What is a Private Limited Company?
Private Limited Company is a type of company structure that is mostly preferred by the business owners and investors in India. Any business entity who wants to make profits and enjoy the benefits of an incorporated company with limited liability, perpetual succession and separate legal identity must choose the Private Limited Company module. Registration of a Private Limited Company is regulated by the Companies Act, 2013 and governed by the Ministry of Corporate Affairs (MCA) in India. Hence, it becomes utterly important for this type of company to be compliant with the mandated statutes and norm.
Also Read: Starting a Private Limited Company in Delhi
ROC Compliance for Private Limited Company:
The compliances under Registrar of Companies for the Private Limited Company are classified into two parts. These compliances are-
- Compliances that are mandatory: A Private Limited Company must ensure that the mandatory compliances for ROC filing are being fulfilled. These compliances mandated by the statutes and acts are-
- Holding the First Board Meeting-After the Registration of the Private Limited Company it is compulsory to hold a first board meeting within 30 days of incorporation.
- Holding other subsequent meetings- In the whole financial year a total of at least four meetings of the board must be held with not more than 120 days gap between two consecutive meetings.
- Appointing the First Auditor-The Board of Directors must appoint the First Auditor of the company within 30 days of incorporation. The auditor shall hold the office till the conclusion of the first Annual General Meeting.
- Appointing other subsequent Auditors-The Board of Directors in the First Annual General Meeting must appoint the auditor. A Form ADT-1 is required to be filed with Registrar of Companies by the company informing the same.
- Disclosure of directors interest- In Form MBP-1 the directors of the company must disclose their interests in the company along with a list of relatives and their concern in the company.
- Filing the Annual Return Form-The Private Limited Company must file the annual returns through Form MGT-7 within 60 days of holding the Annual General Meeting in a financial year.
- Holding an Annual General Meeting-The Companies are required to hold an Annual General Meeting on or before 30th September of each financial year.
- Conducting a statutory audit of the accounts and transaction- Every company must prepare and maintain its accounts and books and get them audited by the end of the financial year by a Chartered Accountant.
- Filing the Financial Statements-Through Form AOC-4 the Private Limited Companies within 30 days of holding the Annual General Meeting must file their financial reports and statements.
- Other compliances that based on events: The other compliances that a Private Limited Company must follow are-
- Form INC-22 must be filed if the company has changed its registered office within 15 days of change.
- Form SH-7 is to be filed within 30 days of increase in authorized share capital through ordinary resolution.
- Form DIR-3KYC before 30th April of each financial year for application of KYC of the directors.
- Form DIR-12 for change of directors within 30 days of change.
- Form PAS-3 for increase in paid up share capital within 15 days of allotment.
- Form MGT-14 for filing agreements and resolution within the 30 days of passing of such resolution.
- Form INC-20A is to be filed within 180 days of the incorporation of the Private Limited Company for declaration of commencement or starting of the business.
- Form INC-22A for filing the Active Company Tagging Identities and Verification.
- Form CHG-1 to be filed by the Private Limited Company if there is a change in the secured borrowings within 30 days.
