Annual Compliances

Overview

A startup running as a private limited company has to follow a number of compliances as laid down by various statutes and other regulatory bodies. This includes but is not limited to the periodic filing of tax and other returns, holding the board and other meetings, maintaining statutory books and accounts etc..
Every company registered in India, including private limited, limited company, one person company and section 8 company must file annual returns with ROC every year. It requires conducting of an Annual General Meeting and filing annual accounts with ROC. AGM must be held within 6 months from the end of the financial year i.e. 30th September every year. In case of new companies, first AGM should be held within 18 months from the date of incorporation or 9 months from the close of financial year whichever is earlier. Companies Act 2013 mandates that your financial year should start from 1st April and end on 31st March. Annual return consists of information and documents that include the Balance Sheet of the Company, Profit & Loss Account, Compliance Certificate, Registered Office Address, Register of Member, Shares and Debentures details, Debt details and information about the Management of the Company. The annual return would also disclose the shareholding structure of the Company, changes in Directorship and details of transfers of securities.

Note: Above mentioned Compliances are mandatory yearly compliances for the Small Private Limited Company. Except for the above compliances, there may be event-based compliances for the Small Company. For further details read here. Other Statutory compliances of such private limited companies revolve around periodic filing of tax and other returns, maintenance of books under Income-tax Act and other statutes, etc. as applicable. The compliance requirement differs from case to case basis depending upon the nature of the business, product or service provided, net worth, borrowings, the volume of turnover, etc.


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