Article on Compliances by the Private Company after Incorporation covers the Timeline for First Board Meeting, Appointment of Auditor, Opening Current Account, Form INC-20A, Declaration of Commencement of Business, Issue Share Certificate, Holding of Board Meetings, Maintenance of Statutory Registers and Records, Disclosure of Interest by all the directors of the Company, Statutory Audit of Accounts, Preparation of Directors’ Report, Holding Annual General Meeting, Filing of Annual Return (Form MGT-7), Filing of Financial Statements (Form AOC-4), Minutes, Form DIR-3 KYC, Form INC-22A, Form DPT-3, E –Form MSME (Half Yearly) and Other Event Based Compliances.

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S. No Description of Compliances Timeline
1 First Board Meeting Mandatory- within 30 days

Section 173(1), of The Companies Act 2013 deals with conduct of Board meeting of the companies.

As per the provisions of the section, a company shall within 30 days from the date of its incorporation conduct first board meeting of the company. Directors can attend the meeting either in person or through video conferencing.

2 Appointment of Auditor Mandatory- within 30 days in case of First Auditors

The first Auditor will be appointed within one month from the date of incorporation of the Company.

Auditor will be appointed for the 5 (Five) years and form ADT-1 will be filed within 15 days from the date of appointment for 5-year appointment.

3 Opening Current Account Mandatory – within 180 Days

Once a Private Limited Company is incorporated, the first and foremost step is opening of Bank Account in the name of the Company. As company is an artificial person hence all company related transactions shall route from its Current account.

4 Form INC-20A, Declaration of Commencement of Business Mandatory – within 180 Days

As a post incorporation requirements of a company, every company is required to file a declaration of commencement of business within 180 days from the date of incorporation of the company in accordance with the Companies (Amendment) Ordinance 2018, Section 10A, in form INC-20A.

5 Issue Share Certificate Mandatory – within 60 Days

The company shall issue share certificates to the shareholders of the company within 60 days from the date of incorporation of the company and pay stamp duty within 30 days from the date of allotment of shares as per the relevant stamp act applicable on the state.

6 Holding of Board Meetings Minimum Four Board Meeting in Every Calendar Year

Minimum Four Board Meetings shall be held in a calendar year (one meeting in every 3 months).

In case of a Private Limited Company which is classified as a “Small Company”, at least two Board Meetings shall be held in a calendar year (one meeting in every half year)

7 Maintenance of Statutory Registers and Records Event Based

A Private Limited Company has to maintain various statutory registers and records as required by the Company law such as Register of shares, Register of Members, Register of Directors etc. Besides, Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc. are also required to be preserved by the Company.

Such records are to be kept at the registered office of the company and shall be open for inspection to its members during business hours. Also, the books of account of every company relating to a period of atleast eight financial years should be preserved and kept in good order.

8 Disclosure of Interest by all the directors of the Company Event based and Annually

At First board meeting, every director is under obligation to disclose his interest in any company/firm/body corporate/association of individuals as outlined in section 184(1) of the Companies Act 2013.

Any changes in the disclosures shall be intimated by the director to board of directors in its first meeting held during each financial year.

An independent director, if any, must give a declaration that he meets the criteria of independence during the first board meeting as a director.

9 Statutory Audit of Accounts Annually

Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.

10 Preparation of Directors’ Report Annually

Directors’ Report will be prepared with a mention of all the information required under Section 134.

11 Holding Annual General Meeting Annually

It is mandatory for every Private Limited Company to hold an AGM in every Calendar Year. Companies are required to hold their Fist AGM within a period of Nine months, from the date of closing of the Financial Year.

12 Filing of Annual Return (Form MGT-7) Annually

Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.

13 Filing of Financial Statements (Form AOC-4) Annually

Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.

14 Minutes Event Based

As per section 118 of companies act, 2013 required Maintained Board Minutes, annual General Meeting Minutes and other .

15 Form DIR-3 KYC Annually

DIR-3 KYC is required to be filed for all the DIN whose DIN is obtained before 31/03/2020.

In case if yet not filed then Penalty is Rs. 5000/- for the same.

(If not filed then DIN Status will be DIN-Deactivated)

WEB DIR-3 KYC on second time (Next Year) required to File Web DIR-3 KYC (if no change last DIR-3 KYC.

16 Form INC-22A Annually

Form INC-22A was required to be filed (Applicable to all companies registered before 31st December 2017). If yet on filed, then penalty is Rs. 10,000/-

(If not filed then Company Status will be Active-Non-Compliant)

17 Form DPT-3 Annually

All the Company having any outstanding loan/amount as on 31st March of every financial year has to furnish details and bifurcation of such outstanding amount irrespective of the fact whether such amount is falling under the definition of deposit or not by 30th June

18 E –Form MSME (Half Yearly) 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

19 Other Event Based Compliances Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Instances of such events are:

1. Change in Authorised or Paid up Capital of the Company.

2. Allotment of new shares or transfer of shares

3. Giving Loans to other Companies.

4. Giving Loans to Directors

5. Appointment of Managing or whole time Director and payment of remuneration.

6. Loans to Directors

7. Opening or closing of bank accounts or change in signatories of Bank account.

8. Appointment or change of the Statutory Auditors of the Company.

Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.

Author Bio

Qualification: CS
Company: AYUSH K JAIN & ASSOCIATES
Location: Jaipur, Rajasthan, India
Member Since: 22 Mar 2019 | Total Posts: 8
I am an Associated Member of the Institute of Company Secretaries of India and Bachelor in Law from Rajasthan University having more than three years of experience in managing the Secretarial and legal Compliances of Private and Public Companies. I am a prominent professional with expertise in Mer View Full Profile

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