Compliance comes with administrative costs, such as filing fees, professional fees for accounting and legal services, and the costs associated with regular audits.
Need Private Limited Company Compliance? We are a perfect match.
A Private Limited Company in India must comply with a wide range of legal, financial, tax, and regulatory requirements as prescribed under various statutes, primarily the Companies Act, 2013. Other than the Companies Act, several other laws like Income Tax Act, 1961, Goods and Services Tax (GST) Act, 2017, Labour Laws, and others apply depending on the business operations.
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Process of private limited company compliances
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đź“ž Get in Touch with Us
Call or WhatsApp us for a free compliance consultation. We assess your company’s financials, structure, and filing history to determine applicable annual and event-based compliances.
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đź“„ Document Collection
We collect incorporation documents (COI, PAN, MOA, AOA), financial statements, meeting records, audit reports, and previous filings, if any.
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đź’ł Fee Payment
Pay our professional charges securely via UPI, bank transfer, or online payment link—based on annual or monthly compliance packages.
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đź“Š Accounts Finalisation & Audit Coordination
We coordinate with your auditor for book finalisation, schedules preparation, and statutory audit, ensuring everything aligns with Companies Act and Income Tax norms.
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đź“ť ROC Filings (MCA Compliance)
We prepare and file all mandatory ROC forms, including AOC-4 (Financial Statements), MGT-7 (Annual Return), DIR-3 KYC for directors, ADT-1 (Auditor Appointment), MGT-14 (where applicable).
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đź“‹ Board Meeting & AGM Documentation
We help draft Notices, Agendas, Resolutions, and Minutes for Board Meetings and AGMs, as per secretarial standards.
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đź“š Statutory Registers & Disclosure Tracking
We maintain digital Statutory Registers, record director disclosures (MBP-1, DIR-8), and track shareholding patterns as per company law.
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🧾 Income Tax Return Filing & TDS Compliance
We file the company’s ITR (Form ITR-6), ensure Tax Audit compliance, and handle TDS returns (Form 24Q/26Q) and Form 16/16A issuance.
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🔧 Post-Filing & Event-Based Support
We provide regular reminders, handle resolutions for changes in directors, capital, office address, etc., and assist in GST, PF, ESIC, and startup-related compliances, if applicable.
Documents Required for Private Limited Company Compliance
Incorporation Documents
â—¦ Memorandum of Association (MOA) â—¦ Articles of Association (AOA) â—¦ Form DIR-12 for Director Details â—¦ Registered Office Address Proof
Financial Statements
◦ Balance Sheet ◦ Profit and Loss Account ◦ Cash Flow Statement ◦ Director’s Report ◦ Auditor’s Report
Statutory Registers
â—¦ Register of Members â—¦ Register of Directors â—¦ Register of Charges â—¦ Minutes of Board Meetings and AGM
Filing Documents
â—¦ Form AOC-4 (for filing financial statements) â—¦ Form MGT-7 (for filing annual returns) â—¦ Form DIR-12 (for changes in directors) â—¦ Tax Returns (Income Tax and GST)
Legal Documents
â—¦ Shareholding Pattern â—¦ Intellectual Property Registration â—¦ Contracts and Agreements â—¦ RBI Compliance (FEMA) â—¦ Environmental Compliance Documents
Corporate Social Responsibility (CSR) Documents
â—¦ CSR Policy â—¦ CSR Committee Meeting Minutes â—¦ CSR Annual Report â—¦ Form CSR-1Advantages of Private Limited Company Compliances
Legal Protection
Complying with the legal requirements ensures that the company is recognized as a separate legal entity and is protected from personal liability. The shareholders’ liability is limited to their shareholding.
Access to Funding
Compliant companies can more easily raise funds from venture capitalists, private equity, and banks due to their legal structure and transparency.
Credibility
Being a private limited company that adheres to all legal compliances enhances the company’s credibility, making it more trustworthy to investors, clients, and partners.
Tax Benefits
Private limited companies can benefit from tax incentives like deductions, depreciation on assets, and tax treatment for business losses, making it more advantageous for businesses.
Limited Liability
Shareholders’ liability is limited to the amount of capital they have invested, offering personal asset protection.
Growth Opportunities
Compliant companies have the flexibility to issue shares, bring in new investors, and expand, which enhances the company’s ability to grow.
Disadvantages of Private Limited Company Compliances
Cost of Compliance
Complexity
There are many regulations to follow (Companies Act, GST laws, tax filing, etc.), and failure to comply can result in penalties. Managing compliance can be complex and time-consuming, especially for small businesses.
Public Disclosure
Certain documents, such as the company’s financial statements and directors’ details, are publicly available, which might be a disadvantage for businesses wishing to maintain privacy.
Frequent Reporting
Private limited companies are required to file several reports and returns on a regular basis, which can be an ongoing administrative burden.
Limited Ownership
A private limited company can have a maximum of 200 members (shareholders), which limits the ability to raise capital compared to public companies.
Exit Strategy
Exiting or transferring ownership in a Private Limited Company can be more complex. Share transfer requires the approval of existing shareholders, and it can be time-consuming to find a buyer or investor who is interested in purchasing shares.
Requirements for Private Limited Company Compliance
Incorporation Documents
The company must be incorporated under the Companies Act, 2013 with the Registrar of Companies (ROC).
Board of Directors
The company must have at least two directors and a maximum of 15 directors, who are responsible for the company’s governance and compliance.
Shareholders
A private limited company must have at least two shareholders and a maximum of 200 shareholders.
Registered Office
The company must have a registered office where all legal documents and communications are addressed.
Director Identification Number (DIN)
Directors must obtain a DIN, which is required for any individual who is appointed as a director.
Permanent Account Number (PAN)
The company must have a PAN, which is required for tax filings.
Goods and Services Tax (GST) Registration
If the company’s turnover exceeds the threshold limit, it must obtain GST registration.
Annual Filing
Private limited companies are required to file annual returns, financial statements, and audit reports with the ROC and the Income Tax Department.
Statutory Registers
The company must maintain certain statutory registers that include, Register of Members, Register of Directors and Key Managerial Personnel, Register of Contracts, Register of Share Transfer; These registers should be updated regularly and available for inspection.
Compare with other formation types
Pick a Business Structure That Works Best For Your Business
- Applicable Law
- Registration
- Number of Owners
- Separate Legal Entity
- Liability Protection
- Statutory Audit
- Ownership Transfer
- Perpetual Existence
- Foreign Ownership
- Taxation Liability
- Compliance Requirement
Frequently Asked Questions (FAQs) for Private Limited Company Compliance
What is the minimum number of directors required for a private limited company?
A private limited company must have at least 2 directors and no more than 15.
How often do I need to hold board meetings?
A private limited company is required to hold at least 4 board meetings per year, with no more than 120 days between each meeting.
How often do I need to file annual returns?
The company must file annual returns (Form MGT-7) and financial statements (Form AOC-4) with the ROC every year.
Do I need to conduct an audit for my company?
Yes, a private limited company is required to have its accounts audited by a certified Chartered Accountant (CA) annually.
What happens if the company fails to comply with the regulations?
Non-compliance with company laws can lead to penalties, fines, or even the company being struck off from the ROC registry. Directors may also face legal consequences for failing to comply.
Is GST registration mandatory for a private limited company?
GST registration is required if the company’s turnover exceeds the prescribed threshold (₹40 lakhs for most businesses), or if it is engaged in inter-state sales, or provides specific services.
Can I convert my private limited company into a public company?
Yes, a private limited company can be converted into a public company if it meets the necessary requirements, such as having a minimum of 7 members.
How long should I retain company records?
The company must retain records such as financial statements, minutes of meetings, and statutory registers for a period of 8 years, or as required by specific laws.
Related business registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an advisor to find out registrations your business may require post registration.
Related business services
Income Tax Returns
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Accounting and Book keeping
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