Annual Compliance for a Private Limited Company

By Trademark Bazaar - 18th October 2017

Annual Compliance for a Private Limited Company

There is the number of compliance that a private limited company is required to fulfill.  These compliances include the filing of annual returns and statements, Appointment of auditors, conducting annual general meetings etc.  

The private limited company is a privately held business that is incorporated by minimum 2 members and maximum 200 members. It is a distinct legal entity from its members. The annual compliance requirement of the private limited company is more than the annual compliance requirement of business entities like partnership and proprietorship. The various annual compliance requirement for Private Limited Companies are as follows-

Appointment of auditors- Every Private Limited Company is required to file ADT 1 for the 5 years appointment of Auditors. The first auditor is required to be appointed within 30 days from the date of incorporation.

When the board of directors fails to appoint an auditor within the above timeline, it is required to inform the members of the company, who may then within 90 days of such intimation, appoint the first auditor of the company at an Extraordinary General Meeting.

The tenure of the director so appointed is to be till the conclusion of the first Annual General Meeting.

Filing of annual return- Every Private Limited Company is required to file its annual return in form MGT 7 within the period of 60 days from the last Annual General Meeting held. Annual return will be for the period 1st April to 31st March.

Filing of financial accounts – Every Private Limited Company is required to file AOC 4 for the Financial Accounts within 30 days from the conclusion of Annual General Meeting. Financial accounts will include balance sheet and the statement of profit and loss.

Income Tax Returns- Every Private Limited Company is required to file its Income Tax Returns before 30th September every year.

Holding Annual general meeting- Every private limited company is required to conduct an annual general meeting in every calendar year.

Holding board Meetings- Every company is required to conduct the first meeting of the Board of Directors of a Private Limited Company within 30 days from the date of Incorporation of company.

Minimum four Board Meetings shall be conducted in a calendar year (one meeting in every 3 months). In case of a Private Limited Company which is classified as a “Small Company”, at least two Board Meetings shall be held in a calendar year (one meeting in every half year).

Minimum 2 directors or 1/3rd of the total number of directors, whichever is greater, are required to be present in meeting of the Board of Directors.

The happening of the meeting is required to be recorded in the minutes and shall be filed with the registrar of companies.

 

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