5 Mandatory Compliances For Private Limited Company

 

Introduction

Incorporation of the private limited company brings along some of the important and mandatory compliances that need to be carried out at a particular interval of time. These compliances are mandatory and hence any delay in doing so may attract late fees and in serious circumstances heavy penalties also. So let us discuss what these compliances are.

1) Director KYC:

Every director appointed in a company and having a valid DIN (Director Identification Number) will have to file Form DIR-3 KYC for the first time immediately after incorporation of the company. This KYC needs to be done once a year. While filing Form DIR-3 KYC for the first time you shall attach the director’s identity proof and address proof duly attested by a practicing professional. You will also be required to have the director’s mobile number and email id so that the contact details of directors can be verified through OTP (one-time password).  All the subsequent KYC of the director can be done through WEB-BASED KYC only and you do not need to file Form DIR -3 KYC thereafter. This form is to be filed only for the first year after incorporation.

2) Form DPT-3:

To safeguard the interest of the public at large who has invested in a company by way of deposits, MCA has made it mandatory for every company to file form DPT-3 annually declaring details of those transactions which are treated as deposits and also those transactions which are not to be considered as a deposit. Every company except a government company must file this return. Additionally, as per Rule 1(3) of the Companies (Acceptance of Deposits) Rules 2014, the following companies are also exempt:

-Banking company

-Non-Banking Financial Company

-A housing finance company registered with National Housing Bank

-Any other company as notified under proviso to subsection (1) to section 73 of the Act

The due date for filing the annual return is 30th June of every year. For example, for FY 2019-20, the due date for DPT-03 is 30th June 2020

(To know more about Deposits, please read our blog exclusively on Deposit)

3) Form MSME-

Any company who have received goods or services from MSME and payment to which is outstanding for more than 45 days are required to give details of such transactions in FORM MSME. This form is to be filed by each company on a half-yearly basis. The company needs to give detail as to how much amount is outstanding citing the reason for such delay in payment. The time limit of 45 days is to be counted from the date of acceptance of goods or services or the date of deemed acceptance of goods or services. From April to September the due date of filing this form is 31st Oct and from October to March, the due date is 30th April every year. There is no statutory filing fee or additional filing fee (late filing fee) for this form.

(To know more about MSME please refer to our article exclusively on MSME)

4)  Holding of Annual General Meeting:

Every company other than a One Person Company shall in each year hold an annual general meeting. The prominent purpose of this meeting is to consider and approve the financial statements of the company, to approve the director’s reports of the company, appointment or reappointment of the auditor of the company and any other business which must be transacted at AGM of company. The first AGM of the company immediately after its incorporation shall be held within nine months from the date of closing of the first financial year of the company. For all the subsequent years, an AGM shall be held within six months, from the date of closing of the financial year. The time gap between the two meetings cannot be more than 15 months.

5) Filing of Annual return of company (Form AOC-04 and MGT-7/7A)

Every company shall file form AOC-04 for filing of financial statements of a company and other documents to the registrar. The contents of this form shall include the details of the auditor who have audited the financial statements of the company, complete details about the profit and loss account of the company, details of the balance sheet of the company, disclosure about the related party transactions and Reporting of corporate social responsibility. This form is to be filed within 30 days from the date of holding of the Annual General Meeting.  The audited financial statements and board’s report shall be attached with this form.

Another form that forms a part of the company’s annual filing is FORM MGT-7/7A. All the small companies shall file from MGT-7A. The companies other than small companies shall file Form MGT-7. Form MGT-7 is called the Annual return of the company. The contents of form MGT-7 & MGT-7A are more or less similar to each other. The details such as the number of directors appointed or resigned during the previous financial year, the number of board meetings held, any other meetings held during the previous year, presence of each director in these meetings, Annual General Meeting held, the structure of share capital or any transfer of shares, the net worth of the company and so on are required to be filled in this form. This form is required to be filed within 60 days from the date of holding of the Annual General Meeting.

Any late filing of the above forms shall attract late filing fees of Rs. 100 per day over and above its statutory filing fees. 

Conclusion

The above-mentioned compliances are those compliances that every company is required to follow. Certain compliances need to be done only on the occurrence of a certain event or certain transactions. These are called event-based compliances. To know these event-based compliances please click on event-based compliances from private limited company the menu company compliances on our website.