What is annual compliance of a private limited company?
Swarit Advisors | Updated: Jun 02, 2018 | Category: Private Limited Company
Running a company is not an easy task, anyone with good experience will know that.The entrepreneurs are required to do some legal regulatory things as annual compliance of a private limited company. So let’s look at few of these, here we have a list of just few of the compliances that each private limited company needs to fulfill by law.
List of Annual Compliance of a Pvt Ltd Company
A minimum of four board meetings must be held in a period of one year, automatically meaning one board meeting quarterly (for other than Small Company). The directors must be present for the meeting.The quorum being 1/3rd or the two directors, and whichever will be greater. These board meetings are required to be logged and the signed number of minutes need to be maintained at the registered office.
The Annual general meeting
This meeting is a meeting for shareholders which must be held every single year. The approval for the financial statements, their declaration of the dividends, auditor’s appointment etc is the primary task for this meeting. The annual general meeting will be needed to be held in a city where company’s registered office is located.
Filing annual forms
There exist various forms required to be filed other than the annual financials. The information given is very detailed and its content is related to shareholders, the directors and financials etc. All of these forms are needed for certification by a practicing charted accountant or any practicing secretary of company. The companies that have paid up the capital of shares within the range of Rs 1 million to 50 million will be required for filing an annual compliance of a private limited company certificate from a company secretary that is in practice.
The yearly forms by the company’s directors
The company directors will need to inform their company regarding their directorship in the other companies every year.
Statutory register and minute’s book maintenance
Various registers will be required to be maintained, like register of members or the register of the directors, contracts, charges etc. The registers are needed to be kept at the company’s registered office.
What are the Compliances based on events?
These events are certain events based on triggers, for example –
- A receipt of the shares money for application.
- Allotment of the shares.
- The appointment of the full time director or the managing director.
- Transfer of the shares
- The director’s Registration and appointment.
- The executive agreement with related parties.
- changing of the bank signatures
- Changing of the statutory auditors.
The paperwork for all of the above and along with their various deadlines for these tasks. Just in the case of non-compliance or even a deadline that’s been missed then there can be penalties and additional fees liability or even a compounding offence etc. Therefore, it’s highly necessary that the procedure of annual compliance of a private limited company must be tracked and the compliances met with the time frame. If you have any further queries regarding this then you may consult our specialists who can help you with proper guidance. We are always available to help you in offering constant support and help through our helpline number and email. Feel free to contact us anytime we will feel glad to serve you in the best possible ways.
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