A Private Limited Company must adhere to specific restrictions in India. Although founding a Private Limited Company is the most frequent option to start a business, there are a few rules to follow once you’ve done so.ROC Compliance of Private Limited is mandatory, Sanket Agarwal (Founder and CEO) is a renowned CA who can help in Annual ROC Compliance. He has helped over 10k+ in India, Dubai, and Hong Kong with various consultations for annual return filing.
ROC Compliance of Private Limited in India: An Overview
A private company is a legal entity with its own personality that must maintain its active status by filing documents with the MCA on a regular basis. Every fiscal year, every business is required to file an annual return and audited financial records with the MCA. Regardless of the turnover, whether it is zero or in crores, the RoC must be filed. Annual compliance for Pvt ltd company is required for all certified companies, whether they conduct a single business or none at all.
The time of the Annual General Meeting determines the due date for a company’s annual filing. The incompetence of directors could lead to the company’s name being removed from RoC’s registration if it continues to fail. It has also been noted that MCA has made proactive measures to address any such failures. For ROC Compliance of Private Limited, you can connect with Caonweb.
The Role of Roc in annual compliance for Pvt ltd company: Annual return filing
In India, there are 22 business registrars. The Registrar of Companies, also known as the RoC, is an MCA agency in charge of enforcing the Companies Act of 2013. The RoC was also appointed in accordance with Section 609 of the Companies Act. The RoC is in charge of ensuring that private limited firms and limited liability partnerships comply with the Act’s legislative requirements. In addition, the RoC maintains a list of all companies that have registered with them.
Annual compliance for Pvt ltd company in Details: Learn about company annual filing
- Account Reconciliation
The company account book includes vouchers, minutes, deeds, documents, documents, and registers relating to the company’s transactions. It’s firstly important for the annual filing of company.
- Preparation of Financial Statements
Preparing financial statements for general purpose; including balance sheet, income statement, profit, and loss statement, and cash flow statement.
- Statutory Audit by Independent Auditor
A formal audit of qualified auditors was conducted to report the company’s financial status and accounts to the Indian government.
- Filing of Annual ROC Returns
Consolidated companies are required to submit E-File audited financial statements and account books with the Registrar of Companies (ROC).
- Submission of Income Tax Returns
All companies registered under the Companies Act in India are required to complete income tax returns each year on or before 30 days.
- Maintenance of Statutory Registers
Every company incorporated under the Companies Act, 2013 is required to keep certain records of the company in the form of official registers.
Benefits of doing company roc filing for private companies and many others
- Developing a Business’s Credibility
The date of the firm’s annual return filing is completed on the Master Data on the MCA portal—compliance with the law is a vital obligation for each company. Consistency in compliance is a crucial factor to gauge an organization’s reliability whether it comes to ministry bids, loan support, or other comparable goals.
- Investors are welcome
When a company seeks funding from investors, the investors want all economic records and dates before approving the plan. Investors can either contact the company directly or consult the MCA portal for economic reports. Investors also prefer companies that provide regular compliance reports.
- Maintain An Active State To Avoid Penalties
Failure to file the return on a regular basis results in the company’s failure and the imposition of severe penalties. It’s also attainable that the business will be stated vanished or removed from the RoC all compliances activities. The directors in question are also prevented from being appointed in the future. Since July 2018, an extra cost of $100 has been charged for each day of late submission till the due date.
Required and Compulsory Annual ROC Compliance for Private Limited Company
Here are some of the binding agreements that a private company Limited must guarantee and company annual return :
- First Board Meeting
Along with all company directors, the First Board Meeting is required to be held within 1 month or 30 days of Consolidation. The notice of the Board meeting must be formally notified or sent to each company director at least seven days prior to the meeting.
- Subsequent Board Meetings
Minimum of the next 4 Board Meetings to be held annually within 120 days of the gap between the two meetings. Applying for approval of directors of a company, Every director in:
- At the first board meeting he was hired as a director; or
- The first meeting of company Board members in each FY; or
- Whenever there is a need for disclosure it will be disclosed on Form MBP 1 with a full list of relatives and relative visits to the Company under the definition of RPT), his or her interest in the board, any company, organizers, or firms, or other organization. for individuals including interest in stocks. The MBP-1 form must be kept in the Company’s records or documents.
- First auditor
The board of directors will send the first Auditor of the Company within a period of 30 days of Cooperation who will hold office until the completion of the 1st AGM. In the case of the First Auditor, the installation of ADT-1 is not mandatory.
- Subsequent Auditor
The BOD will provide the Auditor-General at the first AGM of a limited company who will hold office until the decision of AGM 6 and will notify the same to the ROC by completing ADT-1. Content to be submitted Form ADT 1 is for the Private Limited Company and not the Auditor within 15 days from the date of appointment.
- Annual General Meeting
Every Private Limited Company is required to arrange an Annual General Meeting on or before 30 September of each financial year during office hours. On the day if it is not a public holiday and can be in a registered private office limited within the village/town/city where the registered office is located. A clear 21-day notice is needed to provide for the same.
- Filling/ Submission of Annual Return (Form MGT-7)
All Limited Limited Companies are expected to submit their Annual Return Form within 60 days of the Annual General Meeting. The company’s Annual Return will be completed between ‘April 1 and 31 March annually.
- Submission/ Filling of Financial Statements by (Form AOC-4)
Every Limited Limited Company is required to complete its ‘Balance Sheet’ with the statement or report of the ‘Executive Report’ and ‘Profit and Loss Account’ on this form within 30 days of setting up the ‘Annual General Meeting’.
- Statutory Audit Of Accounts
Every Private Limited Company must prepare its account reports and obtain the appropriate audit by the Professional / Chartered Accountant at the end of each financial year. The Auditor-General must provide the Audit Report and the Audited Financial Statements of the company for submission to the Registrar.
Documents Needed for Annual Filing of Company & company annual return
- PAN Card of directors and company, Certificate of Incorporation, MOA & AOA of Private Company
- Audited Financial Statements
- Financial Statements must be audited by an impartial auditor.
- The audit committee reports are needed along with & the Board of Directors reports.
- The report of the independent auditor and the report of the Board of Directors must be taken seriously.
- Director’s DSC is important for the annual filing of company.
- One of the directors’ accurate and active DSC must be produced and presented.
Checklist for ROC companies of Private company annual filing
A startup operating as a private limited company must adhere to the rules of annual filing of company compliances established by several statutes and administrative organizations. These include, but are not limited to, filing tax and other returns on a regular basis, hosting board and other meetings, keeping approved books and accounts, and so on.
- GST liability, TDS, and TCS all need to be paid on a regular basis.
- Noncompliance with periodic returns by the Registrar – (Monthly, quarterly, annual returns- GST, TDS, etc).
- GST Returns (Monthly/Quarterly)
- TDS Returns on a quarterly basis.
- Periodic assessment of advance tax liability and payment of advance tax.
- Filing of Income Tax Returns (Tax will be levied at a flat rate of 30% + an education levy)
- The submission of a tax audit report.
- Under several acts of law, trade is assessed administratively (Example: Money Laundering Act, Factory Act, Competition Act
From Caonweb (CA Near Me service provider )you can take assistance for company annual return or company roc filing.
Q- Is it true that private companies must file audited financial statements every year?
In the annual filing of the company, every company has required audited financial statements. Just only the audited financial accounts must be filed and submitted. In addition, the absence of an audit of financial statements is not a basis to postpone the annual filing.
Q- What is the name of the form used to appoint a Statutory Auditor?
For the appointment or replacement of the Statutory Auditor, Form ADT-1 must be filed. For company annual filing Caonweb can help better.
Q- What are the penalties for failing to comply with statutory obligations as a business director?
If a director fails to comply with the statutory obligations for three years in a row, he or she will be disqualified from serving as a director in any other firm.
Q- Is it essential for me to be physically present during the process of the company annual return?
No, you do not need to be physically present during the process; CAONWEB is an online catering platform, so all you need is an internet connection on your phone/computer and the appropriate documentation, and we can get the job done however where you are in India.
Q- When does the Company Secretary have to sign the company annual return to a Private Limited Company?
Every private company with a paid-up capital of fewer than 5 crores must have an annual return signed by the Company Secretary in Practice.
Related Blog: ROC FILING FOR INCORPORATED COMPANIES
Related Blog: ANNUAL FILING COMPLIANCE FOR STARTUPS
Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.