If we think to commence our new business in the form of a company (whether public or private), the first step is to incorporate a company as per the Companies Act, 2013 and it is really an exhilarating moment for business startup journey to obtain a Certificate of Incorporation. Once the company has incorporated, it has to be adhered with timely compliances under various applicable laws, after incorporation and till it dissolution.
Just to incorporate a company and start business is not enough, to run a successful business one has to take care about regular and timely compliances for smooth functioning of the business and avoidance of penalty & fine for non- compliances.
Here, we will talk about the compliances which are required to be done by a Private Limited Company after its incorporation. Following are the various compliances under the Companies Act, 2013 and other laws which are required to be complied by the private company on timely basis after its incorporation, for running hustle free business.
1. Name of the Company:
The name of company, CIN, address of its registered office, mobile number, email address, website (if any) shall be displayed whether printed or affixed outside the every place of business in the legible character.
2. Registered Office of the Company:
If a company has not given the name of registered office address while incorporation then it shall have a registered office within a period of 30 days from its incorporation and shall intimate to Registrar of Companies (ROC) in form INC-22. All the communications with the company shall be made through its registered office. The registered office of the company is required for receiving and acknowledging all the documents as may be addressed
3. GST Registration:
If the company deals in interstate supply of goods or services or turnover exceed threshold limit then it shall require to have GSTIN just after its incorporation and shall display GSTIN outside its place of business, letter heads, billboards etc in legible manner.
4. First Board Meeting:
Hold first meeting of the Board of Directors within a period of 30 days from the date of incorporation of the company.
Subsequent Board Meetings: Hold minimum 4 Board Meetings in one calendar year and the gap between two Board Meetings shall not exceed 120 days.
5. First Auditor:
The first auditor shall be appointed by the board of directors within a period of 30 days from the date of incorporation of the company and if there is failure in appointment then Board shall intimate to the members & members shall appoint first auditor within a period of 90 days in the extra ordinary general meeting. The office of first auditor shall be up to the conclusion of first annual general meeting.
Subsequent Auditor: The subsequent auditor shall be appointed in the annual general meeting for a period of 5 years.
6.First Annual General Meeting:
It shall be held within 9 months from the end of first financial year.
Subsequent Annual General Meeting: It shall be held within 6 months from the end of financial year.
Every Company shall file a copy of financial statements adopted by members in the annual general meeting within 30 days from the date of annual general meeting in e-form AOC – 4 and annual return within 60 days from the date of annual general meeting in e-form MGT – 7.
7. Certificate of commencement of business :
Every company shall obtain certificate of commencement of business within 180 days from the date of incorporation by filing an e-form INC 20A. In case company does not obtain certificate then it may face hefty penalty for non-compliance.
The minutes of every meeting of Board of Directors & Members shall be maintain as per Section 118 of the Companies Act, 2013 and Secretarial Standards 1 & 2 and kept at registered office of the company.
9. Books of accounts :
Every company shall prepare & maintain proper books of accounts & other financial records at its registered office or some other place (by passing board resolution in the Board Meeting and intimation to the Registrar of Companies).
10. Statutory registers :
The companies are required to maintain all statutory registers as per the Companies Act, 2013 on timely basis. Eg. Maintenance of Register of Members, Register of Investments, Register of Charges, Register of Directors and other KMPs etc.
11. Income tax return (ITR):
As per the provision of Income Tax Act, all companies registered in India i.e. private limited company, public limited, one person company are required file income tax return each year in addition to MCA annual return, companies must also file income tax return irrespective of income, profit or loss. Private limited companies, limited companies and one person companies would be required to file Form ITR -6. The due date for filing income tax return for a company is on or before the 30th of September. Every company shall file its return of income of Previous Year in the Assessment Year as per Section 139 of the Income Tax Act, 1961.
12. KYC of Director:
The KYC of every Director who has obtained DIN on or before the end of Financial Year would be mandatorily required to file e-form DIR – 3 KYC on or before 30th September of the immediately next financial year.
1. Due date of income tax return:
The due date for filing income tax return in Form ITR-6 for a company is on or before the 30th of September.
2. Due date of AOC-4:
Private Companies registered under Companies Act, 2013 are required to file their financial statement in Form AOC-4 within 30 days of holding Annual General Meeting.
3. Due date of MGT-7:
Private Companies registered under Companies Act, 2013 are required to file their annual return in Form MGT-7 within 60 days of holding Annual General Meeting.
4. Due date of Active Form INC-22A:
Companies registered before 31st december 2017 are required to file eform Active (Active Company Tagging Identities and Verification) in eform INC-22A before 25th april and penalty for non filling is Rs 10,000.
5. Due Date of Appointment of Auditor:
As per section 139(6) the first auditor of the company other than a government company shall be appointed by the Board within 30 days of Incorporation. In case of Board’s failure, an EGM shall be called within 90 days to appoint the first auditor. The law is silent regarding from when this time limit of 90 days be reckoned, it is better to take a stricter view and interpret that the 90 days limit starts from Incorporation rather than expiry of 30 days. Subsequent Auditor will be appoint in the AGM of the company. Company shall file ADT-1 within 15 days from the conclusion of AGM.
Apart from above mentioned compliances, there are many more compliances under various laws which are required to be complied by a company time to time.
Hope you have liked our article. Wishing you good and healthy company with ahead!!
Basic Features to Read before starting private limited company
Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .