18 Aug 2020, 14:30 — 6 min read
Nowadays, the compliance of The Companies Act, 2013, Income Tax Act, 1961, and its rules, GST Act, and other compliances like PF, ESI, Factories Act, etc., have become very important to save time and money for establishments.
In this article, we will discuss monthly, quarterly and annual compliance for startups and private limited companies.
From the very beginning, there are important internal and statutory compliances to comply on time. The following is compliance required immediately after the incorporation of the company, i.e., public or private limited or OPC (one person company) hereafter called "company."
Unlike LLPs or traditional partnership firms, the audit is mandatory for companies irrespective of the quantum of the business transactions or revenue once the financial year is closed. Therefore according to Section 173 of the Companies Act, 2013, a new company shall hold its first board meeting within 30 days of its incorporation and under Section 139 and 141 of the Companies Act, 2013 appoint one auditor within 30 days of registration of the company to audit its book of accounts after the closure of the financial year (FY).
The board of directors of the new company shall take steps to preparing, printing Share certificates, and issuing certificates to the subscribers of the memorandum of association (MOA).
Once the company completes a quarter, it shall hold a meeting of the board of directors, and for the board meeting, the following shall be prepared.
All the above shall be prepared in compliance with the Companies Act, 2013, and one may take help of a Company Secretary (CS) or a Chartered Accountant (CA) help for this.
Also read: What are the objectives of an Annual General Meeting of a company?
Once all the above process is done, the company shall prepare and submit e-Form AOC 4 (due date is within 30 days from AGM), e-Form ADT 1 and e-Form - MGT 7 to ROC by online and pay the applicable fee.
The company shall also file Income Tax Return (ITR) in the relevant form within time.
The company shall also comply with applicable Labour Law Compliance like; The Employees Provident Funds and Miscellaneous Provisions Act, 1952 Employees’ State Insurance Act, 1948 The Payment of Bonus Act, 1965 The Payment of Gratuity Act, 1972 other Act as applicable.
GST Registration: The Company shall register under the GST Act and obtain a GST Registration certificate if the turnover is 20 Lakh or more in any financial year the for the service sector and 40 Lakhs for the trading and manufacturing sector.
Also read: All you need to know about GST: Benefits, registration, documentation
The company shall file monthly GST Returns in GSTR 3B, and GSTR 1 is fit is normal taxpayer and quarterly if it is a composition dealer.
If the turnover of the company is 2 crore or more, then the company shall also file GST Annual return.
Note: The list is only indicative, not exhaustive. Please contact any professional for more data and services.
Also read: A legal point of view
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Posted byAnil Kumar Ganga
"Ananya legal LLP" is a full service, dynamic, and trustworthy Corporate Advisory and Legal Consultancy Limited Liability Partnership (LLP) Firm that specializes in a...
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