Company Compliance Checklist in India
A company is a separate legal entity and represents association of people with a specific objective. A Company registration is easy but there are a number of compliances which are compulsory to follow.
The compliances vary for different types of company. This article will deal with the checklist of compliance requirements needed for a:
- Private company
- Listed Public company
- Unlisted Public company
Compliance Requirement for Private Company
The list of compliance requirements for a private company is:
- After incorporation of a company, the first board meeting should be held in 30 days.
- There should be a gap of more than 120 days between two meetings and a total of four board meetings in a year. However, there should be a minimum gap of 90 days between two board meetings for a small company.
- First annual general meeting should be held within nine months from closing of the financial year.
- Annual General meeting should be held within six months from closing of the financial year and there should not be more than fifteen months gap between two Annual General meetings.
- Director in first board meeting should disclose interest in form MBP-1 and declaration in DIR-8.
- First auditor should be appointed within thirty days of incorporation.
- Auditor should be appointed for period of five years.
- Auditor should file Form ADT-1 within fifteen days of annual general meeting .
- Financial statements should be filed in form AOC-4 within thirty days of annual general meeting.
- Annual return should be filed in form MGT-7from 60 days of incorporation.
- Statutory audits should be done by charted accountants.
- Income tax returns should be filed before 30th September every year.
- Every company must file an e-Form MSME-I and e-Form DPT-3.
Compliance Requirement for Listed Public Company
The list of compliance requirements for a listed public company is:
- Annual general meeting should be held within 30 days of date of incorporation.
- Financial statements like balance sheet, cash flow statement, auditor’s report, financial statement in XBRL, director’s report should be filed within 30 days of holding annual general meeting.
- Annual returns should be filed within 60 days of incorporation of company under file MGT-7.
- Financial and Director’s Report should be filed under Form MGT-14 within thirty days of board meeting.
- Income Tax returns filed under Form ITR-6 before the tax department on or before 30th September of the same financial year.
- Secretarial Audit report and board report filed before appointment/reappointment of secretarial auditor only in the case when total paid up capital is above Rs. 50 crore or annual turnover is above Rs. 250 crore.
Compliance Requirement for Unlisted Public Company
The list of compliance requirements for an unlisted public company is:
These are the necessary legal compliance requirements of a company. It is essential as well as beneficial to follow all the compliances as it is the duty of the company towards its stakeholders and community.
- Minimum four board meetings should be held in a year.
- Cost auditor should be appointed within thirty days of board meeting or within 180 days of financial year, whichever is earlier.
- Casual vacancy to be filled within thirty days of board meeting.
- Return of deposits should be filed under Form DPT-3 to Registrar of companies before 30th June of every year.
- Appointment of CEO/CFO/CS should be done under Form MGT-14 and Form DIR-12 within 30 days after annual general meeting.
- Annual general meeting to be held within 9 months of the Financial year.
- Special resolution to be acted upon within 30 days of passing the resolution.
- The gap between formation of CSR committee and four board meetings should not be less than 120 days.
- Director’s disclosure should be filed under Form MBP-1 after his/her appointment.
Also, No compliance function can lead to reputational damage which can contribute into loss made by companies. Lastly, unfulfillment of the above conditions would lead to penalty and even punishment.
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