Adhering to annual compliance standards is essential for a private limited company operating in Rajasthan, India, to keep a clean record with the relevant regulatory bodies and guarantee efficient business operations. In this blog we will walk you through Annual compliance checklist for Private Limited Company in Rajasthan from financial filings to regulatory submissions, understanding and fulfilling these obligations will not only keep your company compliant but also foster trust among stakeholders and protect your company’s reputation. To ensure a successful and legally compliant year, let’s examine the important compliance areas.
| Table of Contents |
What does Private Limited Company annual compliance mean?
Rajasthan is a vibrant state in India that offers an abundance of advantages that make it an ideal choice for businesses. With its business-friendly environment, well-developed infrastructure, and strategic geographical location, Rajasthan provides a perfect platform for your company to thrive.
Annual compliance for a private limited company refers to the set of legal obligations and regulatory requirements that the company must fulfil on an annual basis to remain compliant with the laws and regulations of the country in which it operates. These compliance activities are essential to maintain the company’s legal standing, protect shareholders’ interests, and ensure transparent and responsible business practices.
Benefits of annual compliance for Private Limited Company in Rajasthan
The annual compliance checklist for a Private Limited Company in Rajasthan has a few benefits, including:
- Greater credibility of the company: Every organization must comply with the law. The MCA portal displays the private limited company return filing date. Regular performance is a crucial factor in determining a company’s credibility when applying for government contracts, loans, or other objectives. Regular performance builds the company’s confidence, draws in additional clients, and facilitates winning government contracts and loan approvals.
- Increase the number of investors: The major areas of interest for investors are financial records and regulatory compliance. Investors tend to favour businesses that consistently comply. As a result, it’s crucial for private companies to submit annual reports on time if they want to draw in more investors.
- Maintain active company status and avoid penalties: A private limited company annual return filing must be on time to maintain its status as an active business and to stay out of trouble. The company’s ability to conduct business may also be affected by annual compliance failure. A business may also be deleted from the ROC or declared inactive. Additionally, the directors in question are ineligible for future appointments.
Required Documents for Annual Company Filing
The requisite documents for the annual compliance of the company are:
- Incorporation Certificate
- PAN Card
- Certificate of Incorporation
- MOA – AOA of Private Company
- Audited Financial Statements
- An independent auditor must audit financial Statements
- Audit Report & Board Report
- Independent Auditor’s report and Board report must be concerned
- DSC of Director
- An accurate and active DSC of one of the directors must be provided and presented.
Rajasthan private limited company annual compliance checklist
Below is the Rajasthan private limited company annual compliance checklist:
- Organizing the Annual General Meeting (AGM): Within six months of the end of the fiscal year (FY), every Private Limited Company in Rajasthan is required to have an AGM. The directors discuss the company’s financial situation, present financial statements, select auditors, and issue dividends during the annual general meeting. To follow the 2013 Companies Act, the general meeting must be called before the designated day.
- Financial statement preparation: Companies are required to maintain proper financial records, such as balance sheets, profit and loss statements, and cash flow statements. The Indian Accounting Standards (Ind AS) and the Generally Accepted Accounting Principles (GAAP) should be followed when preparing the financial statements.
- Submission of financial statements & Annual statutory audit: Hire a certified Chartered Accountant (CA) to do a statutory audit of the company’s financial statements each year. Within 30 days of the annual meeting, the director’s report and the audited financial statements must be filed with the Register of Companies (RoC
- To ensure RoC compliance for private limited company. Failure to ensure ROC filing for private limited company that is to register within the prescribed period may result in penalties and legal consequences.
- Rotation of auditors: Ensure that the appointed auditors are rotated in accordance with the Companies Act 2013’s requirements. If required, appoint a new auditor, or extend the tenure of an existing auditor during the general meeting. To record the appointment or reappointment of auditors, companies must provide the required documentation to the ROC.
- Income Tax Returns: Limited companies must file their Income Tax Returns (ITRs) by the deadline, which is typically the 30th of September the year after the fiscal year ended.
- TDS Compliance: Ensure that TDS (Tax Deducted at Source) is deducted and paid on time for all relevant transactions. Provide TDS certificates to the deductors and submit TDS returns within the allotted deadlines.
- Goods and Services Tax (GST): Comply with GST regulations by submitting timely GST returns, making required tax payments, and maintaining accurate records.
- Annual return submission: Within 60 days of the date of the general meeting, submit the annual return in Form MGT-7 to the RoC. The company’s shareholders, directors, registered office, share capital, and other important information are all listed in the annual report.
- Regulatory reporting compliance: Submission of forms related to the establishment/adjustment of the easement on the company’s property, if any, financial statements, and annual reports should be submitted in XBRL format, if applicable and filling out paperwork for any important adjustments to the company’s share capital, leadership, or headquarters, among other things.
Event-Based compliance for Private Limited Company
There are other compliances for private limited companies which need to be done when an event takes place in Rajasthan. Some of them are mentioned below:
- Change in registered office or Directors.
- A rise in the paid-up capital or the share capital.
- Filing of all agreements and resolutions.
- The issue of remuneration or loans to the Directors.
Conclusion
In conclusion, it is crucial for a Private Limited Company operating in Rajasthan to follow the annual compliance checklist. The cost of annual compliance for private limited company differs from company to company. Companies can protect their legal and financial soundness, avoid fines, and foster stakeholder trust by carefully fulfilling these obligations. The to-do list often contains items like submitting yearly returns, holding board meetings, maintaining statutory registers, and fulfilling tax obligations. Adopting a proactive attitude toward compliance not only promotes strong company governance but also shows a dedication to openness and moral behaviour. Meeting these compliance criteria would surely support the company’s long-term success and growth in this dynamic state as Rajasthan continues to offer a welcoming business climate.
