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After the formation of a Private Limited Company, there are several legal compliances that need to be followed to ensure the company’s compliance with applicable laws and regulations. These compliances are essential to maintain the company’s legal status, protect the interests of shareholders, and avoid penalties or legal consequences. Here are the key legal compliances applicable to a Private Limited Company:

1. Annual Compliances:

a. Annual General Meeting (AGM): The company must hold an AGM within six months from the end of each financial year. During the AGM, financial statements, including the balance sheet, profit and loss account, and auditor’s report, are presented and approved by the shareholders.

b. Financial Statements: The company must prepare and file financial statements, including the balance sheet, profit and loss account, and cash flow statement, within 30 days from the AGM. These statements must comply with the applicable accounting standards.

Private Limited Company

c. Annual Return: The company is required to file an annual return with the Registrar of Companies (RoC) within 60 days from the AGM. The annual return provides information about the company’s shareholders, directors, registered office, and other statutory details.

2. Board Meetings and Resolutions:

a. Board Meetings: The Board of Directors must hold meetings at regular intervals, with a minimum of four meetings in a calendar year. The meetings should comply with the notice period, quorum requirements, and recording of minutes as per the Companies Act, 2013.

b. Resolutions: Important decisions taken by the company’s Board of Directors must be passed through board resolutions and maintained in the minutes book. Examples of such decisions include appointment/removal of directors, alteration of share capital, loans to directors, etc.

3. Statutory Registers and Records:

a. Register of Members: The company must maintain a register of its members, including details such as names, addresses, shareholdings, and changes in share ownership.

b. Register of Directors and Key Managerial Personnel: The company must maintain a register containing the particulars of its directors and key managerial personnel.

c. Minutes Book: The company is required to maintain a minutes book to record the proceedings of general meetings, board meetings, and committee meetings.

4. Compliance with Income Tax Laws:

a. Income Tax Returns: The company must file its income tax return (ITR) annually with the Income Tax Department. The due date for filing the ITR is generally September 30th of the assessment year.

b. TDS Compliance: If the company is liable to deduct tax at source (TDS) on payments made to employees, vendors, or contractors, it must comply with TDS provisions. This includes deducting TDS, issuing TDS certificates, and filing TDS returns within the specified timelines.

5. Compliance with GST (Goods and Services Tax):

a. GST Registration: If the company’s turnover exceeds the threshold limit prescribed under the GST laws, it must register for GST and obtain a GST identification number (GSTIN).

b. GST Returns: The company is required to file periodic GST returns, including GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return).

6. Compliance with Other Laws:

Depending on the nature of the business and industry, the company may have to comply with various other laws and regulations. Some common examples include compliance with labour laws, environmental regulations, intellectual property laws, data protection laws, etc.

7. Compliance with Companies Act, 2013:

The Private Limited Company must comply with various provisions of the Companies Act, 2013, such as maintaining proper books of accounts, issuing share certificates, conducting board meetings, appointing auditors, filing required forms with the RoC, and more.

It’s important to note that the specific legal compliances may vary based on factors such as the nature of the business, number of employees, turnover, and location of operations. It is advisable to consult with a legal professional or company secretary to ensure comprehensive compliance with all applicable laws and regulations.

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Author is A Practicing Chartered Accountant with over 5 years of rich experience in Company Law, Audits, Accounts & taxation.  She is keen in streamlining business accounts of the Company and provide Startup consultancy. She can be connected on [email protected]

Author Bio

A Practicing Chartered Accountant with over 5 years of rich experience in Company Law, Audits, Accounts and taxation. She is a writer at her own blog https://insights.buddingbusiness.com/. She is keen in streamlining business accounts of the Company and provide Audit and compliance advisory services View Full Profile

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