How to keep Company Status Active?
In our article today, we will talk about the Annual Compliances for a Private Limited Company in India-
To maintain active status, every Company requires to follow a few periodic compliances with the Ministry of Corporate Affairs (“MCA“) and Registrar of Companies (“RoC“).
Private limited companies perform various activities, including the sale, purchase, business appointment, removal, remuneration, the retirement of the Company’s directors, and other business aspects such as conducting board meetings and shareholder meetings. The annual compliance due dates of a private limited company depend upon the date of its annual general meeting.
If any company fails to meet a private limited company’s annual compliances, it may lead to the removal of the Company’s name from the RoC and permanent disqualification of the Company’s directors.
Benefits of observing proper annual compliances by a private limited company-
Maintain active status:
Annual compliances for a private limited company are essential to maintain the active status of the Company, and it helps to avoid the legal penalties and consequences. Moreover, if the Company does not comply with the annual compliances, it gets declared as ‘in-operational’ and can be removed from the RoC. The directors of such a Company get permanently removed from all the existing and future businesses.
Attract investors:
Before investing in a company, the investors check the regularity of filing and annual returns on the MCA portal. Thus, financial records and yearly compliances are the focus points for the investors, which need to be taken care of by the private limited companies to obtain investors.
Greater credibility:
The regularity in filing annual compliances increases your business’s credibility, attracting customers, helping obtain government tenders and attaining loan approvals.
Documents required for the Annual compliances of a Private limited company
The documents requirements for annual compliances for a private limited company are:
- Signed and audited financials of the Company
- Audit report
- Board Report
- PAN card, ID and Residence Proof of directors
- Details of the shareholder’s meeting conducted during the year
- Details of the board meeting conducted during the year
- Overall Compliance Status of the Company
- Auditor’s appointment documents
- DSC (digital signature certificate) of directors
KEY ANNUAL COMPLIANCES
If you are looking for affordable and efficient Annual Compliances services for a Private Limited Company, please feel free to reach out to us.
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