Company Compliance in India
Navigating compliance can be a complex and time-consuming challenge for private limited companies in India. Adhering to the extensive requirements of the Companies Act 2013, such as director appointments, shareholder meetings, and other regulatory obligations, is essential but can often feel overwhelming.
At FilingIn, we specialize in simplifying this process for you. Our expert team provides customized solutions, ensuring that your company meets all its compliance requirements seamlessly—from registration to ongoing obligations. With in-depth knowledge of Indian business laws and regulations, we ensure that your business remains fully compliant, no matter the size or stage of your company.
Whether you're a startup or an established business, FilingIn is your trusted partner for all compliance needs.
Compliance for Private Limited Companies:
Compliance refers to adhering to the prescribed rules and regulations. For private limited companies in India, compliance with the Companies Act 2013 is essential. This includes meeting obligations with the Registrar of Companies (RoC), and covering key areas such as:
- Director appointments
- Shareholder meetings
- Maintaining legal and financial records
FilingIn ensures that your company complies with these essential requirements, preventing legal issues and fostering smooth operations.
ROC Compliance for Private Limited Companies:
Compliance with the Registrar of Companies (RoC) is mandatory for all private limited companies in India. It includes:
- Annual Compliance: Regular yearly filings such as submitting annual returns and financial statements.
- Event-Based Compliance: Compliance related to changes in management, share capital, or registered office.
- Other Compliances: Director KYC updates, maintenance of statutory registers, and more.
At FilingIn, we streamline the ROC compliance process, ensuring your company meets every regulatory requirement.
In addition to annual filings, private limited companies are required to comply with various event-based obligations as and when certain events occur. These events necessitate specific filings with the Registrar of Companies (ROC) within a prescribed time frame. Failure to comply may result in penalties or additional fees.
Key Event-Based Compliance Events:
- Change in Authorized or Paid-up Capital: Any alteration in the authorized or paid-up capital of the company requires filing with the ROC.
- Allotment or Transfer of Shares: Issuing new shares or transferring shares requires necessary filings with the ROC.
- Providing Loans: Loans to other companies or directors must be reported and filed accordingly.
- Appointment of Managing or Whole-time Director: Any appointment, along with the compensation details, must be filed with the appropriate authorities.
- Bank Account Updates: Opening, closing, or changes in the signatories of a bank account must be reported.
- Appointment/Change of Statutory Auditors: The appointment or change of statutory auditors must be filed with the ROC.
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Compliance Requirement
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Due Date
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Commencement of Business Certificate (COB)
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Within 180 days of incorporation
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Appointment of Auditor & Filing of E-form ADT-1
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Within 15 days of the Annual General Meeting (AGM)
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Holding Board Meetings
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As per the pre-scheduled board meeting dates
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Conducting the Annual General Meeting (AGM)
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Within 9 months from the end of the financial year
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INC-20A: Declaration for Commencement of Business
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Within 180 days of incorporation
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AOC-4: Filing of Financial Statements
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Within 30 days of the AGM
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MGT-7A: Annual Returns for Small Companies/OPCs
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Within 60 days of the AGM
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DIR-12: Appointment/Resignation of Directors
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Within 30 days of appointment/resignation
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DIR-3 KYC: Director KYC Submission
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By September 30th each year
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MGT-14: Filing of Board Resolutions
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Within 30 days of passing the resolution
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DPT-3: Return of Deposits
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By June 30th each year
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Directors' Report
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At least 21 days before the AGM
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Maintenance of Statutory Registers and Books of Accounts
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Throughout the financial year
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Circulation of Financial Statements and Other Relevant Docs
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At least 21 days before the AGM
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Non-Compliance Penalties:
Failure to comply with the provisions of the Companies Act in India can result in significant penalties for both the company and its defaulting members. These penalties often include fines for the duration of the non-compliance. Furthermore, delays in completing annual filings may attract additional fees.
To avoid financial repercussions and penalties, it is crucial for companies to meet their compliance obligations on time. At FilingIn, we help ensure that your business stays compliant, so you can avoid unnecessary fines and focus on what matters most-growing your company.
Event-Based Compliances for Private Limited Companies:
In addition to annual filings, private limited companies are required to comply with various event-based obligations as and when certain events occur. These events necessitate specific filings with the Registrar of Companies (ROC) within a prescribed time frame. Failure to comply may result in penalties or additional fees.
Key Event-Based Compliance Events:
- Change in Authorized or Paid-up Capital: Any alteration in the authorized or paid-up capital of the company requires filing with the ROC.
- Allotment or Transfer of Shares: Issuing new shares or transferring shares requires necessary filings with the ROC.
- Providing Loans: Loans to other companies or directors must be reported and filed accordingly.
- Appointment of Managing or Whole-time Director: Any appointment, along with the compensation details, must be filed with the appropriate authorities.
- Bank Account Updates: Opening, closing, or changes in the signatories of a bank account must be reported.
- Appointment/Change of Statutory Auditors: The appointment or change of statutory auditors must be filed with the ROC.
Other Non-Registrar Compliance:
Certain regulatory obligations do not involve the ROC directly but are still critical to the lawful operation of your business. These may be governed by different regulatory bodies based on the nature of your business, its size, and the industry. Here’s an overview of non-registrar compliance obligations:
Key Non-Registrar Compliance:
- Payment of Taxes:
- Goods and Services Tax (GST)
- Tax Deducted at Source (TDS)
- Tax Collected at Source (TCS)
- Advance Tax
- Professional Tax (PTax)
- Filing of Periodic Returns:
- Monthly/Quarterly/Annual GST Returns
- Quarterly TDS Returns
- Income Tax Returns
- Tax Audit Report
- Half-yearly ESIC Returns
- Provident Fund (PF) Returns
- Professional Tax (PTax) Returns
- Regulatory Assessment and Reporting:
- Compliance with acts like the Environment Protection Act, Competition Act, and Factory Act.
How FilingIn Simplifies Company Compliance:
At FilingIn, we offer comprehensive support to ensure your company remains compliant, with services such as:
- LEDGERS Compliance Platform: Track deadlines, manage compliance tasks, and generate reports.
- Dedicated Compliance Manager: A single point of contact to assist with ongoing compliance requirements.
- Accounting Services: Maintenance of books and preparation of financial statements.
- Secretarial Services: Assistance with board meetings, AGM preparation, and the drafting of directors’ reports.
- MCA Annual Return Filing: Timely submission of annual returns with the Ministry of Corporate Affairs (MCA).
- Income Tax Filing: Preparation and filing of income tax returns for your company.
Whether you’re a new startup or an established company, FilingIn ensures you stay compliant with ease. Let us handle your compliance tasks, so you can focus on growing your business.
Get started today and experience stress-free compliance management!
Frequently Asked Questions in India
What is company compliance?
Company compliance refers to the adherence to various statutory and regulatory requirements set by government authorities, such as the Registrar of Companies (RoC), tax authorities, and other legal bodies. This includes maintaining records, filing annual returns, conducting meetings, and fulfilling tax obligations.
Why is compliance important for a company?
Compliance is crucial to ensure that your company operates legally and ethically. Failure to comply with legal requirements can result in penalties, fines, and even the risk of your company’s deregistration. It also ensures the company remains trustworthy with investors, partners, and customers.
What are the key compliance requirements for a private limited company in India?
Some of the key compliance requirements for a private limited company in India include:
- Filing annual returns and financial statements with the RoC
- Conducting board meetings and AGMs
- Appointing and maintaining an auditor
- Updating director KYC details
- Filing GST, income tax, and other statutory returns
What happens if a company fails to comply with the statutory requirements?
Non-compliance can lead to various consequences, including:
- Imposition of penalties or fines
- Striking off of the company from the register
- Legal actions against the company and its directors
- Loss of business reputation and trust with stakeholders
How often does a private limited company need to conduct board meetings?
A private limited company is required to conduct at least four board meetings in a financial year, with a maximum gap of 120 days between two consecutive meetings.
What is the deadline for filing annual returns for a private limited company?
The annual return (Form MGT-7) must be filed within 60 days from the date of the Annual General Meeting (AGM). Similarly, the company’s financial statements (Form AOC-4) must be filed within 30 days from the AGM.
What is the process for appointing an auditor for a private limited company?
The first auditor of the company must be appointed within 30 days of incorporation, and the appointment must be ratified at the first Annual General Meeting (AGM). Subsequently, the auditor’s appointment is confirmed using Form ADT-1 within 15 days after the AGM.
Is it mandatory for directors to submit KYC details?
Yes, directors must submit their Director KYC (Know Your Customer) details annually via Form DIR-3 KYC. This submission is due by September 30th each year. Failure to do so may result in a penalty.
What documents are required for annual compliance filings?
To comply with annual filings, the following documents are typically required:
- Financial statements (Balance Sheet, Profit & Loss statement)
- Board resolution
- Details of directors and shareholders
- Auditor’s report
- AGM minutes
Can a company outsource its compliance responsibilities?
Yes, a company can outsource its compliance tasks to a professional service provider, like FilingIn, who can assist with regular filings, maintaining records, conducting board meetings, and ensuring timely compliance with all legal requirements.
