Compliance

Objective & Details

Auditor’s Appointment

• The First auditor of the company is to be appointed within 30 days of the date of incorporation of the company.
• However, in the First Annual General Meeting (AGM), the shareholders shall confirm the appointment of auditor.
• After the appointment of auditor in AGM, the company is required to file FORM ADT-1 with the RoC within 15 days of the AGM.
• Any subsequent appointment of auditor will also require filing of ADT-1.
• Non filing or delayed filing of FORM ADT-1 shall result in payment of additional filing fees.

Holding of Board Meeting

• A private limited company is required to hold a board meeting within the first 30 days of incorporation.
• Further, the gap between 2 board meetings should not be more than 120 days.
• The details of the resolutions passed in the Board Meetings should be filed to RoC within 30 days of passing such resolution. The prescribed form is E-Form MGT-14.

Annual General Meeting (AGM)

• The objective of the AGM is to present the financial statements of the company before the shareholders.
• According to the Companies Act, every company is required to hold its first AGM within 9 months from the end of its first financial year.
• All subsequent AGMs should be held within 6 months from the end of each financial year. Therefore, we can say that if a company closes its financial year on 31^st March, the AGM must be held on or before September 30^th of that year.
• It is also to be ensured that the maximum gap between 2 AGMs should not be more than 15 months.
• In the case of default in holding AGM timely, the company and every officer in default may be liable for a penalty of an amount up to Rs. 1 Lakh.

Filing of INC-20A for business commencement

• FORM INC-20A is the form prescribed for declaration of commencement of business of the company.
• First, the company need to open its bank account and introduce subscribed capital in the account.
• After that, the FORM INC-20A is required to be filed to RoC within 180 days of the date of incorporation of the company.
• This is a one-time filing by every new company.

DIR-3KYC/ WEB KYC

• Every director of the company whose DIN is allotted on or before 31^st March and whose DIN status is ‘Approved’ need to file DIR-3 KYC/ Web KYC on or before 30^th September of every year.
• DIR-3 KYC form includes basic details like director’s name, address, PAN, Aadhar and mobile number.
• Filing of DIR-3 KYC is very important as non-filing will lead to deactivation of DIN of the director. Please note that reactivation will be done only after payment of Rs. 5,000 penalties.

DPT-3

• DPT-3 is a ‘Return of Deposits’ to be filed by every company to provide details regarding deposits (outstanding loans) taken by such company.
• The FORM DPT-3 is to be filed annually.
•  The due date of filing DPT-3 is 30^th June every year.

MSME-1

• Every company which procures goods or services from Micro & Small Enterprises and whose payments to such suppliers exceeds 45 days from the date of acceptance of goods or services shall file MSME-1 which is a half yearly return.
• MSME-1 is to be filed two times in a year: For April to September: on or before 31^st October; For October to March: on or before 30^th April.

Annual Financial Statements & Annual Returns

• Every company is required to prepare its annual financial statements and file those with RoC every year.
• Annual Financial Statements are to be filed in e-form AOC-4 along with Director’s Report within 30 days of holding AGM.
• Besides Annual Financial Statements, every company is also required to file annual return to RoC in FORM MGT-7A/MGT-7 within 60 days of the conclusion of the AGM.
• Director’s Report filed with RoC should be signed by the Chairperson authorized by the Board, where he is not so authorized by at least 2 directors.

Register of Members

• Every company needs to maintain a Register of Members and file it with the RoC in Form MGT-7A/7 within 60 days of the conclusion of AGM.

Income Tax Return

• Every company shall file its income tax return for the year ending as on 31^st March on or before 31^st October every year. For example, for the financial year 2023-24, the last date of filing ITR for company is 31^st October 2024.

DIR-12

• Form DIR-12 is declaration of appointment/ resignation of directors to be filed by the company.
• The particulars of appointment/ resignation of directors, if any, along with their consent to act as directors/ Resignation Letter must be filed within 30 days of appointment/ resignation.

MBP-1

• Every director at the first board meeting of every financial year shall disclose his concern/ interest in any company/ body corporate/firm/association of individuals, including details of the shareholding in FORM MBP-1.