The private limited company is a proven, successful business model, there are various numerous compliances which are required to be complied once your company is incorporated under companies Act,2013. Managing the day to day operations of your business along with complying the corporate laws can be little tedious for any entrepreneur. Hence, it is absolutely necessary to take help of a competent professional and also understand such legal requirements to ensure timely fulfillment of compliances, without any levy of penalty.
After your Company is registered, Some of the mandatory Compliances for a Private Limited Company in India are listed below:-
Board Meetings :
- The First meeting of the Board of Directors of a Private Limited Company shall be conducted within 30 days from the date of Incorporation of company.
- Further, minimum Four Board Meetings shall be held in a calendar year (one meeting in every 3 months).
In case of a Private Limited Company which is classified as a “Small Company”, atleast two Board Meetings shall be held in a calendar year (one meeting in every half year)
- Most of the startups fall within the category of “Small Company”.
- The discussions of the meeting need to be drafted and recorded in the form of “Minutes of the Meeting” and maintained at the Registered Office of the Company.
Appointment of Auditors:
- Appointment of first auditor shall be made by board within 30 days of registration of company. If Board fails to appoint the first auditor within given time then it shall inform to members and members shall make the appointment of first auditor within 90 days of information at an EGM.
Annual General Meeting :
- Every Private Limited Company is required to hold a meeting of its shareholders once in every year within a period of six months from the date of closing of the financial year.
- The primary agenda of an AGM includes approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, appointment and remuneration of directors etc.
- The Annual General Meeting shall be held during business hours on a day which is not a public holiday and shall take place at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.
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- Private Limited Companies are required to file its Annual Accounts and Returns disclosing such requisite details to the Registrar of Companies annually .
- Form AOC-4 should be filed within 30 days from the date of Annual General Meeting. Form MGT-7 should be filed within 60 days from the date of Annual General Meeting.
Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Some of the Instances of such events are listed below:
- Change in Authorised or Paid up Capital of the Company.
- Allotment of new shares or transfer of shares
- Giving Loans to other Companies.
- Giving Loans to Directors
- Appointment of Managing or whole time Director and payment of remuneration.
- Loans to Directors
- Opening or closing of bank accounts or change in signatories of Bank account.
- Appointment or change of the Statutory Auditors of the Company.
Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.
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Maintenance of Statutory Registers and Records:
A Private Limited Company has to maintain various statutory registers and records as required by the Company law such as Register of shares, Register of Members, Register of Directors etc. Besides, Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc are also required to be preserved by the Company.
Such records are to be kept at the registered office of the company and shall be open for inspection to its members during business hours.
Also, the books of account of every company relating to a period of atleast eight financial years should be preserved and kept in good order.
Compliance by Directors
Every director has to disclose about his directorship in other companies every year. This shall be done by giving a declaration in writing to the company every year in a specified format.
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