Company Compliances to be done in a financial year by Private limited Companies under Companies Act, 2013.

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Company Compliances to be done in a financial year by Private limited Companies under Companies Act, 2013.

 

There are various company compliances under companies Act, 2013 which needs to be taken care by each private limited company. If there is a failure then its reparation are heavy. In this article, I will discuss only compliances parts other than Income Tax and GST which are needs to be done in Company Act 2013.

  1. Appointment of Auditor:
  • It is an initial compliance which everyIndian companyneeds to be done.Company must appoint a statutory auditor within 30 days of incorporation.
  • If the company fails to do so, then company won’t be allowed to commence its business &penalty of Rs. 300 per month will be attracted.

 

  1. Commencement of Business:
  • Company incorporating after November -2019 needs to obtain its commencement of business certificate within 180 days from the incorporation.
  • In this procedure company needs to put it’s paid up share capital into the bank account.
  • This is one of the important compliance failure to which company can’t start its business or exersice its borrowing power.
  • Also without this compliance, company is not able to comply with other statutory comply like Director’s e-KYC.
  • In case the individual fails to obtain this certificate, there is a penalty of Rs. 50,000 for the company Rs. 1000 per day for the directors for each day of default.

 

  1. DIN e-KYC:
  • This Compliance is required in each year.All the directors of the company must be filed for the DIN eKYC or DIR-3 eKYC.
  • In DIR-3 eKYC, the Director must provide a unique personal mobile number and a personal email address.
  • There’s a penalty of Rs. 5000 in case of failure to file DIN eKYC.

 

  1. Filing of AOC -4:
  • Form AOC-4 is used to file the financial statements for each financial year with the Registrar of Companies (ROC). In the case of consolidated financial statements, the company shall file the AOC-4 CFS.
  • Form AOC-4 should be normally file within 30 days from the last date when the AGM should have been held. This means Form AOC-4 should be filed latest by the October 30th of the relevant Assessment year.
  • In case of One Person Company (OPC) then within 180 days from the end of the financial year.
  • Failure to file AOC-4 will attract a penalty of Rs. 200 per day of default or delay.

 

In following situations due dates are as follows:

Status of the Company Due dates with ROC
Financial statement adopted at the AGM Within 30 days of the annual general meeting along with fees/additional fees as given under section 403 & In case of OPC the time period shall be taken as 180 days from the closure of the financial year.
In case of an adjourned meeting Within 30 days of the adjourned annual general meeting along with fees/additional fees as prescribed.
If financial statements are unadopted Within 30 days of the annual general meeting.
If AGM is not held Within 30 days from the date when the AGM should have been held along with fees/additional fees as prescribed.

 

 

  1. MGT-7:
  • It is an annual return which needs to file by every company.
  • In this return basic information related to company, its shareholders, directors etc. as on the last day of the financial year i.e 31st March
  • Form MGT-7 is needs to be furnish within 60 days from the date of AGM of the Company.

 

  1. Form DPT-3:
  • Every company other than a government company must file this return in DPT 3. It is required to be filed annually.
  • The due date for filing the annual return is 30th June of every year.
  • If the company does not comply with the requirements of DPT-3 and keeps accepting deposits then it will face the following consequences:
  • A Penalty of minimum 1 crore or twice the amount of deposits whichever is lower, and which extend to Rs.10 Cr.
  • For every officer who is in default imprisonment up to 7 years and with a fine not less than Rs. 25 lakhs which may extend to Rs. 2 crores.
  • Under Rule 21, on the company and every officer in default a fine which may extend up to Rs. 5,000 and where the contravention is a continuing one a fine of Rs. 500 for every Day since the default taken place.

 

  1. MSME Form -I:
  • It is half yearly compliance which is mandatory for every company in each year. Companies have to file this return only when they have payments outstanding for more than 45 days to the MSME supplier.
  • The companies need not file a ‘Nil MSME-1 Return’ when there are no outstanding amounts with the MSME suppliers.
  • Due date:

For April to September:31st October

For October to March: 30th April

 

  1. Holding of AGM :
  • For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the Financial Year.

 

 

 

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