The companies law, 2013, states that the registrar of companies (ROC) is the sole office liable for administering the companies. It will make sure that all the compliances and statutory requirements are furnished as per the MCA. When it comes to a private limited company, it becomes crucial to follow all the online compliances of Private Limited Company. Further, all the compliance should be ensured as per the company's law.
So, whether it is incorporation, reporting, auditing, or maintenance of the registers, the companies should fulfill all the requirements as per the MCA. On the other hand, all the private limited companies are governed under the laws of MCA. Thus, they are bound to follow all the online compliances of a private limited company within the due date. In any case, if a private limited company fails to follow the compliances, then it would lead to the imposing of fines and penalties.
The online private limited company compliances segments into two types. It includes:
Mandatory annual compliances
These are the annual compliances that are mandatory for all the private limited companies. Further, as the name suggests, these compliances require annual filing.
These are the compliances that are based on the occurrence of certain events. It may be an event or a transaction.
Why should Private limited ensure all the compliances?
The primary reason to ensure all the compliances in a private limited company is to establish shareholder's trust in you. Further, ensuring all the compliances also helps a private limited company to gain customer's trust. So, to develop the trust of shareholders, a private limited company must ensure all its compliances.
On the other hand, the compliances also help the private limited companies to ensure regular returns on all the investments made. It helps companies to keep a record of the overall development of the company by tracking the functions and operation. Further, maintaining all the registers and records offers a competitive advantage over all the competitions. All the compliances also act as an asset for a private limited company. It helps you raise funds, get financial help, bring clarity, and most essentially eliminate penalties.
Thus, all the private limited companies must follow the compliances, as per the MCA.
Perks of online private limited company compliances
When a private limited company ensures all the compliances and requirements, it is known to be a compliant company. So, here are some benefits of ensuring all the online compliances.
One of the biggest advantages of ensuring all the compliances is to avoid all the penalties. It is because the non-compliance issue will impose fines on private limited companies.
If a private limited company meets all its compliances, then it will get higher credits from the concerned departments. Thus, it will help the companies to get more financial help.
Ensuring all the compliances helps all the private limited companies to get greater visibility on its functions and operations.
Promotes brand trust
A compliant company always attracts shareholders and consumers. Thus, it helps in promoting the brand's trust.
If a private limited company remains compliant, it can have an overall check on the business. It also helps them measure their efficiency.
Beat the competition
Being compliant helps you get an upper-edge over your competitions.