PRIVATE LIMITED COMPANY
The word "Private Company" defined under Section 2(68) of the Companies Act 2013. It is now optional to keep any minimal capital. However, articles shall provide for
a. The private limited Company is restricted to transfer its shares;
b. The maximum number of its members is restricted to two hundred;
c. Prohibited to invite public to subscribe to its shares.
In the present write-up, you can understand the compliances to be done by the Private limited Company throughout the year.
Nowadays, it is easy to start a business through forming a private limited company.
Here is the list of compliances to be done by Private Limited Company. The same is to be done in order to avoid late fees and penalty:
1. Holding Board Meeting
This is the first compliance that needs to be done after registering of the private limited Company. Meeting among the board members, the first meeting of the Board shall be conducted within 30 days of registering of the Private Limited Company. Thereafter, at least 4 Board meetings to be conducted every year with a gap of 120 days between each meeting of the Board. This means that every Private Limited Company shall have a minimum of 4 board meetings every year and gap must not be more than 120 days between subsequent Board meetings or every quarter one meeting. Records of these Board meetings shall also be created which is known as the minute of the meeting. For this, registers are to be maintained by the Company. It can also be prepared digitally. Here the agenda of the meeting, attendance of members, and the discussion are recorded.
2. Disclosure of Interest by Directors
It is to be noted that every director shall in its first board meeting discloses about the interest in any company, firm or other AOI (including any shareholding interest). The disclosure of interest shall be filed every year, if there is any change in the interest, it is to be filed along with the list of relatives as well. This disclosure of interest shall be filed in MBP 1 form shall be submitted with the Company.
3. Appointment of the Auditor
The auditor for the Company shall be appointed by the Board of Directors within a period of 30 (Thirty) days from the Date of incorporation of the Company. The appointment shall be filed in ADT-1. In case of failure of the Board to appoint the first auditor within the said period of 30 days, the Board shall inform the members of the Company who shall appoint an auditor within a period of 90 days. The appointment can only be done in an extraordinary general meeting.
4. Declaration of Commencement of Business
Declaration of Commencement of Business shall be filed in Form 20A. It is a mandatory compliance and needs to be filed with due time lines as prescribed below. The Form 20A shal be certify by the professional like CA CS or CMA.
Due date for the first time filing of Form 20A
If the Company is incorporated on/or after 2nd November 2018
The form must be filed within 180 days From the date of incorporation
5. Holding Annual General Meeting
The Private Limited Company shall hold a general meeting every year. It is mandatory to conduct it on or before 30th September every year. In case of first AGM shall be held within 9 months of closing of Financial Year. It is to be noted that the AGM shall be conducted within office hour ie., 9 AM to 6PM. The day must not be a public holiday and a clear notice of 21 days shall be given to the members. The Approval of accounts, appointment/re-appointment of auditors, Remuneration of directors are some of the agendas of AGM.
6. Annual ROC filing
RoC Filing is nothing but submission of annual accounts and financials prepared by the Company. Here, list of shareholders, directors, interest, details of other things, board reports and other stuff required to be furnished by the Company with RoC.
Following are the forms which required to be submitted.
Form MGT-7 (Annual Return)
Private Limited Company shall file its Annual Return within a period of 60 days from the date of holding of Annual General Meeting (AGM).
Form AOC-4 (Financial Statements)
Private Limited Company shall file its Balance Sheet together with statement of Profit and Loss Account and Director Report within a period of 30 days from the date of holding of Annual General Meeting (AGM).
7. KYC of Directors of the Company
All directors are required to file a form to do the KYC with the RoC, if you have already submitted the form then one needs to verify the OTP over email and mobile no. otherwise all new director needs to submit this form.
Due Date for filing DIR-3 KYC: On or before 30th April of immediate next Financial Year
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