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

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

Stamp Duty On LLP Agreement

Image
  Stamp Duty on LLP Agreement What Is an LLP Agreement? The LLP agreement must encompass detail regarding rules and regulations for its partners. Every LLP agreement ought to be stamped to ensure authenticity. The applicant needs to take the printout of the agreement on the non-judicial stamp. Stamp duty varies from state to state and also depends on the contribution of Capital. The LLP agreement serves as a legal document that covers all aspects of the partnership, from its incorporation to its dissolution. It includes details on the roles of partners, their mutual rights, profit sharing, and contributions. The LLP agreement also outlines the partnership's rules and regulations in greater detail. For instance, it may provide information on how new partners can be appointed and how their tenure will end. How is the LLP Agreement prepared? To prepare an LLP agreement, all partners of the Limited Liability Partnership must discuss, agree upon, and sign the clauses outlined i
Read more

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