Annual Compliance for Private Limited Company
Annual Compliance

Annual Compliances Introduction:

A Private Company is a legal entity to enjoy the separate personality of its own through a regular filing with MCA. For initiating a business in growing age, it is essential to file an annual return and financial audit report with MCA. It is necessary for ROC filling irrespective of the turnover, it may be zero or crore.

However, Annual compliances for the private limited company has become mandatory for registered company, whether the company takes a single transaction or none—the annual filing of the company based on the time of the annual general meeting.

Mandatory Agreements of Annual Compliances:

First Board Meeting
Subsequent Board Meeting
First Auditor
Subsequent Auditor
Annual General Meeting
Filling of Annual Return (Form MGT-7)
Filling of Financial Statements (Form AOC-4)
Statutory Audit

Process of Filling Annual Compliance for Private Limited Company:

Firstly, the discussion needed for collecting information regarding the private limited company.

By getting request for annual compliance, there is a need to provide the essential documents for processing of private limited company.

After giving the required documents, should decide the due dates of ROC filing for private limited company.

Now drafting the necessary documents of annual compliances for a private limited company and also attached to the papers.

After providing the necessary documents, on day 5 of filing AOC for financial statements, it also needs to fill MGT for Annual Return.

Required Documents For Annual Filling of Company:

PAN Card
Certificate of Incorporation
MOA and AOA of Private Limited Company
Audited Financial Statements
Board Report
Independent Audit Report
Valid and Active DSC of one of the directors
Advantages of Annual Compliances for Private Company:

Expansion of Company’s Credibility:

Annual compliances law is the fundamental part and essential requirement for any business. The yearly return filling displayed on the Master Data on the MCA portal. With the date of the company's annual filing. The annual compliance of private company is the primary criteria to measure the credibility of an organization to gain the Government tenders, loan approves and others.

Influences The Investors:

When demanding the funds for any organization from investors, investors want to take a look at all financial histories and annual compliance return filling date. Moreover, The investors could also check the yearly compliances of the company from the MCA portal, which could attract the investors to provide funds.

Establishing the Active Status and Prevent form Penalties:

When filling the return has failed frequently then it charges the heavy penalties to the organization. Due to this, the company may default or remove from the ROC. However, the appointed directors may be disqualified for doing further activities. The additional fee will apply for late filing, and it has been started since July 2018.

Frequently Asked Question (FAQ):

Q1: Is annual filling is necessary for all companies?

Yes, the annual filling is necessary not only the private company but also for every registered company.

Q2: Is the appointment of statutory auditor mandatory under annual compliances?

No, an appointment of the statutory auditors cannot proceed as the part of annual compliances.

Q3: Which is the form for appointment of the statutory audit?

It requires to fill Form ADT-1 for appointment or replacement of Statutory audit.

Q4: Which form is closure to companies director report?

There is form filling of MGT-9 for the company's director report that exactly same as MGT-7 Form.

Q5: How can shares transfer of the company to the MCA?

MGT-7 Form is used to transfer the share of the company.

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

Annual Compliance for Private Limited Company
Maniraj Anantham 1 March, 2024
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