Annual Compliance for Private Limited Company
Every Private Limited Company (Pvt. Ltd.) in India must comply with annual legal and financial requirements as per the Companies Act, 2013. These compliances ensure transparency, business credibility, and avoid hefty penalties from the Ministry of Corporate Affairs (MCA).
Why Annual Compliance is Important?
- Ensures smooth functioning of the company
- Builds trust among investors, lenders, and clients
- Prevents penalties, fines, and disqualification of directors
- Helps maintain legal standing with MCA & Income Tax authorities
- Provides credibility while raising funds or applying for loans
Key Annual Compliances at a Glance
| Compliance | Timeline / Due Date | Purpose |
|---|---|---|
| Board Meetings | Minimum 4 per year (every quarter) | For discussing company’s operations and approvals |
| Annual General Meeting (AGM) | Within 6 months from end of financial year | For presenting financials to shareholders |
| Appointment of Auditor (ADT-1) | Within 30 days of incorporation / AGM | To appoint or reappoint statutory auditors |
| Filing of Financial Statements (AOC-4) | Within 30 days of AGM | To file audited financial statements with MCA |
| Annual Return (MGT-7) | Within 60 days of AGM | To provide details of shareholders, directors, and company structure |
| Director KYC (DIR-3 KYC) | 30th September every year | To validate director’s details with MCA |
| Income Tax Return | 30th September (Tax Audit cases) | Mandatory filing of company’s ITR annually |
Documents Required
- Certificate of Incorporation
- Memorandum of Association (MoA) & Articles of Association (AoA)
- Financial Statements (Balance Sheet, P&L, Cash Flow)
- Audit Report by Chartered Accountant
- Directors’ details (PAN, Aadhaar, DIN)
- Shareholding pattern
Process of Annual Compliance
- Hold Board Meetings & AGM – Discuss and approve financial matters.
- Prepare Financial Statements – Get accounts audited by a Chartered Accountant.
- File Annual Returns (AOC-4 & MGT-7) – Submit with MCA before deadlines.
- Director KYC – Update and validate directors’ details annually.
- File Income Tax Return – As per due dates to Income Tax Department.
Benefits of Staying Compliant
- Avoids heavy MCA penalties (up to ₹100 per day of delay)
- Boosts credibility with banks, investors, and stakeholders
- Ensures legal protection to directors and shareholders
- Smooth loan approvals and investor onboarding
- Enhances business goodwill and sustainability
Certification
