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Once a Private Limited company is incorporated there are a few compliances that every company needs to comply with. 

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A few of the mandatory compliance are listed below.

 

Compliance

Description With Timeline

Auditor’s appointment

Statutory auditor (Practicing CA) has to be appointed within 30 days from the date of incorporation in the 1st board meeting

Business Commencement

Filing of form INC-20A which shows the initial subscribed/paid up capital by the shareholders

Issuing of Share Certificates

Once the initial subscription amount is deposited, share certificates have to be issued within 60 days from the date of incorporation

Board Meetings

First board meeting of the Directors shall be conducted within 30 days from the date of Incorporation of company. Minimum Four Board Meetings shall be held in a calendar year. For Pvt Ltd which is classified as Small Company, at least two Board Meetings shall be held in a calendar year

Statutory Audit of Accounts

Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of RoC filings.

Filing of Form DPT-3 

DPT 3 is a return of deposits that companies must file to furnish information about deposits and/or outstanding receipt of loan or money other than deposits.

Holding Annual General Meeting

Companies are required to hold their AGM in every calendar year within a period of six months, from the date of closing of the Financial Year.

Filing of Annual Return 

(Form MGT-7/7A)

Every Company is required to file its Annual Return within 60 days of holding of Annual General Meeting.

Filing of Financial Statements

 (Form AOC-4)

Every Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting

Preparation of Directors’ Report

Directors’ Report will be prepared with a mention of all the information required under Section 134

Maintenance of Statutory Registers

Every company has to maintain various statutory registers and records such as Register of shares, Register of Members, Register of Directors etc. Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc are also required to be preserved by the Company.

 

Addition and Cessation of Directors

A Director of a Company is a person that is elected by the shareholders to manage the affairs of the company as per the MOA and AOA. As the company is an artificial person it can only act through the agency of a natural person. Thus, a director has to be a living person and the management of the company is entrusted to its Board of Directors. The appointment of the Directors can be required from time to time based on the requirements of the shareholders of the business. A Director in a company may want to resign or the Board of Directors may want to remove the Director for several reasons. The Director of a company can also resign from the Board by filing a resignation letter with the company and also intimating the ROC with the same.

Form DIR-3 KYC – KYC of Directors

A director identification number (DIN) is a unique identifying number assigned to a person who wishes to become a director or is already a director of a corporation. DIN is obtained by submitting an application in eForm DIR-3, which was originally intended to be a one-time process for anyone wishing to become a director of one or more companies. However, as a result of an amendment to MCA’s register, all directors with DIN are now required to submit their KYC details in Form DIR 3 KYC every year.

Transfer of Shares

The transfer of shares involves the voluntary transfer of rights and, potentially, responsibilities from one individual, who is currently a shareholder of a company, to another individual who desires to become a member of the company. Consequently, shares within a company can be transferred akin to any other movable property, unless expressly restricted by the provisions outlined in the Articles of the Company.

Change in registered office of the company

The registered office of a company serves as the central hub for all business-related communications and also all the company related documents shall be maintained in the registered office of the company. Apart from the registered office, a company may also establish corporate offices, branches, factories, or administrative offices. However, it is essential for the registered office of a company in India to be officially registered with the Ministry of Corporate Affairs. The registered office of a company in India determines its legal domicile or state of incorporation. The jurisdiction of the ROC is determined by the location of the company’s registered office. In the event of a change in the registered office address, it is mandatory to notify the ROC within a period of 30 days

Increase Authorized Share Capital

Before issuing additional equity shares and raising paid-up capital, a company may need to increase the authorised share capital. The total amount of shares in a company is permitted to issue is known as authorised share capital. The total value of the issued shares of the corporation makes up the paid-up capital. Paid up capital cannot be more than the authorized share capital.

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Private Limited Company

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Limited Liability Partnership

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Partnership Firm

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Sole Proprietorship

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One Person Company

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