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May 12
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Posted by:MyEfilings
Compliance Guide for Private Limited Companies

 

Every Private Limited Company has take care of some basic compliance irrespective of its size and turnover. In this article we have tried to explain the basic compliance requirements and things to remember for every Private Limited Company.

Introduction of Share Capital in Company

The first thing you have to do after incorporation of your company is to introduce share capital in Company. The Share Capital of the Company has to be introduced within 30 days of Incorporation. Unless you open your Bank Account, you will not be able to introduce the Share Capital. Note that the Share Capital can be introduced by Account Payee Cheque or Bank Transfer only.  Share Certificates of the Company have to be issued within 2 months from the date of incorporation

First Board Meeting of the Company

The First Board Meeting of the Company should be held within 30 days of Incorporation. First Auditor of the Company is appointed in the First Board Meeting of the Company. It is advised to intimate the Registrar of Companies about Appointment of Auditor within 15 days of Auditor’s Appointment.

Maintenance of Records

Besides the Books of Accounts and other records, the Companies Act, 2013 requires every Company to maintain the Minutes Book and Statutory Registers at the Registered Office of the Company. Register of Members, Attendance Register for Board and Committee, Register of Loans, Register of Directors and Key Managerial Personnel etc. are few amongst all.

It is very important to maintain record of ALL the Resolutions passed by the Company. Though the same is not always filed with the Registrar of Companies immediately, the same will be required at the time of filing of Annual Compliance.

Compliance Related to Stationery and Name Board

Company’s Letterheads, Visiting Cards, Name Board outside Registered Office etc should have the Name of the Company, Registered Office Address, Company’s CIN, Telephone Number, Email I’d and Website URL (if any).

Annual Compliance

Every Private Limited Company is liable to file its Annual Compliance in the forms specified by the Ministry of Corporate Affairs. Besides filing of Annual Compliance, the Company has to call the Annual General Meeting of the Shareholders of the Company once every year. The Annual General Meeting of the Company should be held within 6 months from completion of Financial Year i.e. on or before 30th September every year. Notice of 21 days has to be given for the General Meetings of the Company.

Meetings of the Board of Directors

There has to be minimum four meetings of the Board of Directors of the Company in a year.  Gap between two Board Meetings should not be more than 120 days. Notice of 7 days has to be given for the Directors’ Meeting.

Note that the proof of service of notice of General and Board Meetings should be maintained in company’s records.

Income Tax Compliance

It is desirable that you maintain the Books of Accounts of your company on regular basis. Basic data for all the compliance is derived from the Books of Accounts. With the data extracted from the Books of Accounts, payments towards TDS, VAT, Service Tax, Advance Tax etc. can be made accurately.

Here are the dates for payment of Advance Tax of the Company

Due Date

For corporate taxpayers

 

On or before 15th June

15% of advance tax

 

On or before 15th September

45% of advance tax

 

On or before 15th December

75% of advance tax

 

On or before 15th March

100% of advance tax

 
 

Further, payment towards TDS has to be made within 7 days from the end of the month in which the amount is paid or credited (whichever is earlier). However for the month of March, the date of payment of TDS is 30th April. Quarterly TDS returns have to be filed on 31st July, 31st October, 31st January and 31st May for the quarters ended on 30th June, 30th September, 31st December and 31st March respectively.

TDS Certificates should be issued within 15 days of filing of TDS Returns

Other points to remember

  • The company cannot take loans from any person other than Directors, Relatives of Directors, NBFCs and Banks.
  • The company cannot advance loans to Directors and Relatives of Directors

We have tried to explain the basic compliance requirements for Private Limited Companies. Contact us for further consultation on Private Limited Company on info@myefilings.com or Call us at +91 70210 55600



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