Annual Compliance for Private Limited Company

Annual Compliance for Private Limited Company

A private limited incorporated under the Companies Act 2013 has to comply with different laws delivered by authorities such as the Ministry of Corporate Affairs (MCA), Income Tax Department, GST Departments, etc. Annual Compliance is all about bookkeeping and accounting, auditing, holding meetings of directors and members, regular filing of annual returns, financial statements, Directors' KYC, payment of taxes, and other compliances as required from time to time.

Every private limited company incorporated in India irrespective of its size and turnover has to carry out annual compliances as applicable to it. A company must manage various operations in day-to-day business in line with the complex corporate and tax laws, which can be a difficult task. Therefore, it is advisable to carry out various activities under the guidance of a professional to understand the legal requirements and timely fulfillment of the compliances so as to avoid penalties and fines.

 Advantages Of Annual Compliance for Private Limited Company

  • Avoid Heavy Penalty

Statutory compliances are to be mandatorily followed under law, if a company does not follow the compliances regularly or doesn’t file required returns within the specified time period then the government charges heavy penalties on the company and its directors. Therefore, filing various compliances on time will help the company to avoid serious penalties, as the cost of non-compliance is always greater than the cost of compliance.

  •  Attracts Potential Investors

Potential investors usually check the financial records and compliance status of the company under various laws, before investing in any company. Therefore, companies with proper and regular compliance are preferred more by investors.

  •  Get an easy loan, finance, and subsidies

The company’s credibility and reliability are measured by the financial statements and regularity in compliance. A company with a good track record can easily approach government and private organizations for loans, financial assistance, subsidies, tenders, and other similar goals based on its established credibility, trustworthiness, and reputation.

  • Necessary for Active status of Company

If a company fails to comply with the compliance requirements under the Companies Act, then apart from heavy penalties the Registrar of Companies (ROC) shall also declare the company as a defunct company and remove its name from the register, after which the company losses its existence and becomes ineligible to carry out further business operations.

Read more - All you need to know about Annual Compliance for Private Limited Company


Comments

Post a Comment

Popular posts from this blog

Farmer Producer Company Registration

Image
  Farmer Producer Company Registration Farmer Producer Company (FPC) or Farmer Producer Organization (FPO) is an organization that has been designed taking into consideration the requirements of farmers, agriculturists, fishermen, weavers, milk producers, and persons engaged in farming activities, collectively known as ‘Producers’. The main intention of the Farmer Producer Company is to ensure better income for the producers through an organization of their own as the small producers do not have the volume of inputs to get the benefit of agricultural produce on large scale. Additionally, in agricultural marketing, there is a long chain of intermediaries, through which the producers receive only a small part of the value that the ultimate consumer pays. On the other hand, in the Farmer Producer Company, the producers have better bargaining power, bulk buyers of the produce, and bulk suppliers of inputs. Therefore, a Producer Company deals primarily with agriculture and post-harves
Read more

What Trademarks cannot be registered in India ?

Image
What Trademarks cannot be registered in India? Trademark registration paves the way for products and services to be uniquely identified. It differentiates between products and services. Trademark registration is a crucial step in establishing a unique identity for products and services. It serves as a differentiator in the marketplace and provides the trademark owner with exclusive rights to their trademark while safeguarding against infringement. This protection is essential for building goodwill, customer loyalty, and valuable assets. To ensure effective brand naming, it's important to have a clear understanding of what can and cannot be trademarked. In this article, we'll explore the limitations of trademark registration in India and provide guidance on choosing a brand name. Absolute Grounds for Refusal of Registration Void of distinguishing characteristics In Indian trademark law, the requirement of distinctiveness is strictly interpreted. A trademark that lacks
Read more

Alteration of Memorandum of Association

Image
Alteration of Memorandum of Association The Memorandum of Association (MOA) is a legal document that sets out the constitution of a company and defines the company's objectives, powers, and scope of operations. The MOA is one of the documents required to be filed with the registrar of companies during the incorporation process. The MOA is a vital document that outlines the purpose of the company, its goals, and how it intends to operate. Types of MOA as per companies act 2013 As notified under Schedule I of the companies act 2013 following are the types of MOA that different types of companies can adopt: Table A: Company limited by shares Table B: Company limited by guarantee and having a share capital Table C: Company limited by guarantee and not having a share capital Table D: Unlimited company having a share capital Table E: Unlimited company not having a share capital The MOA mainly consists of the following clauses: Name clause–   The name clause generally co
Read more