Company compliance is essential while running a business. All private limited companies, one-person companies, limited companies, and section 8 companies must follow annual compliance rules as per the Companies Act of 2013. These compliances apply regardless of turnover or capital.

Failing to meet ROC compliance can lead to penalties or actions against the firm. However, staying updated with these requirements is often challenging. Sperso Filings makes the annual filing process easier by offering guidance and support for all company compliances.

Annual Compliance for Private Limited Company

Like any other business, private limited companies must strictly follow annual compliance requirements. All filings should be completed on or before the due dates to avoid penalties. Below are key compliances that every private limited company must ensure.

• Business Commencement Certificate
  Companies incorporated after Nov 2019 with share capital must obtain this certificate within 180 days.
  Penalty: ₹50,000 for the company and ₹1,000/day for directors until compliance.
• Appointment of Auditor
  Appoint an auditor within 30 days of incorporation.
  Penalty: ₹300/month delay; business operations may be restricted without an auditor.
• Filing Income Tax Returns (ITR)
  File ITR annually before the due date to ensure tax compliance.
• MCA Form AOC-4 Filing
  Submit financial statements via AOC-4 to MCA before 13 November.
  Penalty: ₹200/day for delays.
• MCA Form MGT-7 Filing
  File annual return (Form MGT-7) with MCA before 13 November.
  Penalty: ₹200/day for delays.
• DIN eKYC Filing
  Directors must complete DIN eKYC within the specified time as per ROC guidelines.
• Conduct Annual General Meeting (AGM)
  Hold AGM within six months of the financial year's end; report AGM details during annual filing.
• Director’s Report Submission
  Submit the Director’s Report as per Section 134, containing essential company information to ROC/MCA.

Other Essential Annual Compliances for Companies

• GST Returns – Monthly, quarterly, and annually.
• TDS Return Filing – On a periodic basis.
• Advance Tax Calculation – Estimation and timely payment.
• Income Tax Return Filing – As per the due dates.
• Tax Audit Report Filing – Where applicable.
• Half-yearly ESI Returns – Submission as required.
• PF Return Filing – Regular Provident Fund compliance.
• Professional Tax Return Filing – As per state laws.
• Other Statutory Evaluations & Reporting – Based on laws like the Environment Protection Act, Competition Act, Factory Act, etc.

How Sperso Filings Can Help in Annual Compliance

• Accounting
  Every business must maintain accounts and prepare financial statements at the end of each fiscal year. Our compliance manager helps in maintaining records and generating financial statements.
• Secretarial Services
  Companies must hold at least four board meetings, an AGM, and prepare directors’ and annual reports each year. Our expert assists in drafting secretarial reports and meeting minutes.
• MCA Annual Return Filing
  AGMs should be held within six months after the fiscal year ends, and the MCA return must be filed by 30 September. Our compliance manager handles the preparation and filing of these returns.
• Income Tax Return Filing
  All companies—active or inactive—must file annual income tax returns, regardless of profit or loss. Our team prepares and files your company’s ITR along with necessary documents.

What Is Compliance in Business?

Compliance in business means ensuring that a company and its employees follow all relevant laws, regulations, standards, and ethical practices. It covers internal policies as well as federal and state laws.

Maintaining compliance helps prevent legal issues, fines, and lawsuits. It also ensures the company operates within legal and ethical boundaries.

Company compliance is an ongoing process. Many businesses create structured programs to consistently manage and monitor compliance over time.

Importance of Online Accounting & Company Compliance Services in India

• Budgeting
  Helps control income and expenses while aligning with company policies and goals.
• Evaluating Business Performance
  Measures key metrics like net profit and sales growth to assess performance.
• Managing Cash Flow
  Tracks incoming funds to manage payments, debts, salaries, and projections.
• Providing Financial Data to Stakeholders
  Gives investors insight into the company's solvency, liquidity, and credit status.
• Legal Requirement
  In India, maintaining tax and financial records is mandatory as per ROC guidelines to avoid fines and penalties.

Importance of Company Compliance Services

• Compliance Grows with Business
  Compliance ensures a company follows legal and safety standards like licences, taxes, and industry regulations. As a business grows, managing compliance in hiring, payroll, safety, and benefits becomes more complex. Industries like food or healthcare face additional production and marketing rules.
• Lower Legal Risks
  Staying compliant reduces risks of fines, lawsuits, or shutdowns. Minor non-compliance can bring warnings, while major breaches lead to heavy penalties. Legal mistakes also strengthen cases against you. A compliance expert helps meet these obligations.
• Improved Safety & Efficiency
  Laws promote safe, fair workplaces, boosting productivity. Safety and anti-harassment rules prevent injuries or incidents that affect profits. Following OSHA and EEOC guidelines protects operations.
• Stronger Public Image
  Compliance can enhance branding. Show non-discrimination in ads and mission statements. Promote policies like parental leave or health perks to attract talent.
• Better Staff Retention
  A safe, respectful workplace keeps employees longer. Weak policies risk losing key talent. Clear steps—warnings, training, or firings—must be enforced. Managers should handle complaints properly.

Types of Business Compliance

• Regulatory Compliance
  Regulatory compliance means following local and international laws relevant to your industry. Each sector has its own legal requirements. It helps build trust with employees, customers, and partners by ensuring your business operates legally and ethically, ultimately enhancing your company’s reputation.
• HR Compliance
  HR compliance ensures your business meets employment laws and protects employee interests. It covers hiring, record-keeping, payroll, overtime, benefits, and workplace policies. Proper HR practices create a happier, more productive workforce and reduce the risk of legal disputes.
• Data Compliance
  Data compliance is about managing customer and employee information securely and legally. Businesses must protect data from theft, loss, or misuse. Compromised data can damage a company's reputation or even lead to closure. Strong data policies safeguard decision-making and business integrity.
• Health and Safety Compliance
  Health and safety laws apply to all industries, not just healthcare. Providing a safe workplace prevents injuries and accidents, allowing employees to perform at their best. Ignoring safety rules risks legal trouble, accidents, and operational disruptions.

Compliances under the Companies Act 2013

• Governs the appointment, qualifications, remuneration, and retirement of directors.
• Regulates the conduct of board and shareholder meetings.
• Covers the preparation, presentation of annual accounts, and maintenance of accounting records.

Process of Filing Annual Compliance Services

Most companies must meet mandatory annual compliances. At Sperso Filings, our expert CAs, tax professionals, and company secretaries manage your company’s annual compliance with top-tier legal guidance. We handle the following MCA-mandated requirements:

• Board Meetings: First meeting within 30 days of incorporation; at least four meetings yearly with no more than 120 days between two meetings.
• Preparation of Meeting Minutes: Minutes of all meetings must be recorded, preserved permanently, and maintained at the registered office.
• Issuance of Share Certificates: Share certificates must be issued to memorandum subscribers within 60 days of incorporation.
• Director Disclosures: In the first board meeting, directors must disclose interests in other business entities.
• Filing Declaration of Business Commencement: Form INC-20A must be filed within 180 days of incorporation.
• Annual General Meeting (AGM): At least one AGM yearly. The first AGM within nine months of the first financial year-end; thereafter, within six months. Annual returns must be filed with the RoC within 60 days post-AGM.
• Quarterly Compliance: A minimum of four board meetings annually, one each quarter.
• Statutory Registrations: GST, PF, ESI, IEC, and other mandatory registrations must be completed.

Why Sperso Filings?

For annual compliance, it's best to rely on our expert compliance managers. Our in-house CAs and legal professionals efficiently handle all your company compliances. Connect with our business experts to get answers to your queries. We offer a clear roadmap for the entire process and assist you at every step — all at affordable prices.