Annual Compliance for Private Limited Company: Mandatory ROC Return and ITR filing

If you own a private limited company, you must be familiar with the concept of annual compliance. It’s a mandatory requirement for all private limited companies registered under the Companies Act, 2013. Annual compliance includes various filings and disclosures that a private limited company must make to comply with the regulations set by the Ministry of Corporate Affairs (MCA). Annual compliance is a crucial aspect of running a private limited company. To Know more about annual compliance chat or discuss with our Team

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Company Annual Compliance

Every company registered in India needs to file its annual accounts and annual returns with the Registrar of Companies every year within 30 days and 60 days respectively from the conclusion of the Annual General Meeting. It is crucial for all the companies to file all its ROC Return Filing Forms within the prescribed time limit specified by the MCA (Ministry of Corporate Affairs). If any company fails to comply with the provisions of ROC Annual Compliance, then they may have to bear hefty penalties. Such penalties would be over and above the normal fees charged by the Ministry of Corporate Affairs and there is no way to get away with it.

Director KYC

Directors KYC (DIR-3 KYC) form is a mandatory ROC filing if DIN is allotted on or before 31st March 2022. Non Filing May Attract Penalty of Rs. 5000 per director.  Learn More»

ROC Return Filing

After closing of Financial Year Every Company Need to file ROC Return in form of ADT 1 , AOC 4 and MGT 7, before 30th Sept. Non Filing may impose pealty at Rs 100 Per day.

Statutory Audit & AGM

Statutory Audit is mandatory in case of Private Limited  Companies. After closing of Financial Year, Its responsibility of directors to held AGM and do Audit of financial Statement.

Income Tax Return Filing

Income tax Return apply to All companies  who incorporated on or before 31st March. Non -Filing of Income Tax Return  may impose penalty up to Rs10,000/- 

ROC Return Filing

The ROC is a government authority that oversees the functioning of companies in India. Every company registered in India is required to file annual returns with the ROC. These returns provide information about the company’s financial performance and are essential for compliance purposes.

Filing ROC returns is a legal requirement, and failure to comply can result in penalties, fines, and even legal action. Therefore, it is crucial to file your ROC returns on time to avoid any unwanted consequences.

Here we are going to discuss about forms that every private limited companies need to file during Annual ROC Return – 

E-form DIR – 3 KYC Filing

Director’s KYC Filing is an annual activity and applies to every person who was allotted a DIN (Director Identification Number) on or before 31st March. The purpose of filing the DIR-3 KYC form to the ROC is to keep the records of the ROC updated with the correct address, mobile and email address of the directors/designated partners. It is a mandatory filing and Non Filing will result in to deactivation of DIN. 

Applicability

Directors KYC (DIR-3 KYC) form is a mandatory ROC filing if DIN is allotted on or before 31st March 2023. Learn More »

Due Date for Filing

It required to filled on or before 30th July of immediate next financial year.

Penalty For Non-Compliance

The DIN shall be inactive and the DIN holder will not eligible to appoint or resign in/from any company.
Penalty for Non filing DIR-3 KYC will be flat INR Five thousand 5000.

E-form ADT-1 Filing

Form ADT-1 is to be filed for the appointment of the auditor, duly approved by the shareholders in the first AGM. It needs to be filed within 15 days of the AGM.

Applicability

Applicable to all Companies who are incorporated on or before 31st Dec 2022.

Due Date for Filing

It required to filled within Fifteen (15) days from the Date of Annual General Meeting (AGM), of every year, file with the Registrar.

Penalty For Non-Compliance

The company and every officer of the company who is in default shall be liable to a penalty that depend on capital amount of company.

E-form: AOC-4 Filing

Financial statements, i.e. Balance Sheet along with Statement of Profit and Loss Account and Directors’ Report must be filed within 30 days of holding AGM. Non Filing May Impose penalty at Rs100 Per day.

Applicability

Applicable to all Companies who are incorporated on or before 31st Dec 2022.

Due Date for Filing

It required to filled within thirty (30) days from the Date of Annual General Meeting (AGM), of every year, file with the Registrar.

Penalty For Non-Compliance

The Company is required to Pay additional duty of INR Hundred (100/-) per days after the expiry of Thirty (30) days from the Date of Annual General Meeting (AGM)

E-form: MGT-7A Filing

Annual Returns for Small Company/OPC) Need to file in E-formMGT-7A. Non Filing will impose penalty at Rs. 100 per day.

Applicability

Applicable to all Companies who are incorporated on or before 31st Dec 2022.

Due Date for Filing

It required to filled within 60 days from the Date of Annual General Meeting (AGM), of every year, file with the Registrar.

Penalty For Non-Compliance

The Company is required to Pay additional duty of INR Hundred (100/-) per days after the expiry of 60 days from the Date of Annual General Meeting (AGM).

Company Income Tax Return Filing

The company is a distinct legal person and is an assessee under the Income Tax Act, 1962. Irrespective of its transactions or profitability, every company has to file its Income Tax Return in the prescribed form ITR-6 for the previous year. For example, every company incorporated on or before 31st March 2023 shall be filing its ITR during the FY 2022-23. For filing the company’s income tax return, the financial statement and its audit should be completed.

Applicability

Apply to All company who incorporated on or before 31st March 2023.

Due Date for Filing

Between 1st April 2023 – 30th Sept 2023

Penalty For Non-Compliance

Non filing of ITR may impose penalty up to Rs10000.

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Financial Statement of Company

The books of account form the basis for preparing the Financial Statements at the end of the financial year for filing the ROC Return and the Income Tax Return. The company’s financial statement is drawn in compliance with the accounting standards and in the prescribed format of Schedule III of the Companies Act, 2013, containing all necessary disclosures as is required under the law. We advise our customers to maintain their books of account using good accounting software and recent changes introduced by MCA.

  • Balance Sheet
  • Profit & Loss Account
  • Cash Flow Statement
  • Notes to Account
  • Statement of Changes in Equity
Annual Compliance for Private Limited Company

Statutory Audit of Company

The responsibility of preparing the company’s financial statement is on the Board of Directors of the company. Before the AGM, a company’s financial statements are required to be audited by the statutory auditor in the whole time practice and appointed as the company’s auditors. Section 139 of the Companies Act, 2013 clearly provides that the statutory auditor must be an independent person and is not someone who is also providing consultancy or accounting services to the company. We have an independent panel of qualified and experienced chartered accountants available to be appointed as your company’s statutory auditor. The auditor has to express an opinion on the financial statement, whether it reflects the true and fair view of the business or not.

Annual General Meeting (AGM)

An Annual General Meeting (AGM) is a mandatory yearly meeting held by the private limited company’s shareholders, directors, and auditors to discuss the company’s financial statements, governance, and future plans. The Companies Act, 2013, mandates every private limited company to hold an AGM within six months from the end of the financial year. For example, if the financial year ends on 31st March, the AGM should be held by 30th September of the same year.

Why is an AGM important?

The Annual General Meeting is essential for several reasons, including:

  1. Financial accountability: The AGM provides an opportunity to review the company’s financial performance and hold the directors accountable for their actions.
  2. Shareholder engagement: The AGM allows the shareholders to ask questions, raise concerns, and participate in decision-making.
  3. Compliance: The Companies Act mandates every private limited company to hold an AGM, failing which may lead to penalties or legal consequences.

What are the consequences of not holding an AGM?

Failing to hold an AGM can have severe consequences for the company and its directors. If a company fails to hold an AGM, it can be considered a violation of the Companies Act, 2013, and the company and its directors can face penalties, fines, or legal action. Additionally, the Registrar of Companies (ROC) can take action against the company, such as striking it off the register or even winding it up.

Cost of filing Company Annual Return

The overall cost of filing a roc return and the ITR depends on several factors such as the number of transactions, GST Return reconciliation, and the client’s particular situation. For ease of understanding, the cost of filing annual compliance for the company may be divided into Consultant Fee, ROC Fee and late fee, if any. On the first hand, the consultant fee is a very relative factor and depends on each case and the consultant CA, CS, CMA or the Corporate and Tax Lawyer.

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Discuss with our Compliance Manager's

Don't hesitate! We help companies in their accounting, audit, ITR and ROC Filing @ reasonable fee. Give a call or chat with us. We are available 24*7 Hours

+919818209246

FAQ's On Annual Compliance

Annual compliances for a Private Limited Company are mandatory and need to be filed every year. The compliances are as follows:

  1. Annual General Meeting (AGM)
  2. Director’s Report
  3. Financial Statements
  4. Income Tax Returns
  5. Annual Return

Balance sheet and Annual Returns have to be filed once a year. In addition, companies have to file Form 3 if there is Return of Allotment, Form No INC-22. If there is a change in the Registered Office; Form No DIR-12 for Change of Directors; etc.

An Annual General Meeting (AGM) is a meeting of the shareholders of a company held every year. The AGM is held to discuss the financial performance of the company and to elect the Board of Directors.

All the shareholders of the company are required to attend the AGM. The Board of Directors and auditors of the company are also required to attend the meeting.

The AGM has to be conducted at the registered office of the company or at any other place within the city, town or village wherever the registered office is situated. The Meeting should happen during the business hours (9 am-6 pm) on any day that is not a national holiday declared by the Central Government.

Annual General Meeting must be conducted within the stipulated timelines. However, if it is not conducted within the stipulated time frame, for the special reason, Registrar of companies may provide an extension for a period not exceeding three months, which can be applied before the last date for holding the AGM. According to section 97 of Companies Act, 2013, if any default is made in holding the AGM of a company U/S 96, the Tribunal may, notwithstanding anything contained in this Act or Articles of Association of company, on the application of any member of company may call or direct the company to call Annual General Meeting of the company. With the help of Section 97, if any company fails to call AGM and didn’t apply for an extension it can call AGM with the help of any member who can file the application to NCLT with Form NCLT-1. In case of any default in complying with provisions of Sections 96 & 97 or failed in complying with any directions of Tribunal, the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs. 1,00,000/- and in case of continuing default, with a further fine which may extend to Rs. 5,000 for every day during which such default continues.

A Director has to be physically present to attend at least one Board meeting of the company. In absence of the original director, an alternate director may be appointed to attend the meeting. If a director absents himself from all the Board Meetings of the Company, he has to be vacated from the Office of Directorship of the company.

Yes, the Board of Directors can appoint a person for alternate directors. But he/she must not have been holding a similar post in any other company.

A Director’s Report is a report prepared by the Directors of the company that gives a summary of the company’s financial performance, its future plans and its achievements during the year.

Pursuant to Section 134 of the Companies Act 2013 and Rules made thereunder, the company shall be punishable with a fine between Rs. 50,000 and Rs. 25,00,000/- and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to 3 years or with fine of mimimum Rs. 50,000 and maximum Rs. 5,00,000/- or with both.

The Income Tax Returns for a Private Limited Company needs to be filed every year by the 30th of September.

An Annual Return is a document that needs to be filed by a Private Limited Company every year. This document provides the details of the company’s shareholders, directors and the share capital of the company.