Essential Statutory Compliances for Private Limited Companies in India: A Comprehensive Guide
Introduction
Following the ompanies Act, 2013’s obligatory statutory and legal compliance criteria is essential for founders and owners of Private Limited Companies (PLCs) in India. Maintaining timely compliance saves your company money, increases operational effectiveness, and shows that you value moral behavior and openness.
In this guide, we’ll break down the essential compliances every PLC in India must adhere to, from incorporation to yearly filings and event-based compliances.
1. Post-Incorporation Compliances for PLCs in India
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| Declaration of Commencement of Business | Companies with share capital must submit a declaration to the Registrar of Companies (ROC), confirming receipt of subscription funds. | INC-20A | Within 180 days of incorporation. |
| Statutory Auditor Appointment | The appointment of a statutory auditor is essential for financial certification and regulatory compliance. | ADT-1 | Within 30 days of incorporation. |
| Holding 1st Board Meeting | The first board meeting should discuss the opening of a bank account, incorporation validation, and issuing share certificates. | NA | Within 30 days of incorporation. |
| Company Information Display | All company documents should include the PLC’s full name, CIN, registered office address, and contact details. | NA | Upon incorporation. |
| Labor Law Registration | Register under applicable labor laws and obtain other necessary permits as per your business activities. | NA | As per applicable laws. |
2. Director KYC and Disclosures
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| Director KYC | Directors must file their KYC through DIR-3 KYC with OTP verification. Changes require a new DIR-3 KYC filing or DIR-6 for address updates. | DIR-3 KYC / Web KYC | By 30th September each year. |
| Disclosure of Directors’ Interests | Directors must annually disclose their financial interests and directorships in other entities. | MBP-1 | First board meeting of each year. |
| Non-Disqualification Disclosure | Directors must disclose they’re not disqualified from holding office by submitting DIR-8. | DIR-8 | At the time of appointment/reappointment. |
3. Annual Financial Statements and Filing Requirements
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| Annual Financial Statements | Companies must submit their balance sheet, profit and loss account, and audit report. Companies meeting specific criteria file in XBRL format. | AOC-4 / AOC-4 XBRL | Within 30 days of AGM. |
| Annual Return Filing | Includes details about company operations, registered office, shareholding, board meetings, and compliance. | MGT-7 | Within 60 days of AGM. |
4. Board Meetings and Resolution Compliance
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| Board Meetings | Organize at least four board meetings annually, with no more than 120 days between them. | NA | Quarterly. |
| Notice of AGM | Issue notice 21 days before the AGM to inform shareholders. | NA | 21 clear days before AGM. |
| Circulation of Financial Statements | Distribute financial statements to shareholders for review. | NA | 21 clear days before AGM. |
| Filing Special Resolutions | File significant resolutions like mergers or capital restructuring with MGT-14. | MGT-14 | Within 30 days of AGM. |
5. Income Tax Compliance
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| Advance Tax Payments | Quarterly payments based on estimated tax liability. | NA | Quarterly: By September 30th. |
| Income Tax Returns | Annual tax filing under ITR-6. | ITR-6 | July 31st of the following fiscal year. |
| Tax Audit | A tax audit is required for businesses with annual revenue of more than Rs. 10 crore. | Form 3CA/3CD | September 30th of the assessment year. |
| GST Returns | Required monthly or quarterly filings based on turnover limits. | GSTR-1, GSTR-3B | Monthly/quarterly, as applicable. |
| TDS and TCS Returns | TDS and TCS returns must be filed if tax is deducted or collected during the fiscal year. | Form 24Q, 26Q, 27EQ | The fifteenth day of the month after the quarter’s end. |
6. Additional Mandatory Compliance
| Compliance | Description | Forms | Deadline |
|---|---|---|---|
| MSME Vendor Payments | MSME vendors must be paid within forty-five days. Failure results in penalties. | MSME-1 | Semi-annual: April 30th, October 31st. |
| Return of Deposits | Businesses that accept deposits from the general public must report DPT-3 annually. | DPT-3 | June 30th each year. |
| Active Company Tagging | Tagging for businesses that were founded prior to December 31, 2017. | INC-22A | One-time by April 25, 2019. |
| Significant Beneficial Owner Disclosure | SBOs must file forms detailing beneficial ownership. | BEN-1 & BEN-2 | Within 30 days after SBO declaration. |
7. Event-Based Compliance:
- 7.1 Changes in Authorized or Paid-Up Capital
Reflects changes in a company’s financial structure.
Forms: SH-7 (increase), SH-6 (reduction), MGT-14. - 7.2 Share Allotment and Transfers
Allot new shares with PAS-3 within 30 days; transfer existing shares using SH-4. - 7.3 Other Key Events
Loans to other companies, director appointments/resignations, changes in bank account signatories, and statutory auditor appointments/resignations also require timely reporting to the ROC.
Forms: Various, including ADT-1 for auditor appointments and DIR-12 for director changes.
8. Consequences of Non-Compliance
Failing to adhere to these statutory requirements can result in significant penalties for companies and responsible members. Monetary fines, additional charges for delayed filings, and even legal action can be imposed on companies that neglect their compliance obligations. Long-term success and reputation management depend on prompt and consistent compliance.
9. Conclusion
For PLCs in India, staying on top of compliance is not only a legal requirement but also a strategic move for operational success. With this guide, you can navigate the core statutory responsibilities effectively. However, considering the complex nature of regulatory compliance, engaging a professional expert can help ensure your business meets every requirement with accuracy and timeliness.
10. Stay Updated with Plutus:
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