Private Company Compliance Checklist

Stay Compliant and Thrive: The Ultimate Private Company Compliance Checklist

The private company, compliance with legal and regulatory requirements is crucial for your success. It not only helps you avoid costly fines and legal disputes but also safeguards your reputation. To ensure you stay on top of your compliance requirements, we have compiled a comprehensive checklist covering all the essential areas.

Director KYC is a critical compliance requirement that every director must complete annually. You need to submit personal details, address, PAN, residence proof like a bank statement, or any utility bill, and Aadhaar number through the DIR-3 KYC Form by 30th September 2023. Failure to do so can result in penalties.

If your private company deals with MSMEs and has any outstanding payments, you must file the MSME Form 1 within 30 days from the end of six months of the financial year, i.e., on or before 30th October and 30th April. This filing will disclose your outstanding payments to Micro or Small Enterprises.

Annual financial statements need to be filed in AOC 4 form, which includes the Balance Sheet, Profit and Loss Account, Director Report, Auditor Report, and other related documents. This filing must be done within 30 days of holding the Annual General Meeting.

You also need to file an annual return in MGT 7 form, including details of the shareholding pattern, securities transfers, changes in directors, or key managerial personnel. This filing must be done within 60 days from the date of the Annual General Meeting.

Every private company needs to appoint an auditor for the financial year and file ADT-1 form within 15 days of the Annual General Meeting to intimate the Registrar of Companies about the appointment.

You must also hold an AGM Annual General Meeting every year within 180 days from the end of the financial year to approve the financial statements, appoint or reappoint directors and auditors, and discuss other related matters.

Additionally, every private company needs to hold at least four board meetings in a year to discuss and decide on various business matters. At least one board meeting should be held in every quarter of the financial year.

If your private company creates, modifies or satisfies any charge on its assets, you need to file the particulars of such charge with the Registrar of Companies in CHG-1 form within 30 days of the creation or modification of the charge.

Lastly, private companies must file a return of deposits to furnish information about deposits and/or outstanding receipts of loan or money other than deposits. The mandatory auditor certificate must be filed with the Registrar of Companies in DPT-3 form by 30th June 2023.

It is important to note that the due dates may vary based on your company’s specific circumstances. Therefore, consulting with professionals is recommended to ensure you comply accurately and timely.

Compliance with legal and regulatory requirements is vital for every private company to avoid fines and legal disputes, maintain a good reputation, and achieve success. Follow our checklist to stay on top of your compliance requirements and consult with experts for accurate guidance.

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