To meet with legal requirements and maintain good governance standards every private limited company registered in India has to maintain certain statutory records and file documents with the Ministry of Corporate Affairs.
A detailed guide on this is covered in this Article:
Compliance related to the Meeting of the Board of Directors and Shareholders of the company:
Holding Board Meeting
Board meeting is an important part of a private limited company. Every private limited company is required to hold at least 4 board meetings in a year in such a manner that the interval between in two consecutive board meetings should not be more than one hundred and twenty days. A meeting of the Board of Directors can be called by giving a 7 days notice to the Directors. Board meetings can also be convened at a shorter notice. The quorum for a Board Meeting is 1/3rd of total strength OR 2 (Two) Directors, whichever is higher.
Preparing Minutes of Meetings
Maintenance of Statutory Registers:
The following statutory register are required to be maintained by every private limited company:
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Register of Charges (CHG-7)
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Register of Share Transfer (SH-10)
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Register of Members (MGT-1)
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Register of Directors and Key Managerial Personnel (DIR-12)
Holding Annual General Meeting (AGM)
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An annual General meeting must be held within six months from the end of the financial year and the last date to hold it is September 30th. It is a meeting of shareholders and the agenda is approval of financial statements, declaration of dividends, appointment/re-appointment of directors, and appointment/re-appointment of auditors.
Filing of Various forms with the Registrar of Companies
Form DPT-3- Return of Deposit (Loans, Advances, Grant, Subsidy & Others)
Filing of return of deposits or particulars of transactions considered as deposits and the transactions that are not covered as deposits. This form must be filled by every private limited company and it should be filled by June 30th every year.
Late fees can be up to 12 times of the normal fees after the due date.
Form MSME-1
A half-yearly returns for payments to Micro or Small enterprises. The frequency to file this form is half-yearly.
The due date to file the MSME-1 form is:
Late fees can be up to 12 times the normal fees after the due date.
Directors’ KYC
Every Individual who held a DIN number in the previous year has to file a DIR-3KYC form to keep his/her DIN in active status and this form must be filed by September 30th every year.
Late fees after the due date is: Rs.5000/- for each DIN
Statutory Audit
Statutory Audit by a Chartered accountant is mandatory for every private limited company, irrespective of turnover. The statutory audit of the financial records of the company is done by a statutory auditor who will be a full-time practicing chartered accountant and involves checking of compliance with accounting standards as well as the Companies Act, 2013.
Director’s Report
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Contents: Includes details about the company’s operations, financial performance, dividends, reserves, changes in directors, and other significant activities during the financial year.
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Attachments: Must be attached to the financial statements and filed with MCA.
Purpose: To record the company's statutory details as mandated by the Companies Act, 2013.
Form AOC-4- Filing of Financial Statement with ROC
Every private limited company has to file its financial statement along with statutory audit report, board of director report and other document every year and this form must be filled Within 30 days of holding the AGM.
Attachments to the form:
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Auditor Report along with Balance Sheet & Profit & Loss Account
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Cash Flow Statement
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Director’s Report
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Notice of AGM
Late fees after due date is Rs.100/- per day
Annual Return (Form MGT-7/7A)
A private limited company has to file a company's annual return, which includes details of shareholders, directors, and other key management personnel and this form should be file within 60 days of holding the AGM.
Key information and Attachments that required filing in this form are:
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Registered office address
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Principal business activities
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Details of shares, debentures, and other securities
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Details of directors and key managerial personnel
Late fees after due date is Rs.100/- per day
Form ADT-1-Appointment of Auditor
The company appoints it statutory auditor in Form ADT-1 and it is an Intimation of auditor appointment to the ROC. The time limit to file this form is within 15 days of the AGM. Frequency is once every five years, or whenever there is a change in the auditor
Late fees can be up to 12 times the normal fees after the due date.
The basic Compliance Costs of a small private limited company in initials years is approx 11,000/- P.a. which includes (Statutory Audit Fees, Income Tax Return Filing (ITR), Filing of form AOC-4, MGT-7A, Director KYC (DIR-3 KYC), DPT-3, MSME-1 and ADT-1 form, Board Meeting, and AGM.)