Annual Compliances
We offer nationwide annual compliance services. Compliance is crucial post-registration, ensuring a healthy business setting. Annual audits, ROC submissions, and returns are vital. There's a misconception that only substantial profits need filing annually. But whether it's profit or loss, annual filing remains unavoidable, with variations in requirements.
Proprietorship Company:
Proprietorship companies must file their Income Tax Returns annually. Owners under 60 need to file if their yearly income exceeds Rs. 2, 50,000. For those aged 60 to 80, filing is mandatory if income exceeds Rs. 3 lakhs annually. Owners over 80 should file if their total income exceeds Rs. 5 lakhs.
Compliances for Proprietorship
Income Tax filing : For proprietorships with turnover below 1 crore, the income tax return must be filed by July 31st of the assessment year. Businesses exceeding Rs. 1 crore in turnover need a tax audit and the deadline for filing is September 30th.
GST filing: Proprietorships with annual turnover up to Rs. 1.5 crore can opt for quarterly filing, while those above Rs. 1.5 crores must file monthly.
TDS return filing : Quarterly TDS returns have deadlines - July 31st for April to June, September 30th for July to September, January 31st for October to December, and May 31st for January to March.
Private limited company:
A private limited company is a business held privately by a small group with limited liability. Shareholders are only liable to the extent of their investment in the company. This business structure limits owner liability, the number of shareholders to 200, and restricts the public trading of shares. All companies registered under the Companies Act, 1956/2013, whether they're Private Limited, Public Limited, or Section 25/Section 8 Company, must file income tax returns and annual returns with the Ministry of Corporate Affairs. Auditor Appointment: Every company in India needs to appoint auditors within 30 days of incorporation.
Compliances for Private limited Organizations:
Commencement of business: Companies formed after November 2018 with share capital must obtain a commencement of business certificate within 180 days of incorporation. Failure to do so incurs a penalty of Rs. 50,000 for the company and Rs. 1,000 per day for the Directors.
GST Filing: Private limited companies with an Annual Turnover up to Rs 1.5 crore can opt for quarterly filing, while those above Rs. 1.5 crores must file monthly.
Income Filing: Private limited companies need to file their income tax returns before the 30th of September of the respective assessment year.
TDS Return Filing: Quarterly TDS return filing deadlines are as follows: 1st April to 30th June – Due date: 31st July, 1st July to 31st September – Due date: 30th September, 1st October to 31st December – Due date: 31st January, 1st January to 31st March – Due date: 31st May.
Form AOC-4 with MCA: All companies must file Form AOC-4 within 30 days from the date of the Annual General Meeting, with a penalty of Rs. 100 per day for non-filing.
Form MGT-7 with MCA: Companies are required to file Form MGT-7 within 60 days from the date of the Annual General Meeting, with a penalty of Rs. 100 per day for non-filing.
DIN KYC :Every Director allotted a DIN by the end of a financial year needs to file Form DIR-3 KYC before 30th April of the next financial year.
Filling Form DPT - 3:Companies disclosing details of outstanding money or loans received from April 1, 2014, to January 22, 2019, should file within 30 days from the formation of the form.
INC-22-A:Companies incorporated before December 31, 2017, must file the particulars for verification of the registered office in e-Form INC-22A by April 25, 2019. The penalty for non-filing is Rs. 10,000.
One Person Company:
It's a form of a private limited company, different from its members legally. This means the company is responsible for its actions, not its members. Therefore, creditors cannot pursue the members for the company's debts. The company must file its Income Tax Return and annual returns with the Ministry of Corporate Affairs within 180 days after the end of the financial year. The deadline for a company to file its income tax return is on or before the 30th of September.
Appointment of Auditor: A One Person Company registered in India must appoint auditors within 30 days from the date of incorporation.
Compliances for OPC:
Initiation of business: An One Person Company incorporated post November 2018 with share capital must obtain a business commencement certificate within 180 days from its incorporation date, failing which incurs a penalty of Rs. 50,000 for the company and Rs. 1,000 per day for its officers.
GST Filing: An One Person Company with an Annual Turnover up to Rs. 1.5 crore can opt for quarterly filing, while those exceeding Rs. 1.5 crores must choose monthly filing.
Income Expense Filing: The Income Tax return for a One Person Company needs to be filed by September 30 of the respective assessment year.
TDS return Filing: Quarterly TDS return filing deadlines are as follows – April 1 to June 30 (due on July 31), July 1 to September 30 (due on September 30), October 1 to December 31 (due on January 31), and January 1 to March 31 (due on May 31).
Steps to Change OPC over to Private Company
There are two types of changes for an OPC (One Person Company) - voluntary conversion to Private/Public Limited and mandatory conversion to Private/Public Limited.
Form AOC-4 with MCA:Every OPC needs to file Form AOC 4 within 180 days from the end of the financial year.
Form MGT-7 with MCA: It's necessary for every OPC to file Form MGT 7 within 180 days from the end of the financial year.
DIN KYC: Each Director assigned DIN by the end of the financial year must file Form DIR-3 KYC before April 30 of the immediate next financial year.
Filling Form DPT - 3 : Initial Return for disclosure of details of outstanding money or loan received by the company but not considered as deposits from April 1, 2014, till January 22, 2019, should be filed within 30 days from the date of dispatch of the form.
INC-22-A: All companies incorporated by December 31, 2017, and currently active need to submit details for verification of the registered office in e-Form Active INC-22A by April 25, 2019. Non-filing of the form by the due date incurs a penalty of Rs. 10,000/-.
Limited liability partnership:
Limited Liability Partnerships (LLPs) are required to submit their income and asset flow statements to the respective Income Tax Departments and Registrar of Companies. LLPs registered in India must file their Annual Return by May 30, and the Statement of Account filing deadline is October 30. Besides submitting returns with MCA, LLPs must also file their income tax returns every year within six months from the end of the financial year.
Compliances for LLP
LLP Form 11: This form details partner information, contributions received from each partner, total number of partners, and corporate body details as a partner. All LLPs are required to file this form by May 30 of the next financial year along with the prescribed fee. Failure to file within the due date will incur a penalty of Rs.100 per day.
LLP Form 8: Form 8 provides information about Solvency Declaration, Statement of Accounts, and Statement of Income and Expenditure. It should be filed by October 30 of the following financial year along with the prescribed fee. Not filing within the due date will result in a penalty of Rs.100 per day.
GST Filing:LLPs with an Annual Turnover up to Rs 1.5 crore can opt for quarterly filing, while those with a turnover above Rs.1.5 crores should opt for monthly filing.
Income Tax Filing: The deadline for LLP income tax filing is July 31. LLPs with a turnover exceeding Rs. 40 lakh or contributions surpassing Rs. 25 lakh are required to have their accounts audited, and the deadline for filing income tax in audit cases is September 30.
TDS return Filing:TDS return filing is on a quarterly basis – April 1 to June 30 – Due date is July 31, July 1 to September 30 – Due date is September 30, October 1 to December 31 – Due date is January 31, January 1 to March 31 – Due date is May 31.
FAQ
The Registrar of Companies (ROC) oversees the implementation of the Companies Act 1956 and operates within the Ministry of Corporate Affairs. It mandates that all companies under this Act submit diverse forms, refunds, and documents electronically to the Registrar of Companies (ROC) within specified deadlines and with the required fees.
Companies are mandated to comply with the ROC by submitting different return forms and documents, categorized into two sections. First, there's the Annual Compliance, which encompasses regulations to be fulfilled annually by all companies falling under the Companies Act, 1956. Then, there's the Other Compliance, involving rules to be met at different intervals during various events.
As part of the Annual Submission, Companies governed by the Companies Act 1956 need to file specific e-Forms with the Registrar of Companies (ROC):
Form 23AC: Balancing Sheet completion required for all companies.
Form 23ACA: Preparing Profit and Loss Account mandatory for all companies.
Form 20B:Filing Annual Returns for Companies with Share Capital.
Form 66: Complying with a Certification for Companies having paid between Rs. 10 lakh to Rs. 2 crore.
Form 21 A: Filling Annual Returns for companies without share capital.
Under Section 162 of the Companies Act, 1956, failing to comply with Section 159 provisions results in the Company and its directors facing fines throughout the duration of the default.
All annual E-Forms, except Form 23AC / ACA, can be updated for previously filed forms. However, for the subsequent update, a new filing fee will be applicable.
Upon successful filing and payment of the e-form, an SRN (Service Request Number) is provided. This SRN enables tracking of transaction status via the "Track your transaction status" link on the MCA website. Additionally, once the form reaches the relevant Department official, an email notification is sent, and the form status changes to Approved. In the rare event of any issues, necessary steps should be taken promptly.
Forms 66, 23AC, and 23ACA should be filed within 30 days after the Annual General Meeting (AGM), while Form 20B should be filed within 60 days following the AGM.