Annual & General Compliances For Private Limited Companies under Companies Act, 2013

Annual & General Compliances For Private Limited Companies under Companies Act, 2013

Annual compliance describes the goal that organizations aspire to achieve in their efforts to ensure that they are aware of and take steps to comply with relevant laws, policies, and regulations. This article is about the ANNUAL COMPLIANCES which is mandatory required to be taken care by any organization or private company.

A business running as private limited or public limited company or One person company registered under The Companies Act , 2013, need to comply various laws. Compliance are done and reported by filing e-forms available on MCA website.

To understand the Exact procedure for the same, this article will help you as a quick checklist for the the compliance, Refer the below rules for that,

1. BOARD MEETING: SEC 173

• 1st Board Meeting Shall Be Conducted Within 30 Days From The Date Of Incorporation Of Company.
• Minimum 4 Board Meetings To Be Held Every Year With Not More Than 120 Days Gap Between 2 Consecutive Board Meetings.
• In Case Of Small And One Person Company, It Is Sufficient To Conduct Only 2 Board Meetings.

2. DISCLOSURE OF INTEREST BY DIRECTORS: SECTION 184

• Every Director Of The Company Shall Disclose The Concern Or Interest In Any Company Or Body Corporate, Firms, Or Other Association Of Individual In Form MBP 1.
• Such Disclosure Of His Concern Or Interest Shall Be Made By The Directors On Occurrence Of 3 Events.
  • At The 1st Board Meeting Of The Board Of Directors In Which He Participates As A Director Of The Company
  • At The 1st Board Meeting Of Every Financial Year.
  • Whenever There Is Any Change In The Disclosures Already Made, Then At The First Board Meeting Held After Such Change.

3. DPT 3:

• Every Company Having Any Outstanding Loan/Amount As On 31st March Of Every Financial Year Has To Furnish Details And Bifurcation Of Such Outstanding Amount  By 30th June Irrespective Of The Fact Whether Such Amount Whether Such Amount Is Falling Under The Definition Of Deposit Or Not.

4. DIR-3 KYC:

• Any Person Who Has Been Allotted “Director Identification Number (DIN/DPIN)” Before 31.03.2021 Needs To Complete KYC Either By Filing DIR-3 KYC FORM (If 1st Time) Or By DIR 3 KYC WEB (For Subsequent Years) Before 30th September For F.Y. 2021-2022.

5. MSME-1:

• Every Company Having Outstanding Payments Dues To Micro And Small Enterprises And In Case The Payment Of The Same Is Pending Beyond 45 Days, Then The Company Has To Furnish Details As Per The Following Timeline :
  • For April To September By 31st October.
  • For October to March By 30th April.

6. ANNUAL GENERAL MEETING: SECTION 96

• Every Company Must Conduct Its 1st Annual General Meeting Within 9 Months That Is Till 31st Dec From The Date Of Closing Of The 1st Financial Year. However, Subsequent Annual General Meeting Shall Be Conducted Within 6 Months That Is Till 30th Sep From The Closure Of Financial Year.
• Annual General Meeting Shall Be Called Between Business Hours, That Is, Between 9 A.M. And 6 P.M On Any Day, Except National Holiday.

7. ANNUAL FILING:

• Annual Return Includes Filing Of 2 Forms:
  • Filing Of Financial Statements (FORM AOC 4)
  • Filing Of Annual Return (FORM MGT 7)
• AOC 4 Is To Be Filed Within 30 Days From The Date On Which Annual General Meeting Is Held Or Where No Annual General Meeting Is Held Than Within 30 Days From The Date On Which The Annual Return Meeting Should Have Been Held.
• MGT 7 Is To Be Filed Within 60 Days From The Date On Which Annual General Meeting Is Held Or Where No Annual General Meeting Is Held Than Within 60 Days From The Date On Which The Annual Return Meeting Should Have Been Held.

P.S Compliances Are Not Only Following The ‘Rule ’, Or ‘Ticking A Box’ But It Is The Right & Professional Way Of Working, Eminent Part Of The Business, Investor Confidence, Transparent And Open Culture.