What are the Annual Compliance for private limited company?
A private limited company needs to file financial statements and annual return with MCA every financial year. Income tax return is also required to be filed to complete annual compliance for company.
Annual compliance for private limited company is mandatory. So every Pvt Ltd Company shall do the Annual Compliance – filing requisite forms with ROC – Registrar of Companies and Income Tax returns.
These are to be done even if the company had no business during the year. Annual compliance needs to be done irrespective of business or sales. It needs to be done even with zero turnover.
Procedure For Annual Compliance for Private Limited Company
- Maintain Proper Books of Accounts.
- Prepare and File Balance Sheet.
- Get your accounts Audited by Chartered Accountant.
- File Form ADT-1, AOC-4 and Form MGT-7 with ROC.
- Filing Income Tax Returns with Income Tax Department.
What are the due dates of compliances?
Due date depends on Annual General Meeting (AGM) of the company. Last date for AGM to take place on or before 30th September 2020. Notice for conducting AGM needs to be given 21 days before AGM. For shorter notice, permission of shareholders is to be taken.
For company incorporated between April 2019 and March 2020, last date for AGM to take place is on or before 31st December 2020.
ADT 1 – 15th January 2021
AOC 4 – 30th January 2021
MGT 7 – 01st March 2021
ITR 6 – 30th November 2020
Form 3CA CD – 30th October 2020
List of forms to be filed for Annual Compliance
ADT 1 – Information to the Registrar by Company for appointment of Auditor
AOC 4 – Form for filing financial statement and other documents with the ROC
MGT 7 – Form for filing annual return by a company
MSME – Form for furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprise.
DIR 3 KYC – Application for KYC of Directors
DPT 3 – Return of deposits and loan from directors
Form MBP 1 – Every Director of the Company in First Meeting of the Board of Director in each Financial Year needs to disclose his interest in other entities by filing the form
Form DIR 8 – Every Director of the Company in each Financial Year has to file with the Company disclosure of non-disqualification
ITR 6 – Income tax return for company
Form 3CA-CD – Audit report under Income tax Act
Others – Notice for AGM, Minutes books, Board Resolutions and Statutory registers.
List of Documents required for Annual Compliance of Pvt Ltd
- Incorporation Certificate
- Memorandum of Association
- Articles of Association
- Bank Statements
- Sales bills and Expenses bills
- PAN card of company
- PAN and Address proof for all directors
- Digital Signature
- GST details, if any
Steps to Complete Annual Compliance
Step 1 – Share necessary documents and information as listed above with us.
Step 2 – We will go through the documents, thereafter notify list of query and additional details requirements.
Step 3 – Response to queries needs to be submitted by client.
Step 4 – Draft Financial statement is shared – Balance Sheet and P&L account along with schedules.
Step 5 – Upon approval by client, we proceed to prepare board reports.
Step 6 – After preparation, softcopy is e-mailed for signing Financial Statement and Board reports by atleast two directors.
Step 7 – Thereafter, Forms are prepared to be filed with MCA – Registrar of Companies.
Step 8 – Then, we send draft Income tax computation for your approval.
Step 9 – After approval Income tax return is filed.
Step 10 – All the final documents are shared for your records.
Penalty for not completing Annual Compliance
Late filing or non-filing of Financial Statement or Annual Return before the due date will attract late fees of Rs 100 per day.
For other roc forms late fees upto 12 times of normal fees is to be paid.
Further, the Company cannot be wound-up or closed without filing of the return. Therefore, it is best to file the Annual Return within the due dates.
For late filing of Income tax return Rs 10,000 is to be paid.
· Website address
· Number of board meetings
· Director’s Responsibility statement
· Fraud reporting, if any
· Statement from Independent directors
· Directors’ appointment and remuneration
· Comments on Auditors and CS remarks or qualifications
· Loans, guarantee or Investments
· Related parties transactions
· State of company affairs
· Amount proposing to reserves and dividends
· Material changes and commitments, if any, affecting the financial position of the company
· Conservation of energy, technology absorption, foreign exchange earnings and outgo
· Statement indicating development and implementation of a risk management policy
· Corporate social responsibility initiatives taken during the year