Annual Compliance for Private Limited Company
Annual compliance for a private limited company includes all the requirements undertaken by the private limited company to comply as per the rules and regulations. Annual compliance is required for all forms of entities. However every entity has to carry out the requirements related to compliance.
A private limited company has lot of advantages such as limited liability protection, easy to raise funds from venture capitalist and continuous existence while the confidence of the community come at the cost of increased annual compliance.
It is mandatory for business owners to comply with Companies act, Income tax, GST & State Laws. In addition to the ROC compliances, Companies have to submit income tax returns every year by 30th September. From the year 2018, the compliance requirement has been increased now for private limited companies.
We ensure to meet the corporate compliances on time as and when they are due. At Enterslice, we provide end to end advisory services to clients so that they can focus on business and our dedicated team of consisting team of 300+ CA, CS & Lawyers will take care of business compliance.
Annual Compliance Package
After order confirmation, a dedicated in-house CA/CS will be assigned on your order that will be the single point of contact to manage your business compliance. You may ask any questions about the company’s Compliance, Taxation and Regulatory issues.
Our Team will review the accounts of the company at the end of the financial year on the basis of which they will finalise Balance sheet & profit & loss accounts of your company.
Annual Audit Support Services
In-house Dedicated Professional will provide necessary support for the statutory audit of the company.
Income tax return Filing
Our Tax Advisory will submit income tax returns and will guide you from time to time about the tax planning, Advance tax payments etc.
Company Secretary Services
Our In-house CS will prepare/review minutes of the meeting of your company as per Companies act 2013. Minimum 4 board meetings are required to held in one financial year in case of other than small company while in case of small companies only 2 board meetings are required to be held.
Financial Statements & Annual Return Filing
Once shareholders approve your financial accounts in the AGM (Annual General Meeting), our team of professionals shall file your financial statements & annual return with MCA in Form AOC-4 & MGT-7 respectively.
Benefits of PRIVATE LIMITED COMPANY Annual Compliance
The following benefits can be achieved by complying with the relevant regulatory requirements of the business:
By complying with the requirements of the Registrar of Companies and the Ministry of Corporate Affairs, the Private Limited Company and partners will increase their reputation in the eyes of the public. Through this process a Private Limited Company can increase its compliance requirements. More investors would be willing to invest in an Private Limited Company that complies with the requirements of the law.
By filing all compliances within a particular period of time, the Private Limited Company would be free from any form of compliance requirements. By considering this, an Private Limited Company can fulfil its objectives.
By complying with the requirements of the authorities, the PRIVATE LIMITED Companys would face lesser burden when it comes to compliance requirements. If compliances are not followed up or filed by the Private Limited Company, it can be detrimental to the development of the Private Limited Company. Hence it is crucial that all the requirements related to compliance are followed by the partners of the Private Limited Company.
Compliance calendar for Private Limited Company for Financial Year 2019-20
In 2019, many new compliance requirements have been introduced by the Ministry of Corporate Affairs.
Summary of compliance applicable for FY 2019-20:
The company is required to maintain its accounts and finalise its financial statements (Balance Sheet & P/L Account) on the basis of its accounts for the previous year.
Audit of Accounts
Audit is an independent examination of books of accounts, statutory records, and vouchers in order to ascertain whether the financials represent true & fair value. For the audit of books of accounts, an auditor has to be appointed by the company within 30 days from the date of incorporation
Income Tax Compliances
Every company is required to file Annual income tax returns by 30th September of the following financial year. Also, companies are required to adhere to withholding tax compliance. While making specific payments, a Company has to deduct tax at source (TDS) which is applicable on payments such as Salary, Interest, Dividend, Rent, Fee for professional and technical services, Commission and brokerage etc.
It is mandatory for the payer to deduct a specific percentage from the payment and pay the balance to the recipient. A quarterly return has to be filed by the payer to the Income tax department containing details of payee, date of deduction and date of remittance to department etc.
The due dates for filing TDS returns are as follows:
Filing Due Date
After Obtaining Online GST Registration as Normal Taxpayer, the entity will be required to file the GST returns (In Total 37) on time. The requirement of GST Returns is based on the annual turnover of a taxable person. If annual turnover is less than Rs 1.5 Cr then only you need to submit quarterly returns. On the respective Due dates of GST returns, you need to submit details of purchase and sale. Failure to file GST Returns will attract penalty.
- Auditor Appointment within 30 days from the date of incorporation
- Balance Sheet Finalization
- Statement of Profit & Loss Account (Including Consolidated Financial Statement)
- Cash Flow Statement
- Directors’ Report
- MGT-9 (Extracts of Annual Return)
- Auditors’ Report
- Notice of AGM
- Maintain Statutory Registers
- Professional tax Registration and Filing
- Filing of Financial Statements in Form AOC-4
- DPT -3 Filing
- MSME 1 & 2 Filing
Annual Compliance for Private Limited Companies 2020-21
- AGM- Every private limited company is require to carry out an Annual General Meeting. This is also known as the shareholders meeting or the general meeting. Such compliance is required to be carried out yearly. Such meeting must be carried out within 15 months of the last Annual General Meeting or 6 months from the closure of the financial year. First AGM would be held 9 months before closure of Financial year. This would mean the meeting is supposed to be held on 31 Dec 2020.
- Board Meetings- Meeting of the Board is known as Board Meetings. Such meetings have to be held after 3 months. Hence a total of four meetings have to be held in a year. Maximum gap for a board meeting is 120 days.
- Financial Statements- Have to be filed with the ROC, within 30 days of the Annual General Meeting.
- Annual Return of the Company- Has to be filed with the ROC within 60 days of the Annual General Meeting.
- Return on Foreign Assets and Liabilities- This compliance has to be met yearly by 15 July.
- CSR Declaration/ CSR Meetings- Carried out yearly.
- Annual Declaration- This must be carried out as per the requirements of the board meetings. This must be carried out in Form DIR-8 and Form MBP-1. This compliance must be carried out by the company in the first board meeting of every financial year.
- MSME Returns- Must be carried out half-yearly.
- KYC Requirement of Directors- DIR-3 KYC.
Tax Compliances for FY 2020-21
- Corporate Taxes- Advance Tax Payments have to be carried out quarterly and the respective returns on income should be filed yearly.
- Withholding Tax- Withholding tax must be paid as per the requirements of the time limit for payment of the respective taxes.
- Audit Tax- This form of audit must be filed yearly through Form 3CB and Form No 3CD.
- Transfer Pricing Tax- Form No 3CEB must be filed and carried out yearly.
- Outward Supply of Goods and Services- This tax compliance must be carried out monthly and quarterly as per the requirements of the respective laws.
- Monthly Return- Form GSTR-3B must be carried out monthly.