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Private limited companies are one of the most common forms of business structure in India. Because of its simple registration process and several advantages, entrepreneurs and start-ups are more inclined to it. But these companies should never forget to comply with the annual compliance or filing annual returns within the prescribed time. Any delay or non-filing of yearly returns will lead to a hefty penalty and will keep increasing with every passing day.
Therefore, to help you to avoid such situations, we have brought to you by updated annual compliance for private limited companies for the year 2019. Continue reading the blog until the end so that you don’t miss any crucial detail.
What is annual compliance of Private Limited Company under Companies Act, 2013?
Annual compliance, as the name suggests, is the compliance that is supposed to be filed annually. Every private limited company is subject to present their details, whether the financial statements or details of loans, details of every shareholder and director, etc. via filing the prescribed forms. The necessity of filing these compliances is to ensure companies are following the provisions of Companies Act, 2013.
What annual compliance Private Limited Companies need to file with ROC in 2019?
There are annual compliance that every company registered as a Private limited has to follow. Below we have mentioned a list of various forms need to be filed with ROC (Registrar of Companies) by the private companies along with their due dates:
|ROC Forms||Due Date|
MSME 1 (initial)
|Within 30 days from the date of availability of form on MCA portal|
One time DPT3
|Within 90 days from the date of notifications, i.e., 20th April 2019|
|E-form ACTIVE (INC-22A)||On or before 25th April 2019|
|DIN 3KYC||On or before 30th April 2019|
|MSME 1 (1st Half)||On or before 30th April 2019|
|Annual DPT 3||On or before 30th April 2019|
|Annual Filing AOC 4||On or before 30th April 2019|
|MSME 1 (2nd half)||On or before 30th October 2019|
|Annual Return MGT 7||On or before 29th November 2019|
As per notification number S.O. 5622 (E), dated 2nd November 2018, all companies shall submit a half yearly return MSME 1 to the MCA (Ministry of Corporate Affairs) if-
- They are receiving supplies of goods or services from micro and small enterprises; and
- Companies whose payments to micro and small enterprise supplies surpasses 45 days from the date of acceptance.
The due dates for filing MSME 1 are as follows:
- Within 30 days from the date of availability of form on MCA portal for filing MSME 1 (initial form).
- On or before 30th April 2019 for filing MSME 1 (1st half).
- MSME 1 (2nd half)-on or before 31st.
Every company, other than the Government Company, shall mandatorily file DPT 3 with the Registrar of Companies. The form DPT-3 is a onetime return of outstanding receipt of loan or money taken by the company.
Every company falling under the category of the following are required to file DPT-3 compulsorily:
- Public Limited Company,
- Private Limited Company,
- One Person Company, and
- Section 8C Company.
Companies need to file this form before within 90 days from the date of notifications, i.e. 20th April 2019. The next time, it needs to be filed on or before 30th April 2019.
E-form ACTIVE or e-form INC – 22A (newly introduced)
E-form ACTIVE is an electronic form for Active Company Tagging Identities and Verification. The form is specifically introduced to ensure that the companies follow the compliances of the provisions of Companies Act, 2013 actively. Moreover, it confirms that the particulars of the companies’ registered office are valid and accurate. E-form INC-22A has been introduced this year only as one of the annual compliances of private limited companies.
All the companies registered on or before 31st December 2017 under the Companies Act, 2013 need to file the details of the companies and their registered office mandatorily. The date for filing e-Form ACTIVE has already started from 25th February 2019. However, the last for filing e-Form is 25th April 2019.
DIN 3 KYC
The concept of DIN .i.e. Director Identification Number was born with the introduction of Sections 266A to 266G of Companies (Amendment) Act, 2006. Every existing and intending directors have to obtain DIN within the prescribed time compulsorily.
For the FY19-20, every director who has already obtained DIN or whose DIN status is ‘Approved’ are mandatorily supposed to file form DIR-3 KYC or DIN-3 KYC on or before 30th April 2019.
Annual Filing of AOC 4
AOC-4 is an electronic form which every company needs to file with the Registrar of Companies (ROC) before the due date which is 30th April 2019. One can use this form explicitly for filing financial statements of the company.
Companies can use form AOC-4 (CFS) to file consolidated statements. However, companies with a capital of Rs. 5 crores or more, turnover Rs. 100 crores or more, and listed with stock exchange in India needs to file AOC-4 XBRL (extensible business reporting language).
Annual Return – MGT 7
MGT-7 is an e-form which is provided to all the companies by the Ministry of Corporate Affairs so that companies can file their annual return details. Registrar of Companies maintains this electronic form via an electronic channel. Further, the e-form ensures the statement of correctness given by the company.
The e-form MGT-7 is supposed to be filed by every private and public limited company registered in India every year. The due date for filing MGT-7 is 29th November 2019. The penalty for not filing this return could be Rs. 100 per day of default. Hence, every company must ensure that they file their return in MGT-7 before the due date.
What could be the consequences of non-compliance?
In case, any company fails to abide by the compliances or provisions of the Companies Act, 2013, then the company along with the concerned official shall be punishable with specific fines associated with particular compliance.
Secondly, any delay in filing the above forms will lead to an increase in fees every day from the due date of filing. Hence, it is advised to file every return on their prescribed time.
Hence, it’s clear that if you’re running a private limited company, then you would have to follow several annual compliances under the Companies Act, 2013. Furthermore, you need to ensure that you are filing the correct form keeping the due date into consideration. In addition, because complying with each compliance is a repetitive and daunting task, you need to be very careful. Hence, we advise you to avoid the last minute rush and file them at least fifteen days before the actual due date.
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