Introduction

Once a Private Limited Company (Pvt Ltd) is successfully registered, the work does not end there. The company must comply with various legal, financial, and tax-related requirements to avoid penalties and maintain its good standing with regulatory authorities.

This guide provides a detailed breakdown of mandatory compliance requirements for a Private Limited Company, the penalties for non-compliance, and how ASK ASSOCIATES can help ensure a hassle-free experience.

1. Key Post-Registration Compliance Requirements

A Private Limited Company must fulfill the following compliance obligations:

✅ Annual Compliance Filings (Financial Statements, ROC Filings)
✅ Income Tax Returns (ITR) Filing
✅ Statutory Audits & Auditor Appointment
✅ Director Compliance (DIN KYC, Board Meetings)
✅ Goods and Services Tax (GST) Compliance
✅ Labour Law Compliances (EPF, ESI, etc.)

Failing to comply with these regulations can result in heavy fines, disqualification of directors, and even company closure.

2. Immediate Compliance Requirements After Incorporation

Appointment of Auditor (Within 30 Days)

• A statutory auditor must be appointed within 30 days of incorporation.
• The company must inform the Registrar of Companies (ROC) by filing ADT-1 Form.
• If an auditor is not appointed, the company may face penalties up to ₹1,000 per day.

Issuance of Share Certificates (Within 60 Days)

• Share certificates must be issued to shareholders within 60 days of incorporation.

Opening a Business Bank Account

• A dedicated corporate bank account must be opened in the company’s name.
• The bank account should be used for all business transactions.

Filing of INC-20A (Declaration of Business Commencement)

• Newly registered companies must file Form INC-20A with the MCA within 180 days of incorporation.
• This form declares that the company has received its paid-up capital and has started operations.
• Non-filing of INC-20A can result in a penalty of ₹50,000 for the company and ₹1,000 per day for directors.

3. Annual Compliance Requirements for Private Limited Companies

Filing of Financial Statements (AOC-4) – Every Year

• Companies must file AOC-4 Form with the MCA within 30 days of the Annual General Meeting (AGM).
• This includes the Balance Sheet, Profit & Loss Statement, and Audit Report.
• Non-filing results in a penalty of ₹100 per day.

Annual Return Filing (MGT-7) – Every Year

• The company must file MGT-7 Form with the ROC within 60 days of the AGM.
• It includes shareholder details, director details, and other company information.
• Penalty for non-compliance: ₹100 per day.

Income Tax Return (ITR) Filing

• Every Private Limited Company must file its Income Tax Return (ITR-6) before 30th September every financial year.
• Non-filing leads to penalties ranging from ₹10,000 to ₹1,00,000.

Board Meetings & Annual General Meeting (AGM)

• A Private Limited Company must conduct at least 4 Board Meetings per year.
• An Annual General Meeting (AGM) must be held within 6 months after the financial year ends.

4. GST & Other Tax Compliance

GST Registration & Filing (If Applicable)

• A Pvt Ltd Company must register for GST if turnover exceeds ₹40 lakh (₹20 lakh for services).
• Monthly/Quarterly GST returns (GSTR-1, GSTR-3B, GSTR-9) must be filed.

TDS Return Filing

• If the company deducts Tax Deducted at Source (TDS), quarterly TDS returns must be filed.
• Non-compliance leads to penalties starting from ₹200 per day.

5. Penalties for Non-Compliance

Failing to follow compliance obligations can result in:
🚨 Monetary penalties (₹100 per day for late filings).
🚨 Disqualification of directors if financial filings are not done for 3 consecutive years.
🚨 Legal action & company strike-off if returns are not filed for long periods.

6. How ASK ASSOCIATES Can Help with Compliance?

Managing compliance can be time-consuming and complex. ASK ASSOCIATES ensures:

✅ Timely ROC, GST, and ITR filings to avoid penalties.
✅ Expert guidance on tax and audit compliance.
✅ Affordable annual compliance packages.
✅ End-to-end legal and accounting support.

📞 Contact ASK ASSOCIATES today for a hassle-free compliance solution!