Annual compliance to be done by private limited company

Private Limited Company

The word "Private Company" defined under Section 2(68) of the Companies Act 2013. It is now optional to keep any minimal capital. However, articles shall provide for

• The private limited Company is restricted to transfer its shares;
• The maximum number of its members is restricted to two hundred;
• Prohibited to invite public to subscribe to its shares.

Let us understand the compliances dono by Private Limited Company.

Is is quite easy to start a business by forming private limited company.

Here is the list of compliances to be done by Private Limited Company. The same is to be done in order to avoid late fees and penalty:

Holding Board Meeting

This is the main consistence that should be done subsequent to registering of the private limited Company. Meeting among the board individuals, the primary gathering of the Board will be conducted within 30 days of registering of the Private Limited Company. From that point, at any rate 4 Board meetings to be led each year with a hole of 120 days between each meeting of the Board. This implies each Private Limited Company will have at least 4 business meetings every year and gap must not be over 120 days between ensuing Board meetings or each quarter one meeting. Records of these Board meetings will likewise be made which is known as the minute of the meeting. For this, registers are to be kept up by the Company. It can likewise be prepared digitally. Here the plan of the gathering, attendance of members, and the participation are recorded.

Disclosure of interest by directors

It is to be noticed that each director will in its first board meeting unveils about the enthusiasm for any organization, firm or other AOI (including any shareholding interest). The disclosure of interest shall be filed each year, if there is any change in the interest, it is to be filed alongside the list of relatives too. This disclosure of interest will be recorded in MBP 1 form shall be submitted with the Company.

Appointment of the Auditor

The auditor for the Company will be appointed by the Board of Directors within a time of 30 (Thirty) days from the Date of incorporation of the Company. The appointment will be filed in ADT-1. If there should arise an occurrence of failure of the Board to choose the first audior within the said time of 30 days, the Board will intimate the members of the Company who will select an auditor within a time of 90 days. The appointment must be done in an extraordinary general meeting.

Declaration of Commencement of Business

Announcement of Commencement of Business will be filed in Form 20A. It is a compulsory compliance and should be recorded with due courses of events as described below. The Form 20A shal be affirm by the professional like CA CS or CMA.

Due date for the first time filing of Form 20A

Note: Failure to comply with annual compliance may lead to the removal of the company’s name from the Register of Companies.

Holding Annual General Meeting

The Private Limited Company shall hold a general meeting every year. It is mandatory to conduct it on or before 30th September every year. In case of first AGM shall be held within 9 months of closing of Financial Year. It is to be noted that the AGM shall be conducted within office hour ie., 9 AM to 6PM. The day must not be a public holiday and a clear notice of 21 days shall be given to the members. The Approval of accounts, appointment/re-appointment of auditors, Remuneration of directors are some of the agendas of AGM.

Annual ROC Filing

RoC Filing is nothing but submission of annual accounts and financials prepared by the Company. Here, list of shareholders, directors, interest, details of other things, board reports and other stuff required to be furnished by the Company with RoC.

Following are the forms which required to be submitted.

KYC of Directors of the Company

All directors are required to file a form to do the KYC with the RoC, if you have already submitted the form then one needs to verify the OTP over email and mobile no. otherwise all new director needs to submit this form.

Due Date for filing DIR-3 KYC: On or before 30th April of immediate next Financial Year