{"id":7727,"date":"2022-03-21T05:46:49","date_gmt":"2022-03-21T05:46:49","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=7727"},"modified":"2025-06-16T15:16:51","modified_gmt":"2025-06-16T09:46:51","slug":"annual-compliance-for-private-limited-company-in-india","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/annual-compliance-for-private-limited-company-in-india\/","title":{"rendered":"Annual Compliance for Private Limited Company in India"},"content":{"rendered":"

Annual Compliance for Private Limited Company<\/h2>\n

In India, a type of business entity founded on a substantial basis is known as a private limited company, making the registration of a private limited company<\/strong><\/a> in our Country an essential element.\u00a0It is simple to operate and raise funds, along with providing minimal responsibility to its members, flexibility, and quick access to bank loans or other credit-related funds.
\nA private company is a legal entity with its personality that must maintain its active status by filing documents with the Ministry of Corporate Affairs (MCA on a regular basis. Every fiscal year, every firm is required to file an annual return and audited financial records with the MCA. Regardless of the turnover, whether it is zero or in crores or significantly more, the Registrar of Companies (ROC) must be filed with the annual compliance. Annual compliances\u00a0<\/a><\/strong>are required for all private limited companies, whether they conduct a single business or none at all, regardless of whether they are certified or registered<\/span>.
\nBoth forms are used to report the activities as well as the financial data for the respective Financial Year. The timing of the Annual General Meeting, or the AGM, determines the due date for a company\u2019s annual filing. Incompetence of directors might lead to the company\u2019s name bein<\/span>g removed from the ROC\u2019s registration if it continues to fail. It has also been noted that MCA has made proactive steps to address any such shortcomings. The company\u2019s compliance requirements can be divided into two categories:\u00a0mandatory compliance<\/a> and event-based compliance<\/span>.
\nBut it shall be noted that the event-based compliances are those that are triggered when particular events occur, such as a change in directors, a change in registered office, or a change in permitted share capital, for example. As a result, it\u2019s critical that such incidents are documented and compliance is satisfied on time to prevent fines or additional expenses. Due to this, we cannot say that these are Annual Compliances in particular.<\/p>\n

What are the Mandatory ROC Compliances for a Private Limited Company?<\/h2>\n

Certain mandatory annual compliances which should be complied with by the Private Limited Company are enlisted below:<\/p>\n

\"Mandatory<\/p>\n

\u00a0<\/p>\n

1) First Board Meeting<\/strong><\/h4>\n

Within 30 days of the company\u2019s registration or incorporation, the first meeting of the board of directors is expected to take place. At least seven days before the meeting, each director must receive a declaration of the Board Meeting to be held.<\/p>\n

2) Subsequent Board Meetings<\/strong><\/h4>\n

Every year, at least four board meetings must be held, with no more than a 120-day gap between meetings.<\/p>\n

3) Acknowledgement of Interest Filing by Directors<\/strong><\/h4>\n

Every director of the company shall at:<\/p>\n

    \n
  1. The first meeting where he takes on the role of director, or<\/li>\n
  2. The first Board meeting of each fiscal year; or<\/li>\n
  3. Whenever there is a discrepancy in disclosures identified by him, he shall disclose his interest or interest in any company, body corporate, organizers\/firms, or other organization of individuals in Form namely, MBP 1, along with a list of relatives and attention of relatives in the Company as per the definition provided by the RPT, including shareholding interest. Form MBP1 is to be preserved in the Company\u2019s records.<\/li>\n<\/ol>\n

    4) First Auditor<\/strong><\/h4>\n

    Within 30 days of incorporation, the BOD or the Board of Directors will appoint the Company\u2019s first auditor, who will serve until the 1st Annual General Meeting or the AGM. The submission of ADT-1 is not required in the case of the First Auditor.<\/p>\n

    5) Subsequent Auditor<\/strong><\/h4>\n

    In the first AGM of the Company, the BOD shall assign the Auditor, who shall hold the post until the end of the sixth AGM, and shall inform the ROC by submitting ADT-1. The Company, not the Auditor, can file Form ADT 1 within 15 days after appointment.<\/p>\n

    6) AGM or Annual General Meeting<\/strong><\/h4>\n

    Every company must convene an Annual General Meeting or an AGM during business hours on or before September 30th of each year between the timings of 9 AM to 6 PM. On a day that is not a national holiday, and at the Company\u2019s certified or registered office in the city, town, or village where the certified or registered office is duly located. It is necessary to provide a 21-day notice for this.<\/p>\n

    7) Filing of Annual Return, i.e., Form MGT \u2013 7<\/strong><\/h4>\n

    Within 60 days after the AGM or the Annual General Meeting, every Private Limited Company is required to file its Annual Return. The annual return will cover the period from April 1 to March 31.<\/p>\n

    8) Filing the Financial Statements in Form AOC\u20134<\/strong><\/h4>\n

    Every private Limited Company is required to file its \u2018Balance Sheet\u2019, as well as a statement of \u2018Profit and Loss Account\u2019 and a \u2018Director Report\u2019, in this Form within 30 days of the \u2018Annual General Meeting\u2019 being conducted by the company.<\/p>\n

    9) Statutory Auditing of the Accounts<\/strong><\/h4>\n

    Every company should prepare its financial statements and have them audited by a professional\/Chartered Accountant at the conclusion of the fiscal year. To be filed with the Registrar,\u00a0the Auditor must supply an Audit Report as well as the Audited Financial Statements.<\/p>\n

    Other Non-ROC Compliances<\/h3>\n

    The following are some examples of non-ROC compliance for private limited companies;<\/p>\n