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Pvt. Ltd. Company Compliance

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Overview

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.

Event-based compliances

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.

Avoid penalties

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.

Enhance credibility

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.

Greater visibility

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.

Overall check

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.

Mandatory compliances for a private limited company

Company's name board

As per this compliance, all the private limited company affixes their registered address and name on every legible letter sent. They also must furnish the same outside the premises where they operate.

Company's Letterhead

All the private limited companies must provide essential details like name, registered address, CIN, and many more on all their letterheads, business letters, billheads, boards, papers, etc.

Conducting a board meeting

Every private limited company must conduct a board meeting once in every quarter of a year. That means they have to hold four compulsory board meetings in a year. Further, the meetings should be held after 120 days of a gap.

Auditor's appointment

Every private limited company must appoint an auditor within thirty days of incorporation.

Annual general meeting

All the private limited company must conduct an annual general meeting with a gap of 15 days from the subsequent meeting.

Filing the disclosure of director's interest

Every year, all the directors of a private limited company must MBP-1 form, which discloses their interest in other companies, and DIR-8 form for disclosure of non-qualification.

Annual return filing

All the private limited company must file their annual return on MGT-7.

Maintenance of registers

All the private limited companies must maintain all the records, registers, and minutes' book.

Auditing of company account

Every private limited company has to get its accounts audited by the auditors every financial year.

Financial statement filing

All private limited companies must file their financial statement in AOC-4.

Event-based compliances of a private limited company

These are the compliances that need to ensure during the occurrence of any event. Below are the event-based compliances.

  • Modification in the company's name
  • Change in the registered address
  • Conversion of the company
  • Filing any resolution
  • Allotment of the shares

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