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Need guidence on company compliance

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Rohit_Acc

Accountant

21 Points Posted on 29 July 2019

Respected Experts!

Recently I am checking about my company profile, It is incorporated on 22nd January 2018. Board resolution etc has been done. All compliance was outsourced to a professional.

However, I was unable to check any annual filling in MCA website, only find out director KYC is updated last year. A secured business loan also availed by the bank on Nov 2018, but no DPT 3 filed till yet.

This company is a bootstrap or startup one. Company is not profitable till yet, probably break even in Mid of 2020.

Company total authorized share capital was 1 lakh only, which is 100% issued. Total 3 shareholders from them 2 are the directors.

What should we do in this current situation?

Is it good to convert to LLP or partnership for less compliance? If yes then what would be the process (as already bank loan availed - the term is 6 years)

Many Many Thanks in Advance!

Replies (1)

Nithin Joseph

CA in Practice

84 Points Posted on 29 July 2019

Since the company is incorporated on Jan'18, the first financial year of the company as per the companies act would be 31st March 2019. Hence the first AGM will be 9 months from the end of the financial year, that is by 31st December 2019. That is the reason no annual filing were seen in MCA. Hence there is no non -compliance. Regarding DPT-3, since the company is having paid up capital of 1 lac, the two forms can be filed for a less fine of 2-3 k

As of now, there are no much of non-compliance for your company. Although LLP has less compliance compared to a company, the fines will be huge if you miss out a deadline.