Annual Compliance – a Summary
All establishments in India are directed by the Ministry of Corporate Affairs (MCA) beneath the Companies Act, 2013. As per the act, each company, after incorporation, has to achieve many compulsory lawful responsibilities. These compliance necessities are intricate, with each falling on diverse due dates, and failing to meet them in an appropriate way is probable to harmfully influence a company (plus heavy penalties of up to Rs. 1 lakh per annum or the businesses and their directors getting barred).
You must retain a public record that contains of the company’s data, known as the annual returns of the company, which will be accessible in the Companies Register. Companies are needed to update the yearly returns on a regular basis.
Filing Annual Compliance – a Thorough Process
What You Must Know
Several companies let their compliance requirements load. Staying well-organized from the early days will be enormously helpful when considering an investment or a bank loan, as both would need you to ensure that your business is accommodating with the Registrar of Companies (RoC’s) necessities.
Hiring a company secretary on call all through the year is crucial in warranting that your business is run in agreement with the laws in place. Our team would help you stay abreast with all the modifications made by the RoC during the course of the year.
FAQ For Retainership Registered Company
Yes, each business regardless of the number of transactions has to obtain the compliance filings done. Yet, the procedure will be much meeker.
A private limited company can have a least of 2 directors and utmost 15. In case, there are more than 15 Directors employed, the business has to file MGT-14 form and offer the SRN.
Balance sheet and Annual Returns are required to be filed once every year. Additionally, companies have to file Form 3 in case there is a Return of Allotment, Form No INC-22. If there is an alteration in the Registered Office; Form No DIR-12 for Change of Directors; etc.
The AGM has to be carried out at the registered office of the company or at any other location within the city, town or village any place where the registered office is located. The Meeting should occur during the business hours (9 am-6 pm) on any day that is not a national holiday started by the Central Government
Yes, the Board of Directors can employ an individual for alternate directors. But he/she should not have been heading a parallel post in any other company.
As per Section 134 of the Companies Act 2013 and Rules made thereunder, the company shall be indictable with a penalty between Rs. 50,000 and Rs. 25,00,000/- and each officer of the company who is in nonappearance shall be carrying a punishment of imprisonment for a period which may extend to 3 years or with a fine of minimum Rs. 50,000 and maximum Rs. 5,00,000/- or with both.
As per the Companies Act, Board Meetings can be carried out even outside of India. If essential, Directors can join over video conferencing or other audiovisual essentials, on condition that there is a preceding notice. The minutes of proceedings should be duly recorded. Though, there are definite matters delimited by the Act to be organized through a Video Conference Meeting.
A Director has to be actually present to join a minimum of one Board meeting of the company. In the nonattendance of the original director, an alternate director may be allotted to attend the meeting. If a director absents himself from all the Board Meetings of the Company, he has to be removed from the Office of Directorship of the company.
The Companies Act 2013, permits one single person to be the managing director in up to 2 companies at the same time.