Compliances Checklist for Private Limited Companies
As layman everyone perceive a private limited company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded. There can be minimum 2 directors in private limited company.
By statute as per Section 2 (68) of Companies Act, 2013 ― “Private Company” means a company having a minimum paid-up share capital *** (the words of one lakh rupees or such higher paid-up share capital omitted by Companies Amendment Act, 2015 ) as may be prescribed, and which by its articles, —
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:
Provided further that—
(A) persons who are in the employment of the company; and
(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
(iii) prohibits any invitation to the public to subscribe for any securities of the company;
Now before one thinks to incorporate a private limited company let us first understand the compliances relating to it.
LIST OF COMPLIANCES;
Half-Yearly Compliances;
| SL NO. | PARTICULARS | E-FORMS | DUE DATE |
| 1. | The Ministry of Corporate Affairs (MCA) issued a notification on 22 January 2019 that specific companies having outstanding dues to the MSME enterprises have to file the particulars of all current outstanding dues with the Registrar of Companies. | MSME-1 | For April-September period- 31 st October. |
Event- Based Compliances;
| SL NO. | PARTICULARS | E-FORMS | DUE DATE |
| 1. | Every director shall inform to the company concerned about his disqualification under sub-section (2) of section 164, if any, before he is appointed or re-appointed. |
DIR-8 | Before director is appointed or re-appointed.
Quarterly Compliances;
No such e-form based quarterly compliances are prescribed as of now, but several compliances have to be done some of them are as follows:
| SL NO. | PARTICULARS | | 1. | Section 179, Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board. |
Which means Company should hold at least 1 (one) Board Meeting every quarter of the calendar year, so as to comply with section 179.
Yearly Compliances;
| SL NO. | PARTICULARS | E-FORMS | DUE DATE | | 1. | Section 184, Every Director of the Company in First Meeting of the Board of Director in each Financial Year | MBP-1 | First Meeting of the Board | | 2. | Section 139 Appointment of Auditor for 5 (Five) years or less. | ADT-1 | Within 15 days from the Annual General Meeting |
Section 92, Every Company shall file its Annual Return with the Registrar of Companies.
All the above-mentioned e-form are inclusive in nature, there are many more event-based e-forms, shall be required as and when event arises, the above e-forms mentioned are frequently used by most of the private limited companies.
All the e-form mentioned above shall be filled within the stipulated due periods along with the fees as prescribed under Companies (Registration offices and Fees) Rules, 2014 , otherwise penalty/ additional fees shall be levied.
Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a piece of professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.
|