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What are the Compliances for Private Limited Company?

Where a small group of people holds a company is a Private Limited Company. Section 2(68) of the Companies Act, 2013 states that a private company has a minimum paid-up share capital as prescribed. Also, the articles impose restrictions on the right to transfer the shares, limit the number of its members to two hundred (200), and restrict invitation to the public to subscribe for any securities of the company.

Unlike any other company, a Private Limited Company also needs to fulfill the statutory compliances which are discussed in this article.

List of Annual Compliance for Private Limited Company:

Type of Form

Purpose

Details

Non-compliance

Form AOC-4

Filing of financial statement along with other documents with the Registrar.<

To be filed 30 days from the conclusion of AGM.

  • For F/y 20-21: Date extended till February 15, 2022.
  • For F/y 21-22: The due date is October 30, 2022.

Penalty for not filing form Rupees 100 per day.

Form MGT-7

The annual return of a company.

To be filed within 60 days from the conclusion of AGM.

  • For F/y 20-21: Date extended till February 28, 2022.
  • For F/y 21-22: The due date is November 29, 2022.

Penalty for not filing form Rupees 100 per day.

E- Form DIR-3 KYC or

DIR-3 KYC web service

Updating of directors’ KYC details in the system

To be submitted mandatorily by:

  • Every Director
  • DIN allotted on or before the end of the financial year (F/y),
  • DIN status is ‘Approved’,
  • Before September 30th of the immediately next financial year.

DIR-3 KYC web service for DIN holder who has submitted e-Form DIR-3 KYC in any of the previous F/y, and does not need to update his KYC details as submitted in the form.

If not filed within specified due dates:

  • Deactivated due to non-filing of DIR-3 KYC’

Annual General Meeting

The private limited company must hold an annual general meeting in accordance with Section 96 of the Act.

To be held within six (06) months, from the date of closing of the financial year and not more than fifteen (15) months shall elapse between two annual general meetings.

  

Director's report

In accordance with Section 134, rule 8 of the Companies Act 2013 and other applicable provisions.

Board’s Report, Financial Statement, must be approved by the Board of Directors

  

Other Mandatory Compliance for Private Limited Companies:

The ROC compliances also include various event-based compliances such as:

  • Change in Director / Key Managerial Person (KMP)
  • Change in the authorized capital
  • Change in Paid-up Share Capital
  • Change of name of the company
  • Alteration in Memorandum (MOA) or Article (AOA) of the company
  • A shift in registered office
  • Change of the statutory auditors
  • Investment decisions
  • Creation/modification/satisfaction of charge
  • Opening or closing of Bank account
  • Changing in Bank Signatories
  • Right Issues, Private Placements, and more.

Company compliances are not limited to ROC compliance, but it also covers income tax compliances such as GST Returns, Tax Audit Report, advance tax liability, Income Tax Returns, TDS returns, etc., that are also to be fulfilled within specified time limits.

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