TopicAnnual Compliance of Private Limited Company (PLCs)
7 postsThu 30th Jul 2020 - 7:40am
In general, people choose Private limited companies because of fewer formalities. It is the most popular and well-known starter form. However, some of the required mandatory compliance requirements must be met annually. Managing the company’s daily tasks, in addition to complying with company law, can be problematic for all entrepreneurs. Therefore, it is very important to seek help from experts or specialists and review these legal requirements to ensure compliance. Any deviation from these conformities will be sanctioned or punished.
These are the mandatory compliance for private limited companies :
1. Appointment of the auditor
A designated person should be appointed as an auditor. It must be designated for five years and the ADT-1 form must be designated for five years. The first auditor must be appointed within the month following the creation of the company.
2. Statutory Audit of Account
All companies must prepare their accounts and must be audited by an auditor at the end of each financial year. The auditor issues the audit report and the annual financial statements of the company and submits them to the Registrar. The audit is mandatory to determine the fair presentation of corporate finances. During the audit, the auditor verifies bank deposits and other financial transactions.
3. Filing/Presentation of the annual declaration.
Each company must file an annual return for a financial year (April 1 to March 31). The return must be made within 60 days after the call of the general meeting. This will provide the contact details of its shareholders, directors, etc. to the company registrar.
4. Filing of Annual Return
Each private company must present its balance sheet with a profit and loss account and also a report from the board of directors. This report must be submitted within 30 days of the annual report.
5. Filing of Financial Statement.
Companies must hold a general meeting every year. The meeting must be scheduled within six months after the end of each fiscal year. It is the annual meeting of members or shareholders. In this session, a company presents reports on company performance and other metrics. At this meeting, during which the share nomination is voted, the owners are also questioned.
6. Preparation of the Management report.
The director must provide all the information required under article 134 of the Companies Act of 2013. Each director must disclose her instructions using a written declaration in the specified format.
7. Board meetings
The board meeting is commonly known as the board meeting. It must be held within 30 days after the constitution of the company and at least 4 board meetings per year, that is, one every 3 months. The quorum for the meeting is 2 directors, that is, 1/3 of the total number of directors. Besides, all meeting minutes must be recorded as meeting minutes. Besides, the agenda for the discussion must be communicated 7 days after the meeting.
8. Record keeping and legal records.
Private limited companies must maintain various legal records and records, such as B. The offer record, member record, director record, etc. Besides, the founding files of the company, the resolutions of the board meetings, the minutes of the board and the meetings of the general assembly, etc. It must also be maintained by the company. These records must be kept at the registered office of the company and its members can consult them during business hours. Additionally, each company’s accounts must be maintained and maintained in good standing for at least eight financial years.
Impact/Effect of Compliance
In such circumstances, if a company fails to comply with the company’s rules and regulations, the company and any late directors will be fined for the period in which the arrears occur. In the event of late submission, an additional fee must be paid at this point, which will increase as the day of default increases. It should be noted that part of the annual registration forms can also be changed, but the registration fee that is subsequently changed will be charged as a new registration.
*Connect with the team CORPSEED to discuss specific requirements for your business.*Viyom Sinha