Annual Compliance Checklist for Private Limited Company in Rajasthan

Welcome to the Annual Compliance Checklist for Private Limited Companies in Rajasthan! As a thriving business in the dynamic environment of Rajasthan, we must adhere to our compliance obligations to ensure continued growth and success. This comprehensive checklist is designed to help you navigate the complex web of legal and regulatory requirements that govern Private Limited Companies in the state. By following these compliance standards, you can not only maintain your company’s reputation and credibility but also open up opportunities for expansion and investment.  In this article, we will discuss the Annual Compliance for Private Limited Company in Rajasthan.

What is Annual Compliance for a Private Limited Company?

A Private Limited Company requires to maintain its active status through regular annual reporting to the Ministry of Corporate Affairs. Every private company must submit an annual report and audited financial statements to the Ministry of Corporate Affairs for each financial year. Submission to the commercial register is mandatory regardless of turnover, regardless of whether it is zero or crores. Regardless of the number of transactions made, annual compliance is mandatory for every registered company.

Every private limited company has to file various forms and documents every year under the Companies Act, 2013, and the Company Incorporation Rules, 2014. A private limited company is a separate legal entity that provides the benefit of limited liability to its shareholders. A limited liability company must avoid legal disputes that would damage its image and company name. If the company follows compliance procedures, there will be no legal fines or penalties.

Benefits of Annual Compliance for Private Limited Company in Rajasthan

A few advantages of the annual compliance checklist for a Private Limited Company in Rajasthan are-

• Greater credibility of the company: Legal compliance is necessary for every company. The date of filing the company’s annual return is displayed on the portal MCA. For government tenders, loan approval, or for other purposes, the regularity of performance is an important criterion for measuring the trustworthiness of the company. Regularity of performance also increases the credibility of the business, attracts more customers, and helps in obtaining government tenders and loan approvals.

• Attract more investors: Financial records and regulatory compliance are the main points of interest for investors. Investors are always inclined to favor companies with regular compliance. Therefore, for a private company to attract more investors, it is important to file annual reports regularly.

• Maintain active company status and avoid penalties: A private company needs to file annual returns regularly to avoid penalties. Failure to file annual compliance can also reduce the company’s business status. A company may also be published as defunct or removed from the ROC. The directors concerned are also disqualified from further appointment.

Documents required for Annual Company Filing

The requisite documents for the annual compliance of the company are-

• Certificate of Incorporation of the Company
• PAN card
• Certificate of Incorporation
• MOA – AOA of a private company
• Audited financial statements
• Audit of the financial statements by an independent auditor
• Audit Report and Board Report
• It must cover the independent auditor’s report and the board’s report
• DSC director
• An active DSC of one of the directors is to be provided and submitted.

Annual Compliance Checklist for Private Limited Company in Rajasthan

Let us check the annual compliance for Private Limited Company in Rajasthan-

• Organizing the Annual General Meeting (AGM): Every Private Limited Company in Rajasthan has to hold a general meeting within six months of the end of the financial year (FY). During the general meeting, the directors present financial statements, appoint auditors, declare dividends, and discuss the company’s finances. It is crucial to call the general meeting before the set date to comply with the Companies Act 2013.

• Preparation of financial statements: Limited companies must keep accurate financial records, including balance sheets, profit and loss statements, and cash flow statements. The financial statements should be prepared under the Generally Accepted Accounting Principles (GAAP) and following the Companies Act, 2013, and Indian Accounting Standards (Ind AS).

• Annual statutory audit and submission of financial statements: Hire a qualified Chartered Accountant (CA) to conduct a statutory audit of the company’s financial statements. The audited financial statements along with the director’s report should be filed with the Register of Companies (RoC) within 30 days of the general meeting. Failure to register within the prescribed period may result in penalties and legal consequences.

• Appointment and rotation of auditors: Ensure compliance with the mandatory rotation of auditors as per the provisions of the Companies Act 2013. Appoint a new auditor if necessary or re-appoint an existing auditor for a further term during the general meeting. Companies are required to file the necessary forms with the ROC to register the appointment or reappointment of auditors.
• Compliance with tax obligations:
  • Income Tax Returns: Limited companies have to file their Income Tax Returns (ITRs) with the Income Tax Department by the due date, which is usually 30 September after the end of the fiscal year.
  • TDS Compliance: Ensure timely deduction and payment of TDS (Tax Deducted at Source) on relevant transactions. Submit TDS returns within the prescribed time limits and issue TDS certificates to the deductors.

• Goods and Services Tax (GST): Comply with GST regulations, including filing regular GST returns, paying tax obligations, and keeping accurate records.
• Annual return submission: File the annual return in Form MGT-7 with the RoC within 60 days from the date of the general meeting. The annual report contains data on the company’s shareholders, directors, registered office, share capital, and other material information.

• Regulatory reporting compliance:
  Apart from annual filings, Rajasthan private limited companies have to comply with various periodic filings such as:
  • Submission of financial statements and annual reports in XBRL format, if relevant.
  • Submission of forms related to the establishment/adjustment of the easement on the company’s property, if any.
  • Completion of forms for any significant changes in the company’s share capital, executives, headquarters, etc.

Event-based Compliance Private Limited Company

Other matches need to be made. Some of them are listed below:

• Change in director or company headquarters.
• Increase in paid-up capital or increase in share capital.
• Submission of all resolutions and agreements.
• Remuneration or loans issued to directors.

Final words

Adhering to annual compliance requirements is crucial for private limited companies in Rajasthan. By following the annual compliance checklist outlined in this article, companies can ensure smooth operations, avoid penalties, and maintain good corporate governance. It is advisable to seek professional advice from company secretaries and chartered accountants to ensure complete compliance with all the legal and regulatory obligations applicable to private limited companies in Rajasthan.

In case of any query regarding the annual compliance checklist for Private Limited Companies in Rajasthan, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at [email protected].