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Annual Compliances for a Company

Operating a company involves much more than just focusing on business growth and operations. In today’s highly regulated environment, companies are required to adhere to a series of mandatory annual compliances to maintain their legal standing and continue to operate smoothly. These compliance obligations are not just a formality but are essential to ensure that businesses operate within the bounds of the law, maintain transparency, and fulfill regulatory requirements set by the government and other authorities.

Annual compliances are a set of legal and regulatory activities that every company must fulfill each year. These include filing essential documents such as financial statements, holding annual general meetings, filing tax returns, and submitting various forms to government agencies. These obligations are designed to create accountability, ensure fair business practices, and protect stakeholders’ interests. Failure to meet these compliance requirements can lead to severe consequences such as financial penalties, legal disputes, and in extreme cases, even the suspension or closure of business operations.

Maintaining compliance requires a deep understanding of ever-evolving laws and regulations. These regulations can be complex and vary depending on the nature of the business, the size of the company, and the jurisdiction under which it operates. As such, managing these compliance requirements can be a challenging and time-consuming task for business owners and executives who are focused on the day-to-day operations of their company.

At eTaxcart, we understand the importance of adhering to these annual compliance requirements and the challenges that come with managing them.

Our expert team of professionals offers comprehensive compliance services that are designed to ensure that your company remains in good standing with all relevant regulatory authorities. Whether it is timely filing of financial statements, conducting annual meetings, or submitting tax returns, we handle the intricate details of compliance so that you don’t have to.

Annual Compliance for Private Limited Company/OPC

Annual compliance for companies involves fulfilling various legal and regulatory obligations, ensuring timely filings, maintaining financial transparency, and adhering to tax and corporate governance requirements to remain compliant with applicable laws.

Business Commencement Filing (INC 20A)

The Business Commencement Filing, or Form INC-20A, is a mandatory filing for companies incorporated under the Companies Act, 2013 in India. This form must be submitted within 180 days of incorporation to confirm that the company has commenced its business operations. The filing informs the Registrar of Companies (RoC) that business activities have started and is a key compliance step to ensure legal standing.

Form INC-20A is a simple declaration confirming that the company has received the required capital and has begun operations. It also verifies that the company has a valid address for conducting its business.

Late Fees and Timeline

If Form INC-20A is not filed within the 180-day deadline, late fees are levied. A penalty of ₹100 per day is imposed for delayed filing, which can quickly accumulate.

Failure to file within the prescribed time may result in the company being struck off the Register of Companies, leading to the loss of its legal status. Therefore, it is crucial to complete the filing on time to avoid penalties and ensure that the company remains compliant and operational.

Appointing an Auditor in New Incorporation

Upon the incorporation of a new company, one of the first key steps is to appoint an auditor. As per the Companies Act, 2013, every company, except for a One Person Company (OPC), is required to appoint an auditor within 30 days from the date of incorporation. Failing it will result Rs. 300 penalty per month or more depending upon the capital.

Form AOC-4: Filing of Financial Statements

Form AOC-4 is a mandatory form that needs to be filed by all companies, including private limited companies, under the provisions of the Companies Act, 2013. This form is used for the filing of the financial statements of the company, which include the balance sheet, profit and loss account, cash flow statement, and the directors’ report.
The Form AOC-4 must be filed with the Registrar of Companies (RoC) after the Annual General Meeting (AGM), along with the financial statements approved by the board of directors. The primary purpose of this form is to provide the RoC with an overview of the company’s financial health and ensure that it is in compliance with statutory regulations.
Due Date:
The due date for filing Form AOC-4 is within 30 days from the date of the AGM. In case the AGM is held later than the usual timeframe, the form must be filed within 30 days from the date of the AGM. For example, if a company holds its AGM in September, Form AOC-4 must be filed by October 30th.
Penalty for Late Filing:
Failure to file Form AOC-4 within the prescribed timeline attracts late fees. The penalty for late filing is ₹100 per day from the due date until the form is submitted. This late fee continues to accrue until the form is filed, making it crucial for companies to comply with the due dates to avoid excessive penalties.

In case of further delays or non-compliance, the company and its officers may face additional legal consequences, including fines and possible legal action. Therefore, it is important to ensure timely filing of Form AOC-4 to avoid penalties and ensure statutory compliance.

Form MGT-7: Annual Return Filing

Form MGT-7 is a vital filing under the Companies Act, 2013, used to submit a company’s annual return. This form provides a summary of the company’s structure, shareholders, directors, and financial performance, ensuring compliance and transparency with the Registrar of Companies (RoC).

The form includes:

  • Shareholding patterns.
  • Changes in shareholding.
  • Directors’ and key managerial personnel’s details.
  • Registered office address.
  • Compliance with the Companies Act.

Due Date:
Form MGT-7 must be filed within 60 days from the date of the Annual General Meeting (AGM). Since the AGM must occur within 6 months from the end of the financial year, the due date typically falls around September 30th for companies with a financial year ending on March 31st.
Penalty for Late Filing:
If Form MGT-7 is not filed on time, the company faces a penalty of ₹100 per day of delay. This penalty continues to accrue until the form is submitted. Prolonged delays can lead

Other Annual Compliances for a Company

Form DIR-3 eKYC - LLP Compliance

Overview:
Form DIR-3 eKYC is a compliance requirement introduced by the Ministry of Corporate Affairs (MCA) for all directors of companies and designated partners of LLPs. This form ensures that the personal details of directors and designated partners are updated annually with the MCA for security and verification purposes.

Key Details:

  • Purpose: Form DIR-3 eKYC is used to update the KYC (Know Your Customer) details of directors and designated partners in the MCA database, ensuring that their contact information and other personal details are accurate.
  • Who Needs to File: All designated partners of LLPs are required to file Form DIR-3 eKYC. This includes individuals who hold the position of designated partners in any LLP registered in India.

Due Date:
The due date for filing Form DIR-3 eKYC is September 30th of every financial year. It is mandatory to complete the eKYC process annually.
Penalties for Non-Compliance:
Failure to file Form DIR-3 eKYC by the due date can result in a penalty of ₹5,000 for each designated partner. Further delays can attract additional fines and may lead to the disqualification of the partner or director from holding office.

Required Documents for Annual Compliance of Company

These documents are required for Annual Compliance of a Company.

Documents for Annual Compliance of Company

View the documents required for Annual Compliance of Company.

  • Audited Financial Statements: Complete audited balance sheet, profit & loss statement, and cash flow statements for the financial year.
    Board Report: A report prepared by the board of directors, detailing the company’s performance, activities, and future plans.
  • Auditor’s Report: The auditor’s report on the financial statements, confirming their accuracy and compliance with accounting standards.
  • Shareholding and Director Details: Information regarding the company’s shareholders and directors, including any changes that occurred during the financial year.
  • Digital Signature Certificate (DSC) of Authorized Director: A valid DSC for the authorized director(s) to electronically sign the necessary filings with the Registrar of Companies (ROC).

Additional Documents

View the additional documents required for Annual Compliance of Company.

Depending on the specific case or the package selected, other documents may be required, such as:

  • Director’s Report
  • Minutes of Board and General Meetings
  • Resolutions passed by the Board or shareholders during the year
  • Any amendments to the company’s Articles of Association or Memorandum of Association
  • Or any other document

Our Pricing Plans

Choose the plan that best fits for you. We have three major plans to offer.

Starter

8499+ Govt Fees *
  • Commencement of business filing/ INC 20A
  • Issuance of share certificate
  • Auditor Appointment ADT-1
  • AOC 4 filing
  • MGT 7 filing

Elite

35499+ Govt Fees ***
  • All features outlined in the growth package.
  • GST filing for one year
  • Income tax return for 2 directors
  • Accounting & Bookeeping (upto 250 transaction annually)
  • Financial statement preparation
  • TDS filing for one year
  • Expert POC

Choose any of the pack for the annual compliances of One Person Company with discount of Rs. 2000, each package mentioned above.

Government fees wherever applicable in the form filing will be extra and receipt for the same will be issued at the time of filing.

* Audited Financial statements and details will be provided by the client and turnover below 20 Lakhs and authorised share capital of 1 Lakh or less.
** Audited Financial statements and details will be provided by the client and turnover below 40 Lakhs and authorised share capital of 1 Lakh or less.
*** Audited Financial statements and details will be provided by the client and turnover below 100 Lakhs and authorised share capital of 1 Lakh or less.

Why Choose eTaxCart for Annual Compliance Company?

Simple and Quick Process

We simplify the annual compliance process for companies, making it seamless and hassle-free, so you can focus on growing your business while we take care of all the legalities.

Affordable Fees

Our annual compliance services for companies are cost-effective, providing excellent value for your investment in ensuring regulatory compliance and maintaining your business’s legal standing.

Expert Guidance

Our experienced professionals offer step-by-step guidance, ensuring your company meets all legal requirements in a timely manner, without delays or complications.

Frequently Asked Questions

Here are the answers of the questions we received frequently.

Is it mandatory to appoint an auditor in a newly incorporated company?

Yes, every company (except a One Person Company) must appoint an auditor within 30 days of incorporation. Failure to do so could lead to penalties.

What are the basic forms needed for annual compliance?

The key forms include Form AOC-4 for financial statements, Form MGT-7 for annual returns, and other forms such as Form INC-20A for business commencement. These forms must be filed with the Registrar of Companies (RoC) to ensure the company is compliant with the Companies Act, 2013.

What is the due date for holding an AGM?

The AGM must be held within six months from the end of the financial year, which means for companies with a financial year ending on March 31, the AGM must be held by September 30.

How often should the minutes of meetings be maintained?

Minutes of board meetings and AGM should be recorded and maintained as part of annual compliance. These minutes must be signed by the chairperson and kept in the company’s records.

How can eTaxcart help with filing and managing annual compliance for my company?

eTaxcart simplifies the process by handling the filing of all necessary forms, ensuring timely submissions. Our expert team provides guidance for everything from financial statement preparation to maintaining statutory registers, ensuring your company stays compliant.