What is the Annual Compliance for Private Company?

A Private Company is a unique entity that needs to stay active by filing regular reports with the MCA. Each financial year, companies are required to file an annual return and audited financial statements with the MCA, regardless of turnover or transaction volume. Failure to comply with these annual compliances can lead to the company's name being removed from the RoC register and its directors being disqualified. The MCA has taken proactive measures to address non-compliance issues and ensure that companies meet their filing obligations. The due dates for annual filing depend on the date of the Annual General Meeting, and both forms report the activities and financial data for the relevant financial year.

Benefits of Annual Compliance

Raising Company’s Credibility

In order to maintain credibility, it is essential for businesses to comply with the law. The annual return filing date for a company can be found on the MCA portal's Master Data. Compliance is a major factor in measuring the credibility of an organization, as it is necessary for government tenders, loan approvals, and other similar purposes.

Attract Investors

When a company wants to attract investors, those investors usually want to see all the financial records and data before they make up their minds. They can get that info by contacting the company directly or by checking the MCA portal. The investors prefer to deal with companies that have a good history of following the rules and meeting their annual compliance obligations.

Maintain Active Status and avoid penalties

If a company continuously fails to file its annual return, it will be categorized as default and will incur heavy penalties. The company may also be declared defunct or removed from the RoC register, and the directors may be disqualified and barred from further appointments. Since July 2018, a penalty of ₹100 per day will be charged for each day of delay until the date of filing.

Documents required for Annual Filing of company

Incorporation Document

PAN Card, Certificate of Incorporation and MoA – AoA of Private Company

Audited Financial Statements

Financial Statements must be audited by independent auditor

Audit Report & Board Report

Independent auditor’s report and Board report must be provided

DSC of Director

Valid and active DSC of one of the directors must be provided

Due Dates of compliance for Private Limited Company

AOC - 4 (Financial Statement)

Within 30 days from the date of AGM

MGT - 7 (Annual Return)

Within 60 days from the date of AGM

Fulfil compliance in 3 Easy Steps

1. Answer Quick Questions

Spare less than 10 minutes to fill our online Questionnaire
Upload required Documents
Make quick payment through our secured gateways

2. Experts at LW are here to help

Assigned Relationship Manager
Drafting of required documents for filing
Preparation of Forms to be filed
Online Filing of Financial Statement and other documents
Online Filing of Annual Return of company

3. Annual Compliance is done!

All it takes is 5 working days*

_{*Subject to Government processing time}

Process of Annual filing of company

Day 1 - Collection

Discussion and collection of basic Information
Provide Required Documents
Decide the due dates of ROC filing for Pvt. Ltd. Company

Day 2-4 - Preparation

Drafting necessary documents
Attachment of supporting documents

Day 5 onwards - Filing

Filing of AOC – 4 (Financial Statements)
Filing of MGT – 7 (Annual Return)

Explore Annual Compliance for Private Limited Company

Frequently Asked Questions

Yes, RoC compliance for Private Limited Companies are necessary for every registered company. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement. The annual compliance is due after the AGM of the company since its first financial year.

Since July 2018, companies failing to follow the statutory compliance for Private Limited will be charged ₹100 for each day of a delay till the actual date of filing. There is no ceiling limit to an additional fee. For continuous failure, penalty apart from the additional Government fee can be levied on both – company and directors, including the imprisonment.

Audited financial statements are necessary for every company since its incorporation. The company must file the audited statements only. Also, non-audit of financial statement is not an excuse to delay the annual filing.

A company can opt to appoint a statutory auditor either for a period of five consecutive years or till the conclusion of next AGM. Therefore, an appointment of the statutory auditor cannot be considered as a part of annual compliance.

As per Companies Act, 2013 it is mandatory to submit the signed Director Report for every financial year with MCA by filing an Annual return of the company. The Director Report is considered as an attachment for the form MGT-7.

Form ADT-1 is required to be filed for appointment or replacement of Statutory Auditor.

MGT-9 is an attachment to the company’s director report which is an extract of MGT-7 and addresses the following : 1. Registration and other details like CIN, date of incorporation, companies name and address of a registered office 2. Principle business activity of the company 3. Of holding, subsidiary, and associate companies 4. Shareholding pattern 5. Indebtedness of the company 6. Remuneration of managing directors, directors and/or manager, and key managerial personnel. 7. Penalties/ Punishment/ Compounding of offense.

Such intimation can be made through filing MGT-7 by the company.

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Annual Compliance for Private Company