Manage Your Business & Various Compliances
When you start or engage in a business, there are many forms of compliance that your company and its employees must uphold. “Compliance” refers to sticking to the rules. Meaning, you need to comply with relevant legislation, as well as any internal or external standards such as Income Tax Law, Goods & Service Tax Law, Company Law, Foreign Direct Investment, etc and many others as depending upon the Industry you are working into.
Not sticking to compliance can lead to damage done towards both the company and it’s customers. You would certainly want your employees to work in a way that protects your clients’ data from being stolen by a hacker.
In this evolving business era, it is essential to control your business with an effective system on board. TAXAJ is a futuristic SaaS-based compliance model that enables companies to track, govern and take care of the regulatory requirements, performance evaluation and internal operations thereby mitigating future risks.
A startup running as a private limited company has to follow numbers of compliance as laid down by various statutes and other regulatory bodies. These include but are not limited to the periodic filing of tax and other returns, holding the board and other meetings, maintaining statutory books and accounts etc.
Few Major Ways to Manage Your Business
Comply with all your MCA- ROC Corporate Filings with TAXAJ.
Comply with all your Income Tax Filings & Compliances with TAXAJ.
Comply with all your Tax & Business Filings with TAXAJ.
Comply with all your Legal Support & Services with TAXAJ.
Comply with all your Closure requirements legally with TAXAJ.
Comply with all your MCA- ROC Corporate Filings with TAXAJ.
Goods & Service Tax
Comply with all your Goods & Service Tax Compliances & Filings with TAXAJ.
Tax Deducted at Source
Comply with all your TDS & TCS Compliances with TAXAJ.
Have a reputed business address for your business with TAXAJ
Comply with all your Accounting & Finance Compliances with TAXAJ.
Annual Compliances for Private Limited Company
The term compliance describes the ability to comply with orders, set of rules, or requests. A private limited company that has been incorporated in India must ensure the compliances concerning the Companies Act, 2013 are adequately met.
The Companies Act, 2013 regulates the appointment, qualification, remuneration, and retirement of the Company's Directors and other aspects such as conducting board meetings and shareholder meetings.
The RoC compliance for registered Private Limited Companies is necessary. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement.
All companies registered in India like a private limited company, one person company, limited company, and section 8 company need to maintain the annual compliances like annual returns and income tax return each year. Though Company Registration happens to be the most popular form of starting a business, various compliances need to be followed once the business is Incorporated.
Managing the business's everyday operations while complying with the difficult corporate laws can be a task for the entrepreneur. So, it is always better to take the professionals' help and understand the legal requirement to ensure timely fulfillment of these compliances to waive off the penalties or fines.
Here, we will look at some of the Common compliances that a private limited company has to ensure mandatorily.
What are compliances to be maintained by the Private Limited Company?
The compliance requirement for Private Limited Company has changed drastically over the years. Following is the summary of the private limited company compliance due dates in 2021.
|Commencement of business ( within 180 days)||For companies registered in India after November 2019, having a share capital, it is necessary to obtain a commencement if business certificate before commencing any business or exercising the borrowing powers. The commencement of business certificate must be obtained within 180 days of incorporating a Company.|
In case the individual fails to obtain this certificate, there is a penalty of Rs. 50,000 for the company Rs. 1000 per day for the directors for each day of default.
|Auditor Appointment (Within 30 days)||All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. If the company fails to appoint an auditor, the company won't be allowed to commence business. Also, there is a penalty of Rs. 300 per month.|
|Income Tax Return||Income tax returns need to be filed on or before 30th September 2021 for the Financial year 2020-21.|
|MCA Form AOC-4||The registered private limited companies must file MCA Form AOC-4 on or before 30th November 2021 for the FY2020-21. Failure to file AOC-4 will attract a penalty of Rs. 200 per day of default or delay.|
|MCA Form MGT-7||It is necessary to file MCA form MGT-7 on or before 31st December 2021 for FY2020-21. Failure to file MGT-7 attracts a penalty of Rs.200 Per day of default or delay.|
|DIN eKYC||All the directors of the company must be filed for the DIN eKYC or DIR-3 eKYC. In DIR-3 eKYC, the Director must provide a unique personal mobile number and a personal email address. There's a penalty of Rs. 5000 in case of failure to file DIN eKYC.|
|Hold Annual General Meeting||For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the Financial year.|
|Director's report||Preparation of the Directors report will be done with all the information required under Section 134.|
- Payment of periodic dues (GST Liability, TDS & TCS payment)
- B. Non-Registrar compliance of periodic returns – (Monthly, quarterly, annual returns- GST, TDS, etc)
- Monthly/Quarterly GST Returns
- Quarterly TDS Returns
- Assessment of advance tax liability and payment of advance tax periodically
- Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)
- Filing of Tax Audit Report
- Regulatory Assessment of business under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Competition Act, Factory Act etc.)
Often entrepreneurs get overwhelmed by the number of compliances and in absence of professional guidance end up paying interest and penalties.