Once your business is incorporated as Private Limited Company, the company ought to follow various compliances laid down to the government of India. Your company may mint millions or nothing at all but to run your day to day operations, you have to follow the corporate laws that are set for the Private limited company.
Here is a list of compliances, a private limited company has to follow
1. Auditor
Within a month after the incorporation of the company the company has to appoint its first auditor. The auditor will be appointed for 5 years.
2. Statutory audits of the accounts
A compulsory audit of the company’s financial reports has to be done by a Chartered accountant at the end of every financial year. And the auditor is required to handover these reports that will be submitted to the registrar.
3. AGM
Annual general meetings are to be done every year. An AGM has to be held within 6 month after the end of a financial year.
4. Annual returns
Within 60 days after the AGM, the company has to file Annual returns.
5. Financial statements
P&L statements, balance sheets, and director report is supposed to be filed within 60 days after the AGM.
6. Directors’ report
Directors’ report will be in compliance to the rules mentioned in section 134.
7. Board meetings
First board meeting is to be conducted within 30 days after the incorporation of the company. Minimum of 4 board meetings are to be held every year by any company. This number boils down to minimum of 2 board meetings for small companies. Atleast 2 or 1/3 number of the total directors of the company must be present for these meetings.
8. Income tax
It is important to pay advance taxes. Tax audit is compulsory if your turnover has been more Rs 1 crore in the previous financial year.
9. Statutory records
Every private limited company has to maintain record of the proceedings and operations of the company in the form of registers. So there will be Register of shares, Register of Members, Register of Directors etc. and also the records of the board meetings, minutes of the meetings etc.
10. Other compliances
The company has to do annual filings in case of
- Appointing or changing – statutory auditors, Managing or whole time Director, payment of remuneration, company’s authorised or paid up capital, change in the signatories of the company’s bank accounts etc.
- Giving loans to the directors or other companies.
- Allotment of new shares or transfer of shares
- Opening new bank accounts
If any company fails to follow these rules or violates these rules then the company authorities will be fined or punished or both as per the corporate laws. If there is delay in complying any of the above, the company will be levied with penalty fees.
Need more information on compliances of private limited company then make sure to mail caswetamakwana@gmail.com
Author Bio
PLEASE GIVE PPT OF ALL TAX COMPLIANCES IN THE COMPANY.