Private Limited Company

Private Limited Company

Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated. Company law provides legal compliance that are required to be followed by every company like reporting of financial results, reporting of changes in management, maintenance of statuary registers, auditing of accounts etc. All the benefits of a private limited company, such as the ability to raise capital easily and accommodate shareholders, come at the cost of increased compliance. While the majority of small businesses do not fulfil their compliance requirements in their opening years, they end up paying heavy penalties (up to Rs. 1 lakh a year) for failing to do so. In the worst scenario, such companies and their directors are even blacklisted for a short period of time.

Compliance Requirement

1) Appointment of Auditor

2) Statutory Audit of Accounts

3) Filling of Annual return

4) Filling of Financial Statement

5) Holding Annual general Meeting

6) Preparation of Director Report

7) Board Meetings

8) Annual General Meeting (AGM)

9) Annual Filing of Forms

10) Yearly Forms by Directors

11) Maintenance of Statutory Register & Minutes Book

Event Based Compliances

1) Receipt of share application money

2) Allotment of shares

3) Transfer of shares

4) Appointment/Resignation of directors

5) Appointment of Managing Director/ Whole Time Director

6) Executing agreement with related parties

7) Change in the Bank signatories

8) Change in the statutory auditors