There has been a rise in the number of Startups Registration thanks to the attractive tax holidays provided by the Government in the past few years. However, Startups registered as Private limited Companies have a lot of compliance burden.
Following is the list of most of the Compliances which a Start-up is needed to follow, non – compliance of the same may lead to penalties and disruption of business.
Note: The below checklist is applicable for private limited companies, particularly Small Companies with paid up capital of upto Rs. 50Lakh or having annual turnover in last year below Rs. 2Cr.
The compliances can be categorized as below:
1) Registrar (MCA) related Compliance
2) Others
Registrar related Compliance
| Appointment of Auditor (E-form ADT-1) | Tax Rate (per cent)First Statutory Auditor has to be appointed within 30 days of incorporation in first board meetingSubsequent auditors will be appointed for 5 years in AGM. |
Form
ADT-1 is filed for a 5-year appointment. After that every year in AGM, |
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| Holding Board Meeting | First meeting within 30 days of incorporation
Minimum 2 meetings, one in each half calendar year. |
Minimum gap of 90 days is required between 2 meetings (ignore if more than 2 meetings held during the year) |
| Holding Annual General Meeting(AGM) | One AGM | Maximum gap of 15 months between 2 AGMs |
| E- Forms Filing Requirements | E-form: MGT-7 File Annual Return within 60 days of holding of AGM for the period 1st April to 31st March. |
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| Form MBP- 1 Every Director of the Company in First Meeting of the Board of Director in each Financial Year needs to disclose his interest in other entities by filing the form |
Fresh MBP-1 needs to be filed, whenever there is change in his interest from the earlier given MBP-1 |
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| Form DIR – 8 Every Director of the Company in each Financial Year has to file with the Company disclosure of non-disqualification |
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| Directors’ Report | Directors’ Report is to be filed covering all the information required for Small Company under Section 134. |
It should be signed by the “Chairperson” authorized by the Board, where he is not so authorized by at least 2 Directors. |
| Statutory registers and books of accounts | 1) Statutory Registers 2) Minutes Book* Board Meeting Minutes Book* General Meeting Minutes Book (i.e. AGM, EGM, Postal Ballot, Creditors Meetings, Debenture holders Meetings) 3. Books of Accounts/Financial Statements(section 44aa) 4)Register of Directors Attendance at Board/Committee Meetings. |
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| Circulation of Financial Statement & other relevant Docs |
Company will send to the members of the Company approved Financial Statement, Directors’ Report and Auditor’s’ Report at least 21 clear days before the Annual General Meeting. |
Note: Above mentioned Compliances are mandatory yearly compliances for the Small Private Limited Company. Except above compliances, there may be event-based compliances for the Small Company.
Other Compliances
- Payment of periodic dues (GST Liability, TDS & TCS payment)
- Monthly/Quarterly GST Returns
- Quarterly TDS Returns
- Assessment of advance tax liability and payment of advance tax periodically
- Filing of Income Tax Returns
- 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. Need help? Drop your queries at info@cakartikmjain.com
Kartik M Jain & Associates, CA in Pune is a professionally managed firm serving domestic and international clients providing services relating to direct and international taxation, indirect taxation, auditing and assurance and Consultancy. It is amongst the best CA firms in Pune. Our sister Firm, Payal K Jain & Associates, a Company Secretary in Pune provides services in relation to Company Formation in Pune and across India, Corporate Law and Compliance, ROC filings, FEMA, Trademark Registration, etc.
Our Services :- GST consultation, Chartered accountant, IT returns consultant, Corporate law, Taxation, Regulatory & Advisory Services.
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