Let us handle your annual compliance stress!
Advisource can help you easily complete your annual compliance requirements in just a few clicks at an affordable cost. Our process is easy and fast, and our experts are available 24×7 to assist you.
Consult an Expert Now!
Annual Compliance for Private Limited Company/ One Person Company (OPC)
Annual Compliance of Private Limited Company/OPC
Annual compliance refers to the various regulatory requirements that a business must fulfill on an annual basis in order to operate legally in India. These requirements vary depending on the type of business, but may include filing annual financial statements, holding annual general meetings, appointing and reappointing directors, filing forms for changes in directors or company secretary, and filing forms for changes in the registered office or name of the business.
It is important for businesses to stay up to date with their annual compliance requirements in order to avoid penalties and maintain a good reputation. Non-compliance with these requirements can result in fines, legal action, and damage to the business’s reputation.
In addition to the annual compliance requirements specific to their business type, all businesses in India are also required to comply with various laws and regulations related to areas such as tax, labor, and environment. Failure to comply with these laws and regulations can also result in penalties and legal action.
Consult an Expert
Different Annual Compliance Requirements for Private Limited Companies
Private limited companies in India are required to comply with several regulations set forth by the Ministry of Corporate Affairs (MCA). Some of the annual compliance requirements for private limited companies in India include:
- Filing of annual financial statements and annual returns: Private limited companies are required to file their financial statements (balance sheet, profit and loss statement, and notes to the accounts) and annual returns (Form MGT-7) with the MCA within 30 days of the annual general meeting.
- Holding annual general meetings (AGMs): Private limited companies must hold an AGM each year, at which the directors must present the annual financial statements and report on the company’s performance.
- Appointing and re-appointing directors: Private limited companies must appoint at least two directors, and a maximum of 15. Directors must be reappointed every 5 years.
- Filing of forms for changes in directors or company secretary: If there are any changes in the directors or company secretary of a private limited company, the company must file the necessary forms with the MCA within 30 days of the change.
- Filing of forms for change of registered office: If a private limited company changes its registered office, it must file the necessary forms with the MCA within 30 days of the change.
- Filing of forms for change of name: If a private limited company wishes to change its name, it must file the necessary forms with the MCA and obtain approval before the change can be made.
- Filing of forms for alteration of memorandum of association: If a private limited company wishes to make any alterations to its memorandum of association, it must file the necessary forms with the MCA and obtain approval before the changes can be made.
- Filing of forms for alteration of articles of association: If a private limited company wishes to make any alterations to its articles of association, it must file the necessary forms with the MCA and obtain approval before the changes can be made.
Mandatory Annual Compliances
First Board Meeting
The first meeting of the board of directors of a private limited company in India must be held within 30 days of the company’s incorporation. Notice of the meeting must be sent to each director at least seven days beforehand.
Subsequent Board Meetings
Minimum of 4 Board Meetings to be checked every year with a gap of not more than 120 days between two meetings.
Filing of Acknowledgement of Interest by Directors
At the first meeting that a director attends as a director, or at the first meeting of the Board each financial year, or whenever there is a change in disclosures, the director must disclose any interests or involvement they have in any companies, corporations, firms, or other organizations (including shareholding interests) using Form MBP 1. This form must also include a list of the director’s relatives and their involvement in the company as defined by the RPT. This form must be kept on file by the company.
First Auditor
The Board of Directors must appoint the company’s first auditor within 30 days of incorporation. This auditor will hold their position until the first annual general meeting. It is not necessary to file ADT-1 for the appointment of the first auditor.
Subsequent Auditor
At the first annual general meeting, the Board of Directors will appoint an auditor who will hold the position until the sixth annual general meeting. The company, not the auditor, must notify the ROC of this appointment by filing ADT-1 within 15 days of the appointment.
Annual General Meeting (AGM)
Every company is required to hold an annual general meeting (AGM) by September 30th of each year, during regular business hours (9 am to 6 pm). The AGM must be held at the company’s registered office, located within the city/town/village where the registered office is located, on a day that is not a public holiday. A notice of 21 days must be given for the AGM.
Filing Of Annual Returns (Form MGT-7)
Private limited companies are required to file their annual return within 60 days of holding the annual general meeting. The annual return covers the period from April 1st to March 31st.
The filing of financial statements in Form AOC-4
Private limited companies are required to file their balance sheet, profit and loss statement, and director’s report in Form AOC-4 within 30 days of the annual general meeting.
Statutory Audit of Accounts
All companies must have their accounts audited by a chartered accountant or other qualified individual at the end of the financial year. The auditor must provide an audit report and the audited financial statements to be filed with the registrar.
Documents Required for Annual Filing of Company
1. PAN Card
2. Certificate of Incorporation
3. MOA – AOA of Private Limited Company
4. Audited Financial Statements (An independent auditor must audit financial Statements)
5. Audit Report & Board Report (Independent Auditor’s report and Board report must be concerned)
6. DSC of Director (An accurate and active DSC of one of the directors must be provided and presented)
How Advisource Can Help in Annual Business Compliance?
At the end of each fiscal year, businesses are required to maintain accounts and prepare financial statements. Our compliance expert will help your company with account maintenance and will create your company’s financial statement. Businesses must hold a minimum of four board meetings each fiscal year, as well as an annual general meeting, and prepare a director’s report and annual report. Our compliance expert will assist you in creating all required secretarial reports and board meeting minutes. The annual general meeting must be held within six months after the end of the fiscal year, and the MCA annual return must be submitted by September 30th at the latest. Our compliance expert will prepare and file the MCA annual return for your business. All businesses, including inactive ones with no transactions, must file an income tax return each year. Our compliance expert will handle all necessary paperwork and prepare the income tax return for your business.