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These Legal Compliances are Required for Private Limited Companies

We already know that companies in India are governed by the Companies Act, 2013. However, some amendments have been made to this act in the recent past.

Company law provides businesses with legal compliances that they need to follow and ensure its smooth operation within their working space. If you’re looking for business registration lawyers, visit our website to get an insight on such services offered.

As you must be aware about different business structures, Private Limited Company is considered to be the most reliable and popular legal entity in India. However, there is a set of legal compliances which are required to be followed.

Below are a few common compliances listed for a Private Limited Company -

Appointment of an Auditor -The auditor should be appointed within the first month from the date of incorporation. This auditor will be appointed for a period of five years after filling an ADT-1 form.

 
Statutory Audit of Accounts – Just like any other audit, the purpose of statutory audit in a private limited company is to determine whether the company is providing a fair and accurate representation of their finances such as bank balances, and other financial transactions.
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Holding Annual General Meetings – Within a period of eighteen months after setting up a private limited company, the organization must hold its first Annual General Meeting. Moreover, a company must conducts its first general meeting within 9 months after setting up the organisation’s structure. There should be two AGMs held every year, and the gap between each should not be more than fifteen months.

Filing of Annual Return – It is compulsory for every company to file its Annual returns with the Registrar within 60 days of the Annual General Meeting. This can be done by filing E-Form MGT-7. The E-Form MGT-7 needs to be digitally signed by at least one Director of the company and get certified by a practicing Company Secretary.

Filing of Financial Statements –Every company is required to give its Financial Statement within 30 days of the Annual General Meeting. This can be done by filing E-form AOC-4 with the Registrar of Company. This type of E-form should be signed by at least one Director and further get sanctioned by a Company Secretary or Chartered Accountant in practice.

Preparation of Directors’ Report – Every private limited company has to prepare a board report entailing necessary details of all the operations during the year, net profits, state of the company and dividend declaration.

Business registration is a crucial step, but what’s even more important is abiding by legal compliances enlisted by the law.

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