Overview

The term compliance describes the ability to comply with orders, set of rules, or requests.
A private limited company that has been incorporated in India must ensure the compliances concerning the Companies Act, 2013 are adequately met.
The Companies Act, 2013 regulates the appointment, qualification, remuneration, and retirement of the Company's Directors and other aspects such as conducting board meetings and shareholder meetings.
The RoC compliance for registered Private Limited Companies is necessary. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement.
All companies registered in India like a private limited company, one person company, limited company, and section 8 company need to maintain the annual compliances like annual returns and income tax return each year. Though Company Registration happens to be the most popular form of starting a business, various compliances need to be followed once the business is Incorporated.
Managing the business's everyday operations while complying with the difficult corporate laws can be a task for the entrepreneur. So, it is always better to take the professionals' help and understand the legal requirement to ensure timely fulfillment of these compliances to waive off the penalties or fines.
Here, we will look at some of the Common compliances that a private limited company has to ensure mandatorily.

Get Started For Annual Company Compliance

Checklist for Annual Company Compliance

Benefits of Accounting & Business Compliances

• Budgeting: It assists organisations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals.
• Evaluating the Business's Performance: Helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on.
• Managing Cash Flow: Keeping track of the money that comes into the business on a regular basis helps in projecting patterns, paying employees and suppliers, repaying debts, etc.
• Financial Information to Investors and Stakeholders: Investors will gain a better understanding of the business's financial health, including its solvency, creditworthiness, liquidity, stock, and bond issuers.
• Mandatory by law: In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.

Documents required for Accounting & Annual Compliances

The documents required will vary depending on the service you require. Our professionals will convey the same to you based on your requirements.

Procedure for Filing Annual Compliance

The mandatory compliances that most businesses must meet are as follows:

• Step 1 : Facilitation of meetings of board of directors:
  The first meeting has to be conducted within 30 days of incorporating a business after which four meetings shall be held every quarter in a calendar year. There should not be more than 120 days between two consecutive meetings.
• Step 2 : Preparation of the minutes of proceedings of meeting:
  Every company needs to file its minutes of the meetings and they shall be preserved permanently to add value in case of any dispute. The meeting minutes are to be maintained at the registered office.
• Step 3 : Issuance of share certificates:
  The company is required to issue a share certificate to the subscribers of the memorandum within 60 days of incorporation.
• Step 4 : Filing of disclosures of directors' interests and declarations of disqualification:
  In the first board meeting, all the directors are required to make disclosures about their interests in other business entities.
• Step 5 : Filing declarations of commencement of business with the RoC:
  This has to be done upon registration of the company. Form INC 20A mandatorily needs to be filed within 180 days of incorporation.
• Step 6 : Facilitation of annual general meetings:
  A company shall conduct at least one AGM each year. The first AGM shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.

Why Filemydoc.com for Accounting & Business Compliance

As a benefit of working with industry specialists, our team will keep track of all changes to the various relevant regulations and keep you up to date and compliant. Our accounting and compliance team will collaborate closely with you to identify all needs and ensure that the procedure is completed on time. Our experts will assist you in a broad spectrum of financial services that cover:

• Basic financial consultation:
  We have expert chartered accountants and financial professionals who offer basic financial consultation that your company needs.
• Bookkeeping:
  Bookkeeping is a process of recording financial transactions and information on a daily basis. The account bookkeeping services may include payments made to suppliers, loan payments, customer invoice payments, monitoring asset depreciation, and generating financial reports.
• Preparation of accurate annual financial statements and monthly reports:
  The balance sheet, income statement, and cash flow statement provide information on the company's financial position, including an overview of assets and liabilities, as well as stockholders' equity. It also helps in understanding the company's earnings and expenditures, as well as how the company pays its obligations and meets its operating expenses.
• Assistance in designing invoices:
  Invoices are records of a company's sales transactions. They include information on the shipment, such as the quantity of items, item descriptions, total sale price and selling price per item, terms of sale, buyer and seller information, amount due, invoice number, payment method, and payment due date. Invoices establish the legal rights, wherein if the customer fails to make the due payment, the company can take it forward legally.
• Basic taxation advisory:
  Our taxation experts offer the best-in-class tax planning strategies that are suitable for your business structure. We understand the changing tax regimes in India and offer timely information.

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