#AnnualCompliance

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ROC Annual Compliance for Private Limited Companies in India: Complete Guide

Running a private limited company in India comes with many benefits, but it also involves various responsibilities, particularly concerning annual compliance with the Registrar of Companies (ROC). Every private limited company, regardless of size or operation, is required to follow the set rules and regulations under the Companies Act, 2013. Compliance not only ensures that the company is operating legally but also helps maintain a good reputation with stakeholders and avoid penalties.

In this article, we'll walk you through the key ROC annual compliance requirements for private limited companies in India, explain why compliance is crucial, and outline the penalties for non-compliance.

What is ROC Compliance?

ROC compliance refers to the requirement for companies to submit specific documents and filings annually to the Registrar of Companies. The ROC oversees companies under the Ministry of Corporate Affairs (MCA) in India. ROC filings help ensure that companies are transparent in their operations and are adhering to legal standards.

All private limited companies must file these documents to avoid penalties, maintain legal standing, and ensure that their financial and operational data is up to date with government records.

Why is ROC Compliance Important?

Legal Requirement: Annual ROC compliance is mandatory under the Companies Act, 2013. Non-compliance can result in hefty penalties, legal action, or even the company's name being struck off from the ROC register.

Building Trust: Regular compliance builds trust with investors, creditors, and other stakeholders. It shows that the company is operating lawfully and transparently.

Financial Health: Compliance filings often include the company’s financial details, which reflect its overall financial health. Keeping these up-to-date helps both management and stakeholders assess the company’s performance.

Avoid Penalties: Non-compliance can lead to penalties that accumulate daily, causing significant financial strain on the company.

Key ROC Annual Compliance Requirements for Private Limited Companies

Let’s break down the critical compliance tasks that a private limited company must complete each year:

1. Annual General Meeting (AGM)

Every private limited company must hold its Annual General Meeting within six months from the end of the financial year. The financial year in India typically ends on March 31st, so the AGM must be held by September 30th of the same year.

In the AGM, the company's financial statements are presented, and shareholders discuss the company’s progress and future plans.

Important Filing:

Form MGT-7 (Annual Return): This form contains details of the company's shareholders, directors, and any changes during the year. It must be filed within 60 days of the AGM.

2. Filing of Financial Statements

Financial transparency is a key part of ROC compliance. Companies must submit their financial statements, including the balance sheet, profit and loss account, and the auditor's report, to the ROC. These documents must be signed by at least two directors and submitted annually.

Important Filing:

Form AOC-4: This form is used to submit the company’s audited financial statements. It must be filed within 30 days of the AGM.

3. Income Tax Return

Alongside ROC compliance, a company must also file its income tax return annually. This return must be submitted to the Income Tax Department by September 30th (or a later date if extended). The tax return includes details of the company’s profits, deductions, and taxes paid during the year.

Important Filing:

ITR-6: Private limited companies must use this form to file their income tax return electronically.

4. DIR-3 KYC for Directors

Every director of the company must submit their KYC (Know Your Customer) details to the ROC annually. This ensures that the ROC has up-to-date contact details and personal information for all directors.

Important Filing:

Form DIR-3 KYC: This form must be filed by all directors each year, usually before the end of September.

5. Form MBP-1 (Disclosure of Interest by Directors)

Directors must disclose any interest they hold in other entities or companies. This is done at the first Board Meeting of the financial year. The disclosure is necessary to ensure that there are no conflicts of interest.

6. Form ADT-1 (Appointment of Auditors)

Every private limited company must appoint an auditor for five years, and this appointment must be notified to the ROC by filing Form ADT-1. This filing should be made within 15 days of the AGM in which the auditor is appointed.

7. Form DPT-3 (Return of Deposits)

Private limited companies that have taken any loans or deposits must file Form DPT-3 annually. This form details the deposits or loans taken by the company.

8. Form MSME-1

If your company deals with Micro, Small, and Medium Enterprises (MSME), it is required to file Form MSME-1 twice a year. This form reports any payments to MSME suppliers that have been delayed beyond 45 days from the due date.

9. Form BEN-2 (Beneficial Ownership)

If the company has any individual shareholders who hold more than 25% of shares or voting rights, they are considered "significant beneficial owners." The company must report such ownership by filing Form BEN-2.

Penalties for Non-Compliance

Failure to meet ROC annual compliance requirements can result in significant penalties. Some common penalties include:

Late Filing Fees: The ROC imposes additional fees for late filing of forms, which increase with the length of the delay.

Disqualification of Directors: If the company fails to file its annual returns or financial statements for three consecutive years, its directors may be disqualified from holding directorships in any company for five years.

Striking Off the Company: In extreme cases of prolonged non-compliance, the ROC has the authority to strike the company’s name off the official register, effectively shutting down the company.

Prosecution: Non-compliance may also lead to prosecution under the Companies Act, which could result in fines and imprisonment for directors.

Conclusion

Annual ROC compliance is not just a legal requirement; it's a crucial part of running a successful and transparent private limited company in India. By staying compliant, companies can avoid penalties, maintain credibility, and ensure smooth operations. The process involves filing several forms and reports, including MGT-7, AOC-4, DIR-3 KYC, and more, all within specific deadlines.

While the process may seem complex, companies can seek professional help to manage their compliance needs effectively and ensure timely filings. Compliance isn't just about avoiding penalties; it's about building trust and ensuring the long-term health of the business.

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Annual Compliance for Private Limited Company

As per Companies Act 2013, Every company is required to file their financial statement such as Balance Sheet, Profit and Loss account etc with Audit Report, Director Report with in certain time limit with the MCA

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Ensure Compliance with ROC Annual

Don't let your business be left behind! With ROC Annual Compliance, you can rest assured that your business complies with all government regulations. Protect yourself and your company by signing up for ROC Annual Compliance today.

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Attention Taxpayers!!

The last date for the filling Income Tax Returns & Audit is on 30th Sep 2019.

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#workplace #annualcompliance #training #training #macys #lovethisplace (at North East Mall) https://www.instagram.com/p/Bx3cgUSH9dp/?igshid=rnwz6mzl5ti4

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Mandatory Filing of Details of outstandings with ROC to be shared in DPT-3 with reference to Companies (Acceptance of Deposits) Amendment Rules, 2019 notified by MCA on 22.01.2019.

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Get all Types of Annual Compliances for Startup Company and Established Firm !!

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GST Registration Consultant in Delhi NCR

 We help individuals to file their income tax returns in an easy, conveniently & hassle-free.

Write to us at info@vedkee.in and reach us at 9810238067 for a quick response from our experienced CA/CS.

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LLP Annual Compliance

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All about a Nidhi Company and functions

About a Nidhi Company:

The fund company promotes the art of saving and utilizing funds within its member community. The fund company does not require a license from the Reserve Bank of India. Companies doing fund business are also known as Nidhi, Permanent Fund, Profit Fund, Mutual Benefit Fund (Mutual Benefit Capital), and Mutual Benefit Company. The Nidhi Company is recognized under Section 406 of the Companies Act, 2013. It is a business structure, which falls under 20A of the Companies Act, 1956, and is governed by the Ministry of Municipal Affairs (MCA).

The fund company is formed only to enhance the habit of saving for mutual benefit among its member. The main goal of the fund for the fund company is the contribution of the members. The registration of a fund company is much simpler and less complicated.

Fund structure of the company

It is a type of public limited company

Only members are allowed to borrow and borrow money.

Legislation through the Ministry of Corporate (Organized) Affairs

It does not require any RBI approval. But for this, it is right to ask questions related to deposit acceptance.

5 lakhs minimum capital is required to start a fund company

Established in 2014, governed under the Funding Rules.

The fund company must have at least 200 members to join.

The fund should be at least Rs.10 / - for the members of the company which is approved (approved) with equity (fairness) shares.

Also Read- Annual Compliance

Functions of the fund company

Funding (grant), the rules of capitalization in a fund company are done through the contribution of its constituted members.

Later that money is used to give loans to its members according to their needs at very reasonable rates.

Funds Company funds or deposits are limited in comparison with other banks because they are only able to operate as they would operate in a limited area with a specific fund base.

Some of the following tasks are done such as providing loans to its members, making deposits from its members; the loans are focused on the extent of funds raised by the members.

The objective of the fund company is to develop and support small-scale companies and to tell them about the habit of saving and working for the benefit of their members by giving loans, obtaining deposits, etc.

The primary idea behind the concept of a fund company is to inculcate the habit of saving among its members who borrow and lend to other members for their mutual benefit. Simply, a fund company in India operates on three principles, namely:

Encouraging the habit of saving and cutting costs.

Creation of Mutual Benefit Deposit.

Lending deposits to members as required.

Some advantages and disadvantages of the fund company

A Nidhi company having a Company Registration in India represents a Mutual Benefit also known as Mutual Benefit Fund, Permanent Fund, and Benefit Fund. The objective of the fund company is to develop the habit of using funds carefully and saving wisely among its members. The fund encourages its members to save more money and make good use of available funds. The Nidhi Company is a part of the Non-Banking Financial Company (N B F C) which is recognized under Section 406 of the Companies Act 2013 and governed by the Nidhi Rule 2014.

Benefits of starting a fund company in India:

The fund company has a very low minimum paid-up capital requirement as compared to other non-banking financial companies. All you need is 5, 00,000 / - and 7 members to get started, this is a simple one for everyone. You do not need to wait for an RBI license. It does not require any approval or license to start a loan Company in India. The registration process is easy and can be done in fifteen to twenty days.

Reliable 3 people (from almost the same family) will be selected as directors, their PAN, photo, ID, address proof, and any authorized proof of registered office is required for you to register.

Another benefit of the fund company is the high-interest rate of 7.5%. And the fund company can earn a maximum of 20% interest on the loan to reduce the balance.

Loss/limit of the fund company

Nidhi (money) company can deposit and lend only among its shareholder-members. As a fund company, you cannot accept direct deposits from the public. One year after commencement, the fund company should ensure a minimum of 200 members and net ownership of 10,00,000 as per Section 406 of the Companies Act 2013 and Fund Rules 2014.

Businesses such as chit funds, hire purchase finance, lease finance and insurance will not include any fund or cannot buy any corporate (incorporated) shares.

The fund company cannot issue any shares, debentures (manuals), or any debt instrument (instrument) to any person or corporate (incorporated into a society or institution).

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[complianceship]

All Companies (other than Govt. Companies) are required to file a one-time return (DPT-3) of outstanding receipt of money or loan received by a Company from April 1, 2014, to January 22, 2019, and which was not considered as “deposit”  https://complianceship.com/secretarial/dpt-3-am-i-required-to-file-it/

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GST Registration Consultant  in Gurgaon

File Income-tax return with vedkee.in, E-filing is easy, secure, and fast. Write to us at info@vedkee.in and reach us at 9810238067 for a quick response from our experienced CA/CS. #ITRfiling #vedkeeassociates #rocannualfiling #companycompliances #annualcompliances #gurugram #india #delhincr #NewGurgaon