Introduction 

The Private Limited Company is obliged to file certain annual compliance after the end of each financial year. Annual compliances for Private Limited Companies are less as compared to other companies such as Public Limited Companies, and One Person Companies. In this blog, we will talk about annual compliances such as annual returns, ITR, financial statements etc. 

What is the Company annual filing? 

The term ‘Company Annual Filings’ refers to the filing of audited annual financial accounts, directors’ reports and an annual return of the company with the Registrar of Companies.  Every registered company, whether it is engaged in business or not, must submit these annual filings. 

Benefits of company annual filing 

  • Avoid legal consequences such as additional costs, fines, and detention.

  • In the eyes of law, it will serve as confirmation or proof of your existence and timely filing of the Private Limited Company compliances.

  • Companies incorporate management discussion in their board report, which serves as a gateway to the public with important information about the Private Limited Company.

  • As these reports are prepared in consultation with government experts and verified by certified professionals, they can give the public more assurance about the Company and create a commendable impression in the eyes of business associates.

Private Limited Company annual filing to MCA 

Appointment of auditor: 

The auditor is appointed through the filing Form ADT-1. This form is filed to appoint an auditor for preparing the financial statements, annual returns and profit and loss statement, director report etc. The 1st auditor is appointed within thirty days of the incorporation of the Private Limited Company in India OR according to section 139 of the Companies Act, 2013. He is appointed by the Board of the company. The auditor holds the office for a maximum period of five or ten consecutive years. In the E-Form ADT-1, the Private Limited Company should add the details of the auditor such as PAN number of the auditor, CA membership number, address, email-id, the period for which the appointment is made, date of appointment along with the date of AGM etc. The Form ADT-1 must be filed by a company within 15 days from the date of the end of the AGM every year annually. Failure to file Form ADT-1 depends on the days of delay like if up to 30 days then the fine is 2 times of normal fees or for more than 30 days and for less than 60 days then the fine is 4 times of normal fees and so on. 

Filing of financial statement: 

The financial statement of the company is filed through Form AOC-4. It includes four main statements such as the balance sheets, cash flow statements, income statements, and statements of shareholders’ equity. The company should attach all the necessary documents with duly signed by the concerned authority. The Form AOC- 4 should be filed by the company within 30 days from the date of the end of the AGM every year. The company or individual person can download Form AOC-4 from the annual E-filing category of the MCA portal. This form is mandatory compliance for Private Limited Companies. A company has to pay Rs. 100 per day for non-filing of Form AOC-4 annually.

Company Annual Filing

Filing of annual return: 

The annual return of the company is filed through Form MGT-7. It includes details like registered office address, CIN, PAN, principal business activity, particulars of the subsidiary, holding and associate companies etc. The company should attach all the necessary documents with duly signed by the concerned authority. The Form MGT-7 should be filed by the company within 60 days from the date of the end of the AGM every year. The company or individual person can download Form MGT-7 from the annual E-filing category of the MCA portal. This form is mandatory compliance for Private Limited Companies. A company has to pay Rs. 100 per day for non-filing of Form MGT-7 annually. 

Filing income tax return: 

According to the Income Tax Act, 1960 all companies are required to file ITR-6. It must be filed on or before 30th October every year. It should be noted that the ITR-6 deadline is constantly shifting and is announced by the authorities each year. 

Bottom line 

In the absence of professional guidance, Private Limited Companies frequently experience compliance stress and must incur penalties. Therefore, you must comply with the filing of the annual compliance for Private Limited Company as per the due date announcement by the authorities. Filing annual compliance on time, helps you build goodwill for your company.

Author Bio

Qualification: Graduate
Location: Ahmedabad, Gujarat, India
Member Since: 04 Oct 2017 | Total Posts: 114
Ishita is a young woman entrepreneur and currently the Operations Director at ebizfiling India Private Limited. In her entire career so far, she has led a team of 50+ professionals like CA, CS, MBAs and retired bankers. Apart from her individual experience on almost every facet of Indian Statutory View Full Profile

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