Annual Compliance for Private Limited Companies
Every company is required to file their financial statements and annual returns with the Ministry of Corporate Affairs (MCA). Maintain transparency, avoid heavy daily penalties, and stay compliant.
Mandatory Annual ROC Filings
As per the Companies Act 2013, every company must file its financial statements (Balance Sheet, Profit and Loss account) with an Audit Report and Director Report within a specific time limit. The core forms are Form AOC-4 and MGT-7/7A.
Crucial Warning: The late fee for non-filing of AOC-4 and MGT-7 is ₹100 per day without any maximum limit. Delayed filing can lead to massive unmanageable penalties and director disqualification.
1. Director KYC (DIR-3 KYC)
Mandatory if DIN is allotted on or before 31st March of the financial year.
Due Date
On or before 30th September of the immediate next financial year.
Penalty
Flat ₹5,000 and DIN deactivation.
2. Auditor Appointment (ADT-1)
Filed for the appointment of the statutory auditor, approved by shareholders in the first AGM.
Due Date
Within 15 days from the Date of AGM.
Penalty
Dependent on the nominal capital amount.
3. Financial Statement (AOC-4)
Balance Sheet, P&L Account, and Directors’ Report.
Due Date
Within 30 days of holding the AGM.
Penalty
₹100 per day of delay.
4. Annual Return (MGT-7/7A)
Annual Returns for Small Company/OPC (MGT-7A) or Standard Company (MGT-7).
Due Date
Within 60 days from the Date of AGM.
Penalty
₹100 per day of delay.
Statutory Audit & ITR-6
In addition to ROC filings, every private limited company must undergo a Statutory Audit by an independent qualified auditor to evaluate the financial position and internal controls. Once audited, the company must file its Income Tax Return in form ITR-6.
- Applicability: All incorporated companies, regardless of transactions or profitability.
- Due Date: Usually by 31st October of the assessment year (subject to extensions).
- Penalty: Late filing can attract penalties under section 234F up to ₹10,000.
Frequently Asked Questions
What is an Annual General Meeting (AGM)?
A mandatory yearly meeting of shareholders to discuss financial performance and elect directors. It must be held during business hours (9am-6pm) at the registered office or within the same city.
What happens if the AGM is not conducted?
Failure to hold an AGM without an extension can result in the Tribunal directing the company to call one. Defaulting officers face fines up to ₹1,00,000 plus ₹5,000 per day during the continuing default.
What is the cost of filing annual returns?
The cost includes government MCA fees (which depend on nominal capital), potential late fees (if delayed), and professional consultant fees for audit and certification.
Quick Docket
- DIR-3 KYC 30th Sept
- ADT-1 15 days post AGM
- AOC-4 30 days post AGM
- MGT-7/7A 60 days post AGM
Max Penalty
₹100 per day for AOC-4 & MGT-7. Ignorance leads to strike-off.