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ANNUAL COMPLIANCE

Annual Compliance is a very important part of running your business smoothly and for maintaining its legal identity. These compliances need to file by a Private Limited Company regularly. These compliances need to file with the Ministry of Corporate Affairs because failing to file such compliances may result in red-flagging by the MCA. 

Compliance for Private Limited Company needs to file in either of the two ways. Firstly, Annual Compliance and Secondly, Event-Based Compliance. The annual compliance is broader and contains several other types within it. You may also be required to fulfill the following compliances like self-compliance, one-time compliance, quarterly compliance along with maintaining the statutory records and registers.

Common Compliance to be filed by a Private Limited Company include:

        Profit and Loss Statement

Financial Statement

ROC Filing

             Income Tax Returns

MOM (Minutes of Meeting)

                 Annual Returns

WHY IS ANNUAL COMPLIANCE FILING IMPORTANT?

While it is mandatory to file the annual compliance, you should not see it as a burden. There are many benefits of remaining compliant :

  • Firstly, Maintains the Legal Identity of the Company

  • Secondly, Establishes a better relationship with the stakeholders

  • Thirdly, Reduces the risk at an organizational level

  • Fourthly, Enables transparent business functions

  • Fifthly, Helps in Employee Retention as it overall works in their benefit

  • Sixthly, Leads to better productivity

  • Seventhly, Brings a good name for the company in the market

HOW TO DOCUMENT ANNUAL COMPLIANCE OF A COMPANY?

As said above, compliance has to submit at regular intervals and thus they have to maintained properly throughout the year. Given below are a few details about it.

Self-compliance

When you start a business, you should ensure that there is a board outside your registered office that contains the name and address of your company in its regional language as well as in English. The website of your company must have the name of the company, registered office address, Corporate Identity Number, e-mail address, and the name of a contact person in case of grievances. Every letterhead and invoice of the company should also contain the above information.

One-time Compliance

To start the annual compliance process, you need to do four main things such as appoint the first auditor of your company, obtain statutory minutes’ binders, prepare and print the share certificates and prepare the statutory registers for the company.

Quarterly Compliance

Every 90 days after the start of the compliance process, you are required to draft the notice for a board meeting, hold the meeting, and then prepare the minutes of the meeting. The company is also required to prepare a sheet showing the attendees of the said board meeting.

Annual Compliance

Though annual compliance includes several documents, here we are mentioning some of the annual compliance’s documents:

  • Financials of the company- P&L Statement and Balance Sheet

  • Annual Return and Board’s Report for annual compliance of the company

  • Director’s Declaration and Disclosure of Interests

  • Minutes of the Annual General Meeting 

  • AOC 4, ADT 1 and MGT 7

  • Statutory Audit Report

  • Income Tax Returns of the Company with DSC

  • Advance Tax and Tax Audit Report

Apart from these, a private limited company is also required to maintain the statutory registers and records such as the register of shares, members, directors, etc. Other documents include incorporation documents, resolution of the meetings, minutes of board meetings, and more.

Maintaining all these annual compliance documents is not only a time-consuming task but also requires an expert eye. This is why easeURbusiness can be a good compliance companion for your business. Our team of seasoned CAs and tax experts guarantees perfect document maintenance and filing so that you never run behind on your compliance deadlines.

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