Annual compliances for companies and LLPs in India are critical to maintain their legal status, adhere to regulatory requirements, and avoid penalties. These compliances ensure transparency and accountability to stakeholders, including shareholders, directors, creditors, and regulatory authorities like the Ministry of Corporate Affairs (MCA). Here’s a comprehensive guide on the annual compliances for both companies and LLPs:
Annual Compliances for Companies
1. Annual Return (Form MGT-7)
- Filing Deadline: Within 60 days from the date of Annual General Meeting (AGM).
- Details Required: Information about the company’s shareholders, directors, management, and corporate governance practices.
- Signatory: Director or Company Secretary.
2. Financial Statements (Form AOC-4)
- Filing Deadline: Within 30 days from the date of AGM.
- Details Required: Balance sheet, profit and loss account, director’s report, auditor’s report, and other financial documents.
- Signatory: Director or Company Secretary.
3. Board Meetings and Minutes
- Requirement: Hold a minimum number of board meetings as per the Companies Act, 2013 (typically at least four meetings per year for public companies and two meetings for private companies).
- Minutes Maintenance: Maintain minutes of all board meetings and resolutions passed.
4. Statutory Registers and Records
- Register of Members: Maintain an updated register of shareholders.
- Register of Directors and Key Managerial Personnel: Maintain records of directors and key managerial personnel.
- Register of Charges: Maintain records of charges created and modified on company assets.
5. Compliance Certificates
- Secretarial Compliance Certificate: Obtain a Compliance Certificate from a Company Secretary in Practice certifying compliance with all applicable laws and regulations.
- Director’s Declaration: Directors must file a declaration confirming their non-disqualification and eligibility to act as directors.
6. Income Tax and GST
- Income Tax Returns: File income tax returns annually by September 30th.
- Goods and Services Tax (GST): File monthly/quarterly GST returns and an annual return by December 31st, if applicable.
7. Corporate Governance
- Corporate Social Responsibility (CSR): Applicable to certain companies meeting specified criteria. Spend at least 2% of the average net profits of the preceding three financial years on CSR activities.
- Independent Directors: Ensure compliance with the requirements related to the appointment and roles of independent directors.
8. Other Compliances
- Audit Requirements: Conduct statutory audit of financial statements annually by a qualified Chartered Accountant.
- Appointment and Resignation of Directors: File forms with the MCA for appointment, resignation, or change in directors within specified timelines.
- Annual General Meeting (AGM): Hold AGM within six months from the end of the financial year.
Best Practices for Annual Compliances
- Compliance Calendar: Maintain a compliance calendar to track all deadlines and ensure timely filings.
- Document Management: Keep all documents and records organized and readily accessible for compliance audits.
- Regular Review: Conduct periodic reviews of compliance processes and procedures to identify and address any gaps or issues.
- Professional Assistance: Engage qualified professionals such as Company Secretaries, Chartered Accountants, and Lawyers to ensure accurate compliance.
- Training and Awareness: Train employees and stakeholders on compliance requirements to foster a culture of compliance within the organization.
Annual compliances are essential for companies and LLPs in India to uphold legal standards, maintain transparency, and protect stakeholders’ interests. By adhering to these compliances diligently, businesses can mitigate risks, avoid penalties, and ensure smooth operations while focusing on their core objectives and growth strategies. Staying updated with regulatory changes and seeking professional advice when necessary will contribute to maintaining regulatory compliance and fostering long-term business sustainability.
At Ujjwal Gupta & Co
We, at Ujjwal Gupta & Co, are dedicated to delivering personalized, high-quality solutions tailored to meet your financial and business needs. With our team of professionals and a client-first approach, we ensure that every challenge is met with expert guidance and strategic insight.
We are dedicated to ensuring your business’s success by providing best service practice available in the industry and that too at a cost effective pricing. Our team of experts is excited to work with you and provide the support you need to thrive in the Indian business landscape.
Our only motive is to create Value for Our Clients and accordingly, have a Client Value System at our Office.
So, let us help you navigate the complexities of finance and compliance, empowering you to focus on what matters most — growing your business. Get in touch today, and take the first step towards financial peace of mind.
The major annual compliance requirements for companies in India include:
- Annual General Meeting (AGM).
- Filing annual return (Form MGT-7).
- Filing financial statements (Form AOC-4).
- Income tax return (ITR) filing.
- Director KYC compliance (Form DIR-3 KYC).
Every company, except for One Person Companies (OPCs), must hold its AGM within six months from the end of the financial year. Typically, the deadline is by September 30th each year. The first AGM for a newly incorporated company should be held within nine months from the end of its first financial year.
Form MGT-7 is the annual return of the company that includes details about the company’s directors, shareholders, financial information, and other statutory details. It must be filed with the Ministry of Corporate Affairs (MCA) within 60 days from the date of the AGM, usually by November 29th of each year.
Form AOC-4 is used to file the financial statements of the company, which includes the balance sheet, profit and loss account, and cash flow statement. It must be filed within 30 days from the date of the AGM, typically by October 30th.
Yes, under the Companies Act, 2013, it is mandatory for all companies, regardless of their turnover or size, to have their accounts audited annually by a qualified chartered accountant. The auditor’s report must be presented at the AGM.
The penalties for non-compliance include:
- Late filing of annual returns and financial statements attracts a penalty of ₹100 per day until the form is filed.
- Other penalties may include fines on directors, the company being marked as a dormant company, or even the strike-off of the company from the MCA’s register.
Director KYC is the process through which directors must submit their KYC (Know Your Customer) details to the MCA. Directors must file DIR-3 KYC annually by September 30th. Failure to comply can result in the deactivation of the Director Identification Number (DIN) and a penalty of ₹5,000 for reactivation.
A company must file its annual income tax return (ITR) using Form ITR-6 if it is not claiming exemption under Section 11 (income from property held for charitable or religious purposes). The due date for filing ITR is October 31st each year if the company’s accounts are required to be audited.
Yes, private limited companies must adhere to specific compliance requirements, including:
- Holding at least four board meetings every year with a gap of no more than 120 days between two meetings.
- Filing MGT-7, AOC-4, and income tax returns annually.
- Maintaining proper statutory registers and minutes of meetings.
Listed companies have more stringent compliance obligations, including:
- Filing quarterly financial results with the Securities and Exchange Board of India (SEBI).
- Corporate governance reporting.
- Submitting reports under SEBI’s Listing Obligations and Disclosure Requirements (LODR).
- Conducting secretarial audits and filing secretarial compliance reports.
Why Choose UGC?
Client Centric Approach
Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.
Team Work
We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, social and ethnic backgrounds. We believe diversification plays a vital role in motivating the team.
Quick Turnaround
We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.
Open Communications
We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery. We provide professional services to our clients.
Client Value System
We value for the Client time and thus, we offer services that are value for money. Quality professional services are provided to our clients, so that they are able to achieve their desired results. We are a quality trademark in the industry and thus, our clients count on us always.
Quality in Delivering Work
Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.
Other Related Services
