'll be responsible for more hiring, firing, discrimination, harassment, safety, wages, payroll, and benefits. A government entity may regulate how you create and market your product or service, such as a restaurant following health department requirements.

Reduced Legal Issues

Compliance in a company reduces the danger of fines, penalties, work stoppages, lawsuits, or business shutdown. When you fail to meet company compliance requirements, such as posting a job advertisement in the incorrect location, you may receive a warning and an opportunity to correct the problem. You may face hefty sanctions in other scenarios. Failure to adhere to legal obligations in manufacturing or advertising can help a plaintiff's case. Hire a compliance specialist to assist you in understanding your legal obligations

Improved Operations and Safety

Many business rules are helpful. Discrimination and harassment rules help you establish a better workplace for your employees, which can boost productivity. Following safety guidelines helps to avoid injuries, fires, and building evacuations, all of which reduce profits. Examine the Occupational Safety and Health Administration's and the Equal Employment Opportunity Commission's websites for suggested business practises to strengthen and protect your company's operations.

Better Public Relations

Improve PR business compliance enables you to publicise your legal obligations on your website and in marketing materials. In employment ads, say you're an equal opportunity employer. In your mission statement, state that you do not discriminate on the basis of race, gender, creed, or sexual orientation. When hiring new employees, emphasise your company's commitment to physical and mental health by emphasising policies and benefits such as extended maternity and paternity leave and free gym memberships.

Increased Retention

Employee safety is frequently at the heart of company compliance issues. More employees will stay if they believe they work in a fair, professional, and safe atmosphere. You may lose key employees if you do not take steps to ensure that none of your employees harass or discriminate. The following is a list of the best restaurants in the area. Only strong policies are enforced. Your policy should describe the mechanism for dealing with transgressions, such as reprimand and additional training for a first infraction and suspension or termination for a second. Check in with intermediate managers or supervisors to ensure that complaints are handled properly.

Facilitation of meetings of board of directors:

The first meeting has to be conducted within 30 days of incorporating a business after which four meetings shall be held every quarter in a calendar year. There should not be more than 120 days between two consecutive meetings.

Preparation of the minutes of proceedings of meeting:

Every company needs to file its minutes of the meetings and they shall be preserved permanently to add value in case of any dispute. The meeting minutes are to be maintained at the registered office.

Issuance of share certificates:

The company is required to issue a share certificate to the subscribers of the memorandum within 60 days of incorporation.

Filing of disclosures of directors’ interests and declarations of disqualification:

In the first board meeting, all the directors are required to make disclosures about their interests in other business entities.

Facilitation of annual general meetings:

A company shall conduct at least one AGM each year. The first AGM shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.

Annual compliance returns of the company need to be filed with the RoC within 60 days of the conclusion of the AGM.

Quarterly compliance:

Every company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.

Statutory registrations:

All statutory registrations like GST registration, Provident fund registration, ESI registration, IEC registration, etc. must be completed.