Annual Compliance

A Board Meeting is a formal meeting of directors to make important decisions like approving accounts, appointing auditors, and policy decisions.

• Requirement:
  • First Board Meeting → Within 30 days of incorporation.
  • Minimum 4 meetings every year.
  • Gap between 2 meetings should not exceed 120 days.
• Process:
  • Notice of meeting must be sent 7 days before.
  • Minutes must be recorded and signed.
• Why important? Ensures directors are actively managing the company as per law.
• Penalty for Non-Compliance: ₹25,000 for company + penalty on directors.

2. Annual General Meeting (AGM)

• Meaning: Meeting of shareholders where company presents its annual performance.
• Requirement:
  • First AGM: Within 9 months from financial year end.
  • Thereafter: Within 6 months from financial year end (not more than 15 months gap between two AGMs).
• Agenda:
  • Approval of audited financials.
  • Appointment/reappointment of auditor.
  • Declaration of dividend.
• Why important? Provides transparency to shareholders.
• Penalty: ₹25,000 for company + ₹5,000 on each officer.

3. Filing of Financial Statements (Form AOC-4)

• Meaning: This is the electronic filing of Balance Sheet, Profit & Loss, Board Report, CSR Report (if applicable) with MCA.
• Due Date: Within 30 days of AGM.
• Attachments:
  • Audited financial statements.
  • Auditor’s report.
  • Board report.
• Why important? Keeps company’s financials publicly accessible on MCA portal.
• Penalty: ₹100 per day of delay (no maximum limit).

4. Filing of Annual Return (Form MGT-7/MGT-7A)

• Meaning: Annual return is a snapshot of company’s structure, shareholding, directors, and key changes during the year.
• Due Date: Within 60 days of AGM.
• Details covered:
  • Shareholding pattern.
  • Director & KMP details.
  • Changes in share capital.
• Why important? Establishes corporate transparency.
• Penalty: ₹100 per day of delay (no maximum cap).

5. Director KYC (DIR-3 KYC)

• Meaning: Every director must update their mobile number and email with MCA once a year.
• Due Date: By 30th September.
• Process:
  • OTP verification of mobile & email.
  • If filed once, from next year web-based confirmation is allowed.
• Penalty: ₹5,000 per director. DIN also gets “Deactivated” until payment.

6. Appointment of Auditor (Form ADT-1)

• Meaning: Companies must appoint a statutory auditor for 5 years. Filing is done in ADT-1.
• Due Date: Within 15 days of AGM.
• Why important? Auditor is responsible for certifying financials.
• Penalty: Company may face penalties starting from ₹25,000.

One Person Company (OPC)

1. Board Meetings

• If only 1 director → No meeting required.
• If more than 1 director → At least 1 meeting in each half-year (gap ≥ 90 days).
• Ensures decisions are properly recorded.

2. Annual Filing of Financial Statements (AOC-4-OPC)

• Due Date: Within 180 days of financial year end (by 27th September).
• Simplified requirement compared to Pvt Ltd.
• Penalty: ₹100 per day of delay.

3. Annual Return (MGT-7A)

• Due Date: Within 60 days of financial year end (by 30th May).
• Covers: basic details of directors, shareholders.
• Penalty: ₹100 per day.

4. Director KYC (DIR-3 KYC)

• Same as Pvt Ltd.
• Due Date: 30th September.
• Penalty: ₹5,000 per director.

Limited Liability Partnership (LLP)

1. Annual Return (Form 11)

• Meaning: Contains details of partners, contribution, and changes.
• Due Date: 30th May every year.
• Penalty: ₹100 per day (no maximum).
• Even NIL LLP must file.

2. Statement of Accounts & Solvency (Form 8)

• Meaning: Declaration by partners that LLP is solvent & true accounts are maintained.
• Due Date: 30th October every year.
• Penalty: ₹100 per day.
• Includes: Balance Sheet, P&L, solvency declaration.

3. Designated Partner KYC (DIR-3 KYC)

• Same as company directors.
• Due Date: 30th September.
• Penalty: ₹5,000 per DP if delayed.