Compliance is the backbone of corporate governance, and for Private Limited Companies in India, it ensures transparency, legal validity, and smooth functioning of business operations. Governed by the Companies Act, 2013, startups and SMEs alike must adhere to various statutory, regulatory, and financial compliance requirements throughout the year. Neglecting these obligations could lead to penalties, legal challenges, or even the company being struck off the registrar. In this comprehensive guide, we cover all types of compliance, including ROC filings, annual and event-based compliance, income tax, GST, and employment laws applicable to Private Limited Companies in India.
Types of Compliance for Private Limited Companies
1. ROC (Registrar of Companies) Compliance
ROC compliance is the legal backbone for all Private Limited Companies. These are mandatory filings and updates that need to be reported to the Ministry of Corporate Affairs (MCA). They are broadly categorized into:
- Annual Compliance: Mandatory every year, irrespective of turnover. It includes financial statement filings, annual returns, and director KYC.
- Event-Based Compliance: Triggered by specific company events such as change in directors, registered office, or shareholding.
- Other Compliance: Maintaining statutory registers, board meetings, auditor appointment and changes, and recordkeeping obligations.
2. Annual Compliance: Essential for All Companies
These are filings and disclosures made on a yearly basis to the MCA and other regulatory authorities. The key components include:
- INC-20A: Declaration of Commencement of Business within 180 days of incorporation (mandatory post-November 2019 for companies with share capital).
- Board Meetings: At least 4 per year, with proper documentation and advance notice.
- AGM (Annual General Meeting): Within 9 months from end of the first financial year; every year thereafter within 6 months from FY end.
- Financial Statements (AOC-4): To be filed within 30 days of AGM including Balance Sheet, P&L, cash flow, and auditor report.
- Annual Returns (MGT-7): To be filed within 60 days of AGM covering shareholding, directorship, and company details.
- Director KYC (DIR-3 KYC): Mandatory for all directors by 30th September annually.
- Auditor Appointment (ADT-1): Appointed within 30 days of incorporation and form filed within 15 days of AGM.
- DPT-3: Annual return of deposits and other unsecured loans filed by 30th June.
- Directors’ Report: Drafted as per Section 134 and circulated 21 days before AGM.
3. Event-Based Compliance
These compliances arise when specific events occur in a company. These must be reported within the stipulated timeline:
- Change in authorized or paid-up capital
- Appointment/resignation of directors (DIR-12)
- Change in registered office
- Allotment of shares
- Creation or modification of charges on assets
- Change in auditors
- Change in company structure or objectives
4. Non-ROC (Regulatory/Tax) Compliance
These are compliances mandated by other regulatory bodies:
- Income Tax Return Filing: Even if the company has no revenue, ITR must be filed annually.
- GST Filing: Monthly, quarterly, or annual GST returns based on turnover.
- TDS Returns: Quarterly TDS deduction filing if the company is making salary or contractor payments.
- Provident Fund and ESI Returns: Monthly PF and ESI returns if applicable.
- Professional Tax: Return filing as per respective state regulations.
- Tax Audit Report: Mandatory for companies with turnover exceeding threshold under Income Tax Act.
Compliance Calendar Summary
Compliance |
Form |
Due Date |
Commencement of Business |
INC-20A |
Within 180 days of incorporation |
Annual General Meeting |
AGM |
Within 6 months of FY end |
Financial Statement Filing |
AOC-4 |
Within 30 days of AGM |
Annual Return |
MGT-7 |
Within 60 days of AGM |
Auditor Appointment |
ADT-1 |
Within 15 days of AGM |
Director KYC |
DIR-3 KYC |
30th September |
Return of Deposits |
DPT-3 |
30th June |
Penalties for Non-Compliance
- Heavy penalties on company and officers in default
- Disqualification of directors
- Additional government fees for delayed filings
- Company status marked as "inactive" or struck off
How NeuSource Helps Startups with Compliance
At NeuSource Startup Minds India Ltd., we simplify the entire compliance journey for Private Limited Companies. From incorporation to monthly filings and annual audits, our experts provide:
- Dedicated compliance managers for personalized guidance
- Use of LEDGERS platform for real-time tracking and alerts
- Timely documentation and filing of all statutory forms
- Assistance with income tax, GST, payroll, and secretarial work
- Support in preparing board resolutions, minutes, and registers
Stay compliant. Stay confident. Let NeuSource be your compliance partner.
Janki Gupta
The internet offers opportunity, but only strategy builds success. Don't just exist online—dominate. Choose Neusource to craft your digital footprint and lead your business to its peak.