Overview of ROC Annual Compliances

Compliance means followance of the rules and regulations. A Private Limited company needs to comply with the Companies Act, 2013 and follow it in order to carry out different functions for ex. the appointment of directors, board meetings, and shareholder meetings. ROC annual compliance for Private Limited Company is mandatory for every private company which is registered, i.e. whether it is a small or big company, it has to comply with the rules. The mandatory compliances that require preparation of the annual returns and paying income taxes are also needed for all companies. 

ROC Annual Compliances for Private Limited Companies

Private Limited Companies in India are required to maintain various ROC annual compliances, which have evolved over time. These compliances for pvt limited companies are:
 

ROC Annual Compliances for Pvt Ltd Companies in Detail

The annual ROC compliances after online company registration in India are:

1) Statutory Audit Compliances:

• Appointment of statutory auditor.
• Finalization of annual accounts.

2) Annual ROC Filings:

Private Limited Companies must file:

• Form MGT-7 (Annual returns) within 60 days of AGM.
• Form AOC-4 (Financial statements) within 30 days with balance sheet, profit and loss account, and Director report.

3) Annual General Meeting (AGM):

• Held within six months from the financial year's closing.
• Approves financial statements, declares dividends, appoints auditors, determines directors' remuneration.
• Held during business hours, not on a public holiday, at the company's registered office or the respective city, village, or town.

4) Board Meetings:

• First meeting within 30 days of incorporation.
• Quarterly meetings required, with a minimum attendance of 2 directors or 1/3rd of total directors.
• Minutes to be recorded and maintained at the registered office.
• Notice must be sent seven days in advance.

5) Directors Report:

• Directors must disclose directorship in other companies annually, through the written declaration to the company.

6) Income Tax Compliances:

• Quarterly advance tax payment.
• Annual Income Tax returns filing.
• Tax audit mandatory if turnover exceeds Rs. 1 crore, with filing of Tax Audit report.

7) Other Event-based Compliances:

• Change in authorised or paid-up capital.
• Allotment or transfer of shares.
• Providing loans to other companies or directors.
• Appointment of managing or whole-time Director and their payment.
• Opening, closing, or change in bank account signatories.
• Appointment or change of statutory auditors.

8) Filing Requirements:

• Different forms need to be filed with the registrar within specified periods.
• Missing deadlines may lead to additional fees or penalties.

Consequences of Non-Compliance with ROC Annual Compliance

In case on non-compliance with annual ROC compliances:

• Company and defaulting members punishable with fine
• Fine applicable for duration of default continuation

Benefits of ROC Annual Compliance Services in India

Following are the benefits of complying with Annual ROC Compliance:

1) Budgeting: 

• Efficiently controls income and expenditure.
• Monitors managerial policies and goals.

2) Evaluating Business Performance: 

• Measures key indicators like net profit and sales growth.

3) Managing Cash Flow: 

• Tracks incoming money to project patterns.
• Facilitates timely payments to employees and suppliers.

4) Financial Reporting to Stakeholders: 

• Provides insight into financial health.
• Highlights solvency, creditworthiness, and liquidity.

5) Mandatory Compliance: 

• Registrar of Companies requires income tax records.
• Non-compliance may lead to additional taxes or fines.

Importance of ROC Annual Compliance Services

Annual ROC compliance services for private limited company registration in India ensures legal requirements to protect health, safety, and welfare. It includes obtaining a business licence, paying taxes, and adhering to regulations.

1) Compliance Demands Grow With Your Business

• Challenges increase with more hiring, firing, and regulatory obligations
• Failure to comply can lead to fines, penalties, and legal issues

2) Reduced Legal Issues

• Compliance reduces the risk of fines, lawsuits, and business shutdowns
• Failure to comply can weaken legal defences in cases

3) Improved Operations and Safety

• Rules on discrimination and safety can enhance workplace and productivity
• Following guidelines prevents injuries, fires, and disruptions

4) Better Public Relations

• Demonstrating compliance in marketing materials and on the website
• Emphasising commitment to equality and safety can improve public image

5) Increased Retention

• Compliance contributes to a fair, professional, and safe work environment
• Strong policies and mechanisms for dealing with infractions can retain employees

Process of Filing ROC Annual Compliance Services

The procedure for ROC Annual compliance filing involves the following steps:

Step 1. Meetings of Board of Directors:

• Hold the first meeting in time period of 30 days of incorporation.
• Conduct 4 meetings every quarter with max. gap of 120 days between 2 meetings.

Step 2. Preparation of Minutes of Proceedings of Meeting:

• Maintain and file meeting minutes permanently at the registered office.

Step 3. Issuance of Share Certificates:

• Issue share certificates to memorandum subscribers within 60 days of incorporation.

Step 4. Filing of Disclosures of Directors’ Interests:

• Ensure all directors make disclosures about interests in other businesses during the first board meeting.

Step 5. Filing Declarations of Commencement of Business:

• Submit Form INC 20A within 180 days of incorporation.

Step 6. Annual General Meetings:

• Conducting 1st AGM inside nine months from the end of the first financial year.
• Later AGMs should be done inside six months from the end of the financial year.

Step 7. Annual Compliance Returns:

• File returns with RoC within 60 days of AGM conclusion.

Step 8. Quarterly Compliance:

• Conduct a minimum of four board meetings annually, one per quarter.

Step 9. Statutory Registrations:

• Complete GST Registration, EPF Registration (Provident Fund), ESI Registration, IEC registration, etc., as required.

Why Choose Whizseed for ROC Annual Compliances of Private Limited Company in India?

ROC compliances come under the MCA or the Ministry of Corporate Affairs as its supervisory authority, and the ROC offices across India are assigned with the task of its enforcement. ROC compliance includes preparation of these fresh forms and documents, annual returns as well as other related protocols. Some of these include maintaining statutory registers, conducting board meetings and more. 

ROC compliance helps to ensure clean and well-managed business that involves transparency, accountability and adherence to law. Not only may a company's failure to meet ROC requirements be punished by penalties, fines or even the de-registrations but also a lot of negative implications for the business itself.