Asktrix

Private Limited Company Compliance Guide (Accounting, Auditing & Financial Records)

Compliance is essential for private limited companies in India to maintain legal standing and avoid penalties. Asktrix provides comprehensive support for all compliance requirements, ensuring your company meets all regulatory obligations efficiently and accurately.

Governing Acts and Rules

Private limited companies must comply with various acts and regulations:

  • Companies Act, 2013: Primary legislation governing company operations
  • Income Tax Act, 1961: Tax compliance and filing requirements
  • GST Act, 2017: Goods and Services Tax compliance
  • Labour Laws: ESI, EPF, and other employee-related compliances

Mandatory Compliance Requirements for Private Limited Companies

Annual Compliance Requirements

Financial Statements Preparation

Companies must prepare comprehensive financial statements including:

  • Balance Sheet
  • Profit and Loss Account
  • Cash Flow Statement
  • Statement of Changes in Equity

All statements must comply with Schedule III of the Companies Act, 2013 and Indian Accounting Standards (Ind AS).

Annual General Meeting (AGM)

Companies must conduct AGM within 6 months of the end of financial year to:

  • Approve financial statements
  • Appoint auditors
  • Declare dividends
  • Discuss company affairs

Statutory Audit by a Chartered Accountant

Every private limited company must undergo annual statutory audit as mandated under the Companies Act, 2013. Asktrix ensures audit standards are met and provides guidance throughout the audit process.

Filing of Annual Financial Statements (Form AOC-4)

Companies must file annual financial statements with the Registrar of Companies (ROC) within 30 days of the AGM using Form AOC-4.

Annual Return (Form MGT-7)

Annual return must be filed with ROC within 60 days of the AGM, containing details about company's shareholding, management, and other statutory information.

Quarterly and Monthly Compliance Requirements

Goods and Services Tax (GST) Filings

Companies must file monthly GST returns including GSTR-1 and GSTR-3B. Asktrix provides comprehensive assistance for GST compliance and filing.

TDS (Tax Deducted at Source) Compliance

Quarterly TDS returns must be filed using Form 24Q and 26Q. Asktrix offers tax estimation services to ensure accurate TDS calculations.

Advance Tax Payments

Companies must estimate and pay advance tax in quarterly installments based on projected income.

Other Mandatory Financial Records to Maintain

  • Registers of Members, Directors, and Loans: Maintain updated registers as per Companies Act
  • Minutes of Meetings: Board meetings and AGM minutes
  • Books of Accounts: Proper accounting records and ledgers
  • Statutory Register: Mandatory under Companies Act
  • Employee-related Records: Payroll, Provident Fund, and ESI records

Timelines and Penalties

Key Deadlines and Penalties:

  • ROC Filings (AOC-4 & MGT-7): Late filing attracts penalties up to ₹1,000 per day
  • Statutory Audit: Must be completed before AGM
  • TDS/GST Filings: Late filing penalties and interest charges apply

Benefits of Compliance with Asktrix's Expertise

  • Reduced Penalty Risks: Timely compliance prevents costly penalties
  • Efficient Record-Keeping: Organized documentation and record management
  • Expert Guidance: Professional support throughout compliance process
  • Peace of Mind: Focus on business growth while we handle compliance
FAQ

Frequently Asked Questions

Find answers to common questions about private limited company compliance, eligibility, documents, process, benefits, costs, and timelines.

Why is compliance necessary for a private limited company?

Compliance is mandatory under Indian law to maintain legal standing, avoid penalties, ensure transparency, and protect stakeholders' interests. Non-compliance can result in hefty fines and legal consequences.

What are the annual deadlines for compliance?

Key deadlines include: AGM within 6 months of financial year end, AOC-4 filing within 30 days of AGM, MGT-7 filing within 60 days of AGM, and quarterly GST/TDS returns.

Is statutory audit mandatory for all companies?

Yes, every private limited company must undergo annual statutory audit by a qualified Chartered Accountant, regardless of turnover or profit levels.

What are the ROC filing fees?

ROC filing fees vary based on authorized capital and filing type. AOC-4 and MGT-7 fees typically range from ₹200 to ₹600 depending on company size.

What penalties apply for late filing?

Late filing penalties can be up to ₹1,000 per day for ROC forms, plus additional fees. GST late filing attracts ₹200 per day penalty, and TDS late filing has ₹200 per day penalty.

Can AGM be conducted online?

Yes, AGMs can be conducted through video conferencing or other audio-visual means, subject to certain conditions and proper documentation.

How to change registered office address?

Registered office address change requires board resolution, shareholder approval, and filing Form INC-22 with ROC within 30 days of change.

Are board meeting minutes mandatory?

Yes, companies must maintain minutes of all board meetings and general meetings, properly signed and preserved for inspection.

How to manage multiple compliance deadlines?

Asktrix provides comprehensive compliance calendar management, automated reminders, and systematic tracking to ensure no deadlines are missed.

What financial records are mandatory?

Mandatory records include books of accounts, registers of members/directors/loans, minutes of meetings, statutory registers, and employee-related records.

Is audit required for zero-revenue companies?

Yes, statutory audit is mandatory for all private limited companies regardless of revenue, even if the company has zero income or is dormant.

What GST requirements apply to companies?

Companies with turnover above ₹20 lakhs must register for GST and file monthly returns (GSTR-1, GSTR-3B) and annual return (GSTR-9).

How often should advance tax be paid?

Advance tax must be paid in quarterly installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15.

Does Asktrix help with GST return filing?

Yes, Asktrix provides complete GST compliance services including registration, monthly return filing, reconciliation, and annual return preparation.

What is Form MGT-7?

Form MGT-7 is the annual return form that contains comprehensive information about company's shareholding, management, and other statutory details.

Are payroll and ESI records mandatory?

Yes, companies with employees must maintain payroll records, ESI records (if applicable), and comply with labor law requirements.

What documents are needed for TDS compliance?

TDS compliance requires PAN details of deductees, TDS certificates (Form 16/16A), quarterly returns (24Q/26Q), and annual information return (AIR).

What are AGM penalty implications?

Failure to conduct AGM within prescribed time attracts penalties up to ₹5 lakhs for company and ₹1 lakh for officers in default, plus additional daily penalties.

How does Asktrix benefit companies?

Asktrix provides expert guidance, timely compliance, penalty avoidance, efficient record-keeping, and peace of mind, allowing companies to focus on business growth while ensuring regulatory compliance.

Ensuring smooth compliance for your private limited company with Asktrix provides not only legal adherence but also ongoing support for growth and success. Our comprehensive approach ensures your company meets all regulatory requirements efficiently and accurately.

Clear your doubts

Price Starts Onwards
₹19,899 INR