Most start-ups and new businesses in India are registered as private limited companies. Under the provisions of the Companies Act, 2013, there are certain compliance requirements that Private limited companies would need to comply with in order to avoid penalties, or worse, strike-off. These annual compliances include mandates covered under various provisions of the Act, along with the mandates under the Companies Rules.
Most start-ups in India fall under the category of private companies that have its paid-up capital as less than INR 50 lakhs. Under the Companies Act, annual compliance can be classified as:
Related: Due Dates of Annual Compliance
Companies have to complete the following compliances as well that are not filed with the registrar of companies:
Apart from compliances with the MCA and the Registrar of Companies, the company would have to comply with the following.
Also Read: How is Tax filing done in Private Limited Company?
The companies must ensure that all the mandatory compliances are filed with the Registrar of the Companies (ROC) or else the company is charged a heavy penalty based on the number of compliances missed. Moreover recently MCA has increased the penalty cost to 200 Rs per day.
If all the compliances are not completed the Digital signature of the director is suspended and will only be activated again if the complete penalty and compliances are paid.
Hiring a professional to take care of your annual compliance makes running a business in India much easier. While there are certain regulations to be followed, you also need to be abreast about any changes and notifications in the company compliance rules.