Compliances to do in Private limited company
Running a Private Limited Business in India requires following a whole set of statutory compliance norms that assure smooth operations and legal compliance. Non-compliance could result in penalties, director disqualification, or possibly company closure. Here is a simplified compliance checklist for pvt ltd firm:
1 Incorporation Compliance
· Certificate of Incorporation: Ensure that the firm is registered under the Companies Act 2013 and has a valid Certificate of Incorporation.
· PAN and TAN: For tax purposes, you will need to obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number.
· Bank Account: Set up a corporate bank account in the name of the company.
2 Annual Compliance
· Board Meetings: Hold at least board meetings every year, with a maximum gap of 120 days between two meetings. Keep accurate records of these meetings.
· Annual General Meeting: Hold the Annual General Meeting within six months of the close of the financial year to submit the financial accounts to the shareholders.
· Filing of Financial Statements: The financial accounts of the company must be filed with the Registrar of Companies.
· Annual Return (Form MGT-7): File the company’s annual return, which includes information on shareholders, directors, and changes made throughout the year.
3 Income Tax Compliances
· Tax Returns: Complete your annual income tax compliances on time usually by July 31 for non-audit cases and October 31 for audit cases.
· Tax Audit: If applicable, conduct a tax and submit a report as per section 44 AB of the Income Tax Act.
· Advance Tax: Make advance tax installments if a company’s liabilities exceed Rs 10,000 in a given financial year.
4 GST Compliance
· GST Registration: If your turnover exceeds the specified limit, you should register for GST.
· GST Return: File GST returns on a monthly, quarterly, and yearly basis as required.
· GST Audit: If turnover exceeds the prescribed limit, get the GST audit done.
5 Registrar Of Companies (ROC) Filings
· Director KYC: Ensure that the KYC of all Directors is completed on an annual basis.
· Changes of Company Details: Filing the correct paperwork informs the ROC about changes in company details such as registered office or directors.
6 Employee-Related Compliances
· EPF and ESI: Sign up for the Employees Provident Fund and Employees State Insurance schemes, if appropriate and make timely contributions.
· Professional Taxes: Employees' professional taxes must be deducted and paid as per state rules.
7 Secretarial Compliances
· Maintenance of Statutory Registers: Maintain records such as Register of Members, Register of Directors and Key Management Personnel, and Register of Charges.
· Issue of Share Certificates: Share certificates must be issued to shareholders within two months of their allotment.
8 Other Compliance
· Auditor Appointment: Appoint a statutory auditor within 30 days of incorporation and ensure they are reappointed or rotated per the rules.
· Comply Signboard: Every office must have the company’s name and registered office address displayed outside.
· Commencement of Business: File this form within 180 days of incorporation to confirm that the company has received the subscription amount.