Running a Private Limited Company in India is exciting, but there are also some rules you need to follow every year to keep your business in good standing. These yearly legal tasks are “Annual Compliance for Private Limited Company”.
If you miss any of these, your company might have to pay penalties or face other legal troubles. Don’t worry — we’ve made it super simple for you. Here’s everything you need to know in plain English.
What is Annual Compliance?
Annual compliance means completing and submitting certain forms, documents, and reports to the government every financial year. It helps the authorities ensure your company works properly and stays legal.
Why is It Important?
✅ Avoid heavy fines and penalties
✅ Keep your company in “Active” status
✅ Build trust with investors, banks, and partners
✅ Stay on the right side of the law
Key Annual Compliances for Private Limited Companies
Here’s a list of the most important compliance tasks you need to complete every year:
1. Annual Return Filing (Form MGT-7)
You must file this form with the Registrar of Companies (RoC). It includes details about your company, shareholders, and directors.
2. Financial Statements (Form AOC-4)
This form includes your balance sheet, profit & loss statement, and auditor’s report. It must be filed within 30 days of the annual general meeting (AGM).
3. Income Tax Return (ITR)
All companies must file their ITR by September 30th (or as extended by the government).
4. Conducting Annual General Meeting (AGM)
Every Private Limited Company must hold an AGM within 6 months of the end of the financial year.
5. Director KYC (DIR-3 KYC)
Each director must submit their KYC details every year to avoid disqualification.
6. Form DPT-3 (if applicable)
If your company has taken any loans or advances, this form must be filed.
Extra Tips to Stay Compliant
Keep proper records of all financial transactions
Use a professional or CA to help with filings
Set reminders for all important due dates
Don’t wait till the last minute
Penalties for Non-Compliance
Missing your compliance deadlines can result in:
Daily late fees (₹100 per day or more)
Disqualification of directors
Legal notices or even a company strike-off
So it’s always better to stay ahead and avoid the last-minute rush.
Conclusion
In short, “Annual Compliance for Private Limited Company” is not just a legal formality — it’s a crucial part of running your business smoothly and legally. Staying compliant shows you are serious about your company and builds trust with everyone you deal with.
Need help with your compliance? A professional can save you time and keep your company safe from trouble.