Annual Company Compliance
The Companies Act 2013, lays down the Annual Legal compliance that every company, including a newly registered company, is required to follow unfailingly. These annual compliance are applicable for every Indian Company , Company Compliance act as regular updates to the government that the company is conducting its business in accordance with the Indian laws. The compliance requirements are complex with each falling on different due dates and failing to meet them in a timely manner can greatly impact a company.
"CogNezic Taxations"
Having a expert team of Professionals, Company secretaries & Chartered Accountants who can help and take care of all the Legal Compliance. The following Compliance are the mandatory to perform in every Financial Year :
Board Meeting of Directors & Preparation of Minutes
According to the section 173(1) of the Companies Act, 2013 prescribes that every company shall hold the first meeting of the Board of Directors within 30 days of the date of its incorporation and needs to file the minutes of the meeting.
thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than 120 days shall intervene between two consecutive meetings of the Board.
INC 20 A
Before commencing any business or exercising any borrowing powers, every company required to file commencement of business. Form INC-20A is required to be filed within 180 days of the date of incorporation of the Company.
Share Certificate :
A share certificate is a certificate issued by a company certifying that certain person is the registered owner of shares in the company. It can be done within 60 days of incorporation.
Disclosure of Interest by Directors & Non-Disqualification by Directors
In the first Board Meeting, all the Directors are required to give disclosure about their interest in other business entity.
Annual General Meeting (AGM)
A company shall conduct one AGM every Financial Year The first Annual General Meeting shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.
For Example : If a Company is incorporated on or before 31st December 2019, the First Annual General Meeting must be conducted within 9 months from the date of closing of 1st Financial Year ( 31.12.2019 - 31.03.2020), that is, by 31st December 2020.
If a Company is incorporated on or after 1st January 2020, First Annual General Meeting to be conducted within 15 months, i.e., by 31st December 2021.
Submitting MCA Form AOC-4
Private limited companies must submit form AOC 4 to the MCA to adhere to the annual compliance. This has to be completed on or before 30 days from the date of AGM.
Penalty for not following this annual compliance
Failure to file this form will result in a penalty of ₹100 per day of default.
Filing MCA Form MGT-7
As a part of private limited company compliance, it is compulsory to file the MCA form MGT-7 on or before 60 days from the date of AGM.
Penalty for not following this annual compliance
Defaulters should pay a penalty of ₹100 for every day of default throughout the period.
Filing for DIN KYC
As per the ROC compliance, every private limited company should have a director. To perform all the tasks without difficulty, a Director Identification Number (DIN) is required. The director of the company should file DIN eKYC within the speculated period.
Penalty for not following this annual compliance
In case of any default or delay the director should pay a penalty of ₹5000.