Annual Compliance Services for PVT & LLP Company

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Annual Filing of Company - An Overview

Company compliance is an important aspect that has to be taken into account while running a business. It is mandatory to adhere to all the ROC compliance to avoid penalties. All private limited companies, one-person companies, limited companies, and section 8 companies must maintain annual compliance with respect to the Companies Act of 2013. These company compliances are usually independent of the total turnover or the capital amount involved. The ROC compliance for registered private limited companies is mandatory. Not being able to adhere to the annual compliances for private limited companies may result in serious action on the firm.

In reality, it is tough to maintain all the annual compliances for private limited companies. That is why TheLegalLabs is here to help with the annual filings of companies and provide information regarding company compliances.

Annual Compliance for Private Limited Company

Similar to other businesses, the annual compliance of private limited companies should be taken seriously. All the company compliances should be filed on or before the due date. Here are some of the private limited company compliances that you should not miss.

1. Business Commencement Certificate

As a part of the annual compliance for private limited companies, it is mandatory to have a business commencement certificate within 180 days of company incorporation. This applies to companies registered after November 2019 and having a share capital.

Penalty for not following this annual compliance: If you fail to procure the certificate of commencement, the company will be subjected to a penalty of ₹50000 and the director should pay ₹1000 for each default day.

2. Appointing an Auditor

Within 30 days of incorporation, an auditor must be appointed as per the ROC compliance. The annual filing of a company should include all of this information.

Penalty for not following this annual compliance: Breaching this private limited company compliance results in a fine of ₹300 per month. Subsequently, the company will not be allowed to conduct business until they appoint an auditor.

3. Filing ITR returns

For private limited companies, this annual compliance is crucial. Every year the income tax returns have to be filed on or before the due date.

4. Submitting MCA Form AOC-4

Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 13 November.
Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹200 per day of default.

5. Filing MCA Form MGT-7

Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 13 November.
Penalty for not following this annual compliance: Failure to file this form will result in a penalty of ₹200 per day of default.

6. Filing for DINeKYC.

As per the ROC compliance, every private limited company should have a director. To perform all the tasks without difficulty, a Director Identification Number (DIN) is required. The director of the company should file DIN eKYC within the speculated period.

7. Hold Annual General Meetings (AGM)

This is crucial for annual compliance for private limited companies. During the annual filing of companies, all information about the AGM should be provided. It is required to hold an AGM within six months of the end of the fiscal year by ROC compliance.

8. Directors Report

Private company compliance involves providing director reports on time with the ROC and MCA. All the information should be submitted without fail as per Section 134.

Company Compliance Services Package for Private Limited Company

TheLegalLabs is here to make the annual compliances much more easy, our annual Compliances for Private Limited Company entails the following:

• Appointment of the auditor and submission of form ADT-01 (auditor appointment)

• Creating and submitting the Inc. form 20A (declaration of commencement of business)

• We will file the balance sheet, p&l accounts, audit report, and director's report

• Extraction of annual returns and financial statements (unlimited transactions) preparation and filing, if provided in an excel sheet

• Completing and submitting form AOC-04 for annual returns (financials related annual return)

• Completing and submitting form MGT-07 for annual returns (Management related annual return)

• Composing and filing the minutes of all 4 AGM

• Filing and preparing income tax returns (company) for Fy(2022-2023)

• Creating stock certificates (for all shareholders)

• The creation and filing of 7 required registers

• Preparing and submitting MPB-01 (disclosure of interest by directors)

• Creating and submitting the DIR-08 (disclosure of non-disqualification by directors)

• For all the directors KYC Dir-3 will be provided

• Every monthly, quarterly, and annual compliance requirement will be met

• Chartered accountants and a company secretary support all required statutory and secretarial compliance

• Complete business advisory/support services provided by qualified chartered accountants and company secretaries with years of experience

• ESIC Online Registration

• Online GST Filing returns

• 10 sample legal contracts

• One solely committed account manager.

Other Annual Compliances for Companies

Apart from the above mentioned company compliances the following should also be completed from time to time.

• GST returns, monthly, quarterly, and annual

• Periodic TDS Return Filing

• Calculation of the tax liability in advance

• Income tax return filing

• Report of tax audit filed

• Submitting semi-annual easy returns

• Submitting PF returns

• Professional tax return filing

• Regulation evaluation and reporting by various laws (Eg. Environment and Protection Act, Competition Act, Factory Act, etc.)

How TheLegalLabs Can Help in Annual compliance

Accounting

After each fiscal year, all businesses are required to maintain accounts and prepare financial statements. Our compliance manager will assist your company with account maintenance and will create your company's financial statement at the end of the fiscal year.

Services for Secretaries

Each financial year, businesses must hold a minimum of four board meetings, an annual general meeting, a director's report, and an annual report. You will receive assistance from our compliance manager in creating all secretarial reports and board meeting minutes.

Filing of MCA Annual Return

The annual general meeting of a company shall be held within six months after the end of the fiscal year. An MCA annual return must also be submitted by 30 September at the latest. The MCA annual return for your business will be prepared and filed by our compliance manager.

Filing Income Tax Returns

Regardless of income, profit, or loss, a company must file an income tax return. As a result, even inactive businesses that have no transactions must file an income tax return each year. All the paperwork will be created by our compliance manager, along with the income tax return for your business.

What Is Compliance in Business?

Compliance is defined as "the action of complying with a command" or "the state of meeting rules or standards." It is defined in the business world as the process of ensuring that your company and its employees comply with all applicable laws, regulations, standards, and ethical practices.

Internal policies and procedures, as well as federal and state laws, are all covered by corporate compliance. Enforcing business compliance assists your company in preventing and detecting rule violations, which protects your organisation from fines and lawsuits.

The process of company complaince should be ongoing. Many organisations establish a programme to govern their company compliance policies in a consistent and accurate manner over time.

Importance of Online Accounting & Company Compliance Services in India

Budgeting

It assists organisations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals.

Evaluating the Business's Performance

Helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on.

Managing Cash Flow

Keeping track of the money that comes into the business on a regular basis helps in projecting patterns, paying employees and suppliers, repaying debts, etc.

Financial Information to Investors and Stakeholders

Investors will gain a better understanding of the business's financial health, including its solvency, creditworthiness, liquidity, stock, and bond issuers.

Mandatory by Law

In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.

Importance of Company Compliance Services

Compliance Demands Grow With Your Business

"Compliance" in business refers to meeting legal requirements to protect the health, safety, and welfare of others. Obtaining a business licence and paying taxes are both examples of compliance. Business compliance challenges become more difficult as your company grows. You'll be responsible for more hiring, firing, discrimination, harassment, safety, wages, payroll, and benefits. A government entity may regulate how you create and market your product or service, such as a restaurant following health department requirements.

Reduced Legal Issues

Compliance in a company reduces the danger of fines, penalties, work stoppages, lawsuits, or business shutdown. When you fail to meet company compliance requirements, such as posting a job advertisement in the incorrect location, you may receive a warning and an opportunity to correct the problem. You may face hefty sanctions in other scenarios. Failure to adhere to legal obligations in manufacturing or advertising can help a plaintiff's case. Hire a compliance specialist to assist you in understanding your legal obligations.

Improved Operations and Safety

Many business rules are helpful. Discrimination and harassment rules help you establish a better workplace for your employees, which can boost productivity. Following safety guidelines helps to avoid injuries, fires, and building evacuations, all of which reduce profits. Examine the Occupational Safety and Health Administration's and the Equal Employment Opportunity Commission's websites for suggested business practises to strengthen and protect your company's operations.

Better Public Relations

Improve PR business compliance enables you to publicise your legal obligations on your website and in marketing materials. In employment ads, say you're an equal opportunity employer. In your mission statement, state that you do not discriminate on the basis of race, gender, creed, or sexual orientation. When hiring new employees, emphasise your company's commitment to physical and mental health by emphasising policies and benefits such as extended maternity and paternity leave and free gym memberships.

Increased Retention

Employee safety is frequently at the heart of company compliance issues. More employees will stay if they believe they work in a fair, professional, and safe atmosphere. You may lose key employees if you do not take steps to ensure that none of your employees harass or discriminate. The following is a list of the best restaurants in the area. Only strong policies are enforced. Your policy should describe the mechanism for dealing with transgressions, such as reprimand and additional training for a first infraction and suspension or termination for a second. Check in with intermediate managers or supervisors to ensure that complaints are handled properly.

Types of Business Compliance

1. Regulatory Compliance

Regulatory compliance occurs when a company adheres to the local and international laws and regulations that apply to its operations. Depending on the business and the industry it's operating in, the requirements of regulatory company compliance will vary.

If you own a business, you understand how time-consuming it can be to establish trust with your employees, customers, and suppliers. A lot of this effort is centred around you and your business doing the right thing, both legally and ethically.

Regulatory compliance for business ensures that your company follows the law in order to establish trust. You can watch your company's reputation improve as it grows.

2. HR Compliance

HR compliance for business encompasses all business policies and procedures that ensure your organisation is operating legally and with your employees' welfare at the forefront of everything you do. HR business compliance ensures that your company complies with employment laws and employee-related concerns.

HR compliance includes topics such as employee documentation, hiring procedures, when and how to pay overtime, recruiting, and employee benefits. When your company follows these HR procedures, it is more likely to have a happy and productive workforce and is less likely to face HR complaints or legal issues.

3. Data Compliance

Businesses nowadays collect and store a large amount of data. Whether it's data about their customers or their employees, businesses have access to a lot of personal information. As such, data compliance is a necessity.

Data compliance ensures that your organisation is correctly and legally collecting, organising, storing, and managing data. If your company is data compliant, all of its data must be protected from corruption, loss, theft, and misuse.

According to Compliance Online: Data is the fuel of decision making, continuous improvement, quality and demonstration of clinical value. Data is to a company what gasoline is to a car. The engine is damaged if the fuel is contaminated. If the integrity of the data is disrupted, it can harm the organisation's reputation and even result in a winding up of a company.

4. Health and Safety Compliance

When most people think of health and safety compliance, they think of the healthcare industry. And that's understandable. After all, those working as doctors, nurses, and surgeons have to comply with the laws of health and safety, both for the protection of their patients and also for the continued provision of their practice/hospital services.

However, health and safety company compliance is applicable to all businesses and industries, not just those in the healthcare industry. This is because providing a safe working environment is an important aspect of health and safety compliance. This ensures that your employees can work to the best of their abilities without putting themselves in danger or risking injury. Failure to comply with health and safety regulations can be costly, resulting in serious accidents, illness, and avoidable workplace incidents.

Compliances under the Companies Act 2013

A company that has been incorporated in India must follow the Companies Act, 2013:

• The Companies Act of 2013 governs the appointment, qualification, remuneration, and retirement of company directors

• Aspects such as how board meetings and shareholders meetings should be conducted

• The preparation and presentation of annual accounts, as well as the regular upkeep of accounting books.

Process of Filing Annual compliance services

The mandatory annual company compliances that most businesses must meet are as follows. At TheLegalLabs, our qualified chartered accountants, accounting and taxation professionals, and company secretaries will handle all of your company annual compliance needs. We offer the best-in-class legal consultation for your company. Our team will cover the following company compliance requirements as mandated by the Ministry of Corporate Affairs.

Facilitation of meetings of board of directors:

The first meeting has to be conducted within 30 days of incorporating a business after which four meetings shall be held every quarter in a calendar year. There should not be more than 120 days between two consecutive meetings.

Preparation of the minutes of proceedings of meeting:

Every company needs to file its minutes of the meetings and they shall be preserved permanently to add value in case of any dispute. The meeting minutes are to be maintained at the registered office.

Issuance of share certificates:

The company is required to issue a share certificate to the subscribers of the memorandum within 60 days of incorporation.

Filing of disclosures of directors’ interests and declarations of disqualification:

In the first board meeting, all the directors are required to make disclosures about their interests in other business entities.

Filing declarations of commencement of business with the RoC:

This has to be done upon registration of the company. Form INC 20A mandatorily needs to be filed within 180 days of incorporation.

Facilitation of annual general meetings:

A company shall conduct at least one AGM each year. The first AGM shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.
Annual compliance returns of the company need to be filed with the RoC within 60 days of the conclusion of the AGM.

Quarterly compliance:

Every company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.

Statutory registrations:

All statutory registrations like GST registration, Provident fund registration, ESI registration, IEC registration, etc. must be completed.

Why TheLegalLabs?

When it comes to annual compliance, it is better to leave it to our compliance managers. Yes, our team of in-house chartered accountants and lawyers can effectively help in all the annual compliances. Get on a call with a business expert and resolve all your queries. Our team will provide a complete road map to the whole process and help you with all the company compliances. All this at affordable prices.

Frequently Asked Questions (FAQs)

• What is the main purpose of Compliance?

Compliance is important for all businesses. The main purpose is to make sure a company follows all laws, rules, and standards that apply to it. This can include laws about taxes, employee safety, and environmental impacts. Following these laws helps companies avoid legal trouble and maintains their good reputation.

• What is the cost of filing Annual Compliance for a Private Limited Company?

The cost of filing Annual Compliance for a Private Limited Company can vary. This depends on factors like the size of the company and the complexity of its business. In general, the cost might range from ₹15,000-30,000 per year. But remember, this is just a rough guide. The actual cost for your business could be different.

• What are compliance services in India?

It refers to a range of services offered by accounting and consulting firms to help businesses comply with various laws and regulations, such as tax compliance, statutory compliance, and regulatory compliance. These services may include tax planning, filing of tax returns, compliance with labour laws, and compliance with industry-specific regulations, among others. TheLegalLabs Provides a one stop solution for all the compliance needs.

• Which form must be submitted to appoint a statutory auditor?

When the statutory auditor is appointed or replaced, Form ADT-1 is submitted.

• The company's director report must be accompanied by which form?

The director report for the company includes MGT-9, an excerpt from MGT -7.

• Are audited financial statements required for private limited companies' yearly filings?

Every company must have audited financial statements since it was incorporated. Only the audited statements must be filed by the company.

• What regulations must a private limited company follow?

Once a company is incorporated, it must continue to comply with all regulations. It takes 30 days to appoint the auditor. The filing of annual returns and income taxes is an additional requirement.

• How should the company file its annual returns?

The following documents must be submitted to the ROC by companies that were incorporated by the Companies Act of 1956: a balance sheet in Form 23AC and a profit and loss account in form 23ACA, both of which must be submitted by each company.

• What is an annual compliance?

Annual compliance refers to the set of rules and regulations that a company must comply with on an annual basis. It includes filing of annual reports, conducting annual meetings, maintaining company records, and complying with tax regulations.

• Why is business compliance important?

Business compliance is important as it ensures that a company operates legally and ethically, and avoids potential legal or financial penalties. Compliance also helps in building the company's reputation, winning the trust of investors and customers, and attracting new business opportunities. Non-compliance can result in significant legal and financial risks, including fines, lawsuits, and damage to the company's reputation.

• What is annual compliance under the Companies Act?

Annual compliance refers to a set of mandatory obligations companies must fulfill each year to maintain good standing and continue operating legally. These obligations involve filing documents, conducting meetings, and updating information with the Ministry of Corporate Affairs (MCA) or relevant authorities.

• What is the basic compliance of a company?

Basic compliance includes:

1. Filing Annual Returns: Filing audited financial statements with the MCA within a specified timeframe.

2. Holding Annual General Meeting (AGM): Conducting an AGM within a defined period to inform shareholders about the company's performance and address their concerns.

3. Maintaining Statutory Registers: Keeping records of directors, shareholders, and meetings as prescribed by the Companies Act.

4. Director KYC Compliance: Updating KYC information for directors with the MCA.

• What is compliance in a Pvt Ltd company?

The main compliance requirements for a Pvt Ltd company are similar to those mentioned above, though specific deadlines and forms may vary slightly. Additionally, Pvt Ltd companies have specific compliances related to share capital, director residency, and internal management procedures.

• What are the benefits of annual compliance?

1. Maintains Legal Standing: Ensures your company operates legally and avoids penalties or strike-off from the register.

2. Improves Transparency: Regular filing of financial statements and reports enhances transparency and attracts investors.

3. Builds Trust: Demonstrates adherence to regulations, fostering trust with stakeholders and government agencies.

4. Simplifies Processes: Maintaining updated information facilitates smooth business operations and avoids complications.