Private Ltd. company is required to follow mandatory compliance including Annual Return filing, Director's report, KYC, conducting board meetings, Maintenance of Statutory Register etc.
MANDATORY COMPLIANCES & PENALTY
(Applicable for all companies under companies act, 2013)
Compliance
1. Issue of Share Certificates
The company must issue the Share Certificates to its shareholders within 2 months of its Incorporation or new allotment.
Timeline
Penalty for Non-Compliance
-
Company: Fine from Rs. 25,000 which may extend to Rs.500,000.
-
Directors: Fine from Rs. 10,000 which may extend to Rs. 100,000.
2. Board Meeting
-
1st Board Meeting - within 30 days of incorporation
-
One Board Meeting to be held in each quarter
-
Notice, Minutes of meeting is mandatory
-
Attendance Register to be maintained.
-
Company: Fine from Rs. 25,000 and
-
Director in default: liable to a penalty of Rs. 5,000.
-
Non-compliance in Issue of Notice of Meeting, Director shall be liable to a penalty of Rs. 25,000.
4. Statutory Registers
Mandatory Registers to be maintained and updated from time to time
-
Penalty: Rs. 50,000 which may extend to Rs. 3,00,000 and
-
Further fine: Rs. 1,000 day for which the default continues.
5. Annual Return Filing - ROC
-
Every company is required to file its Annual Return (MGT-7) with the ROC within 60 days of AGM.
-
The Financial Statement (AOC-4) also to be filed within 30 days of AGM.
-
The Auditor Appointment (ADT-1) to be filled within 15 days from the AGM.
​
-
Additional ROC Filing Fees: Upto 12 times of normal filing fees for each Form separately i.e. MGT-7, AOC-4 & ADT-1 (Depending on the Delay time)
+
-
Company: Shall be punishable with fine of Rs. 50,000 which shall extend to Rs. 5,00,000 and
-
Director in default: shall be punishable with imprisonment upto 6 Months or with Minimum Fine of Rs. 50,000 which may extend to Rs 5,00,000 or both.
3. Annual General Meeting (AGM)
-
AGM to be held every year
-
Minutes of AGM to be prepared
-
Notice of AGM should be given in advance.
-
Attendance Register to be maintained.
Default in holding AGM:
-
Company and Directors: in default shall be punishable with fine which may extend to Rs. 1,00,000 and
-
Rs. 5,000 for every day of delay
​
Minutes Book Maintenance:
-
Company: Penalty upto Rs. 25,000
-
Directors in default: shall be liable to a penalty of Rs. 5,000.