Annual Compliances for pvt ltd company

A Private Limited Company enjoys a separate identity from its 'Directors'. 

So, in order to maintain the active status, as per the MCA, each and every business is needed to file annual compliance for Private Limited Company. In accord with the inception of the Companies Act, the scope of private limited companies has seen loads of changes. 

In an effort to restrict the capabilities of private limited companies, the Ministry of Corporate Affairs and the Registrar of Companies have issued many compliances in accordance with the Companies Act of 2013. 

For someone who is not a professional, this complicated jargon could be a little challenging to understand. In order to handle your annual compliances, it is advised that you consult a CA specialist as soon as your private limited business is registered.

The Private Limited annual Company Compliances 

As per Section 149(1) of the Companies Act, 2013, a smaller number of Directors requires to incorporate a private limited company is 2 & maximum is 15. Here, in addition, it has a threshold limit of 200 members. And all the shareholders of a private limited company have a liability, which is limited to the extent of the capital investment in the firm by them. 

On the other hand, when a public limited company is registered, it needs to have at least three directors. In terms of continuous existence, ease of transferability, and borrowing capacity, a public limited company registration has greater advantages than a private limited company registration. Even in the event of zero yearly revenue, a private company must nevertheless file its annual compliance with the Registrar of Companies.

 

Advantages of Annual Compliances relative with Private Limited Company 

 Greater credibility 

Here, the date of filing the annual compliance for a private limited company is all displayed on the government portal of MCA and is way too visible to everyone. Thus, the regularity in filing the annual compliances increases the business credibility, attracting genuine customers, helping obtain even the government tenders, and attaining the loan approvals. 

 

Annual Compliances for Private Limited Company

Attract the Investors 

The financial records and annual compliances are the key points of focus with regard to the investors. So, before doing the investment do check the regularity of filing the annual returns on the MCA portal. Hence, the regular filing of annual compliances for pvt ltd company is the main thing to obtain the investor's attention. 

 

Maintain the Active Status of your business To avoid fines on accounting services, private limited companies must submit annual compliances. Failure to file could potentially put your company in default and result in severe fines. The firm will also be labelled "in-operational" and deleted from the Registrar of Companies, in addition to everything else. 

Directors of such corporations are forbidden from operating any new firms. From the due date of filing, there will be an extra fee of Rs 100 per day beginning in July 2018.

What are the documents required for Annual Compliances for Private Limited Company?

The documents required for the Annual Compliances for the Private Limited Company are as follows: 

  • PAN card of Directors 
  • Certificate of Incorporation 
  • MOA (Memorandum of Association) and AoA (Articles of Association) of the company 
  • DSC 
  • Audited Financial Statements 
  • Audit Report and Board Report 

First Auditor 

Here, the body of Directors is required to appoint an auditor within the 30 days of incorporation of the limited company. A company that fails to appoint an auditor is very liable to pay a penalty of Rs.300/month. So, in addition, the company will not be allowed to commence the business. As per the rules he/she is required to stay put in the office till the completion of the 1st AGM.  

Note

Remember, Annual Compliance can make or break your business. It helps to maximize the brand loyalty and customer faith in your Private Limited Company. Thus, you should consult with a professional who will not only help you but also keep you in the loop with all the relative developments of Annual Compliances for Private Limited Company.

Alonika is a professional Chartered Firm that offers company registration in India with annual compliance requirements. 

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