Running a private limited company comes with its fair share of legal responsibilities. From annual filings and board meetings to tax obligations and secretarial compliance, staying on top of regulations under the Companies Act, 2013 is crucial. However, compliance doesn’t have to be a headache.

At Compliance Monk, we make the process seamless by offering expert guidance tailored to your business needs. Whether you’re a startup navigating its first compliance cycle or an established firm looking for a hassle-free way to manage filings, we ensure you meet all regulatory requirements without unnecessary stress.

Understanding Compliance for Private Limited Companies

What is Company Compliance?

Compliance refers to adhering to statutory requirements imposed by regulatory bodies like the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC). A private limited company must meet various legal obligations, from filing annual returns to holding shareholder meetings, ensuring financial transparency and accountability.

Types of Compliance for Private Limited Companies

Company compliance is broadly categorized into:

1. Annual Compliance – Routine filings and disclosures such as financial statements and tax returns.
2. Event-Based Compliance – Occasional filings triggered by events like changes in shareholding, directorship, or capital structure.
3. Other Regulatory Compliance – Tax-related filings, employee benefit filings (PF, ESIC), and industry-specific legal obligations.

Annual Compliance for Private Limited Companies

Annual compliance ensures the company remains legally operational and avoids penalties. Key requirements include:

1. Declaration of Business Commencement (INC-20A)

• Mandatory for companies with share capital, filed within 180 days of incorporation.
• Non-compliance attracts a ₹50,000 penalty for the company and ₹1,000 per day for directors.

2. Appointment of Auditor (ADT-1)

• First auditor must be appointed within 30 days of incorporation.
• The appointment must be confirmed at the first Annual General Meeting (AGM), and Form ADT-1 must be filed with ROC within 15 days.

3. Board Meetings

• First Board Meeting must be held within 30 days of incorporation.
• At least four meetings are required annually, ensuring not more than 120 days between two meetings.

4. Annual General Meeting (AGM)

• The first AGM must be held within 9 months from the end of the first financial year.
• Subsequent AGMs should be conducted within 6 months of the financial year-end, ensuring a gap of no more than 15 months between two AGMs.

5. Annual ROC Filings

Private Limited Companies must file the following mandatory forms with the ROC:

Form	Purpose	Due Date
AOC-4	Filing of Financial Statements	Within 30 days of AGM
MGT-7	Annual Returns	Within 60 days of AGM
DIR-3 KYC	Director KYC Submission	By September 30th each year
DPT-3	Return of Deposits	By June 30th each year
MGT-14	Filing of Board Resolutions	Within 30 days of passing resolution

6. Maintenance of Statutory Registers & Financial Records

Companies must maintain statutory registers, including:
✔ Shareholder details
✔ Minutes of meetings
✔ Financial records
✔ Director disclosures

Failing to maintain these records can lead to severe legal consequences and penalties.

Event-Based Compliance for Private Limited Companies

Apart from annual compliance, companies must also file returns when specific corporate events occur, such as:

• Change in Share Capital – Any increase or decrease in authorized/purchased shares.
• Allotment or Transfer of Shares – Issuing new shares or transferring existing ones.
• Change in Directors – Appointment, resignation, or change in designation.
• Bank Account Updates – Opening, closing, or changing bank signatories.
• Loans to Directors or Other Companies – Must be properly documented and compliant with Company Act provisions.

Failure to file these event-based compliances within the stipulated time can attract late fees and penalties.

Tax & Non-ROC Compliance

Companies must also comply with non-ROC regulatory obligations, such as:

✔ GST Filings – Monthly, quarterly, or annual filings depending on GST registration type.
✔ Income Tax Returns – Filed annually, regardless of profit or loss.
✔ TDS & TCS Filings – Quarterly tax deduction and collection filings.
✔ Provident Fund (PF) & ESIC Returns – Compliance for employee benefits.
✔ Professional Tax (PT) Filings – Applicable in certain states.

Penalties for Non-Compliance

Ignoring compliance requirements can be costly. Here’s what non-compliance can lead to:

❌ Late Filing Fees – ROC filings not done on time attract ₹100 per day of delay.
❌ Company Strike-Off – Continuous non-filing can lead to the company being struck off by ROC.
❌ Director Disqualification – Directors may be banned for 5 years from holding any directorship in other companies.
❌ Financial Penalties – Can range from ₹50,000 to ₹5,00,000, depending on the nature of default.

Staying compliant isn’t just about avoiding penalties—it’s about building credibility and securing your company’s future.

How Compliance Monk Simplifies Your Compliance Process?

At Compliance Monk, we take the complexity out of compliance. Here’s how we help:

✅ Compliance Tracking & Reminders

Never miss a deadline with our proactive tracking system that alerts you before due dates.

✅ Expert-Led ROC & MCA Filings

We handle all annual and event-based filings, ensuring accuracy and timely submission.

✅ Dedicated Compliance Manager

A single point of contact for all your compliance queries, guiding you every step of the way.

✅ Secretarial & Accounting Support

✔ Bookkeeping & Financial Reports
✔ Board Meeting Minutes & Documentation
✔ Annual Reports & Director Disclosures

✅ Income Tax & GST Return Filings

✔ Income Tax Filing – Ensure 100% compliance with tax laws.
✔ GST Returns – Hassle-free monthly, quarterly, and annual GST compliance.

✅ Custom Solutions for Startups & Growing Businesses

We provide tailored compliance solutions based on your company’s size, industry, and specific requirements.

Contact us today and let’s make compliance effortless!

Frequently Asked Questions (FAQs)

1. What is compliance for a private limited company?

Compliance refers to adhering to the statutory and regulatory requirements set by government authorities such as the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC). It includes filing annual returns, maintaining financial records, conducting board meetings, and ensuring tax compliance.

2. Why is compliance necessary for private limited companies?

Compliance ensures that a company operates legally, avoids penalties, maintains credibility, and stays in good standing with regulatory authorities. It also helps in securing loans, attracting investors, and ensuring smooth business operations.

3. What are the types of compliance applicable to private limited companies?

Private limited companies must comply with:

• Annual Compliance – Regular filings such as financial statements and annual returns.
• Event-Based Compliance – Filings triggered by events like changes in directors, shareholding, or capital structure.
• Non-ROC Compliance – Tax-related filings such as GST returns, TDS filings, and income tax returns.

4. What are the mandatory annual compliances for a private limited company?

• Filing AOC-4 for financial statements within 30 days of the AGM.
• Filing MGT-7 for annual returns within 60 days of the AGM.
• Conducting at least four board meetings annually.
• Holding an Annual General Meeting (AGM) within six months of the financial year-end.
• Filing DIR-3 KYC for directors by September 30th.

5. What happens if a private limited company fails to comply with ROC regulations?

Non-compliance can lead to:

• Late fees and penalties starting from ₹100 per day.
• Company strike-off by the ROC.
• Director disqualification for up to five years.
• Financial penalties ranging from ₹50,000 to ₹5,00,000.

6. What are event-based compliances?

Event-based compliances must be met when specific corporate actions occur, such as:

• Change in authorized or paid-up capital.
• Allotment or transfer of shares.
• Appointment or resignation of directors.
• Opening or closing of a bank account.
• Loan transactions involving directors or other companies.

7. What tax-related compliances must private limited companies follow?

• Filing of income tax returns annually, regardless of profit or loss.
• Quarterly TDS and GST return filings.
• Professional tax, provident fund (PF), and ESIC returns, if applicable.

8. What is the penalty for late filing of annual returns?

The penalty for late filing of AOC-4 and MGT-7 is ₹100 per day. Additional fines may be imposed based on the duration of non-compliance.

9. What is the process of obtaining a Commencement of Business Certificate?

• File INC-20A within 180 days of incorporation.
• The company must verify its registered capital before commencing operations.
• Non-compliance attracts a ₹50,000 fine for the company and ₹1,000 per day for directors.

10. How can I ensure my company stays compliant?

• Maintain proper financial records and statutory registers.
• File annual and event-based compliances on time.
• Use Compliance Monk’s compliance tracking system to receive deadline reminders.