A private limited company is the most famous type of business entity. Having a startup as a private limited company has to follow essential compliances laid down by the Companies Act under the Ministry of Corporate Affairs (MCA). Recently, the government disqualified more than 3 lakh companies for not following the compliances of private limited companies. Non-compliance can cause penalties and also can be the end of your business. So, private limited companies must follow the compliances provided by the regulatory bodies.
Listed below are some of the compliance for startups as private limited companies in India:
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Board meetings
At least four board meetings should be conducted in a calendar year, and at least one board meeting needs to be conducted every quarter. In every board meeting, the director should be present. Attendance should be 1/3rd or 2 Directors, whichever is greater. Minutes of the board meeting should be kept at the registered office.
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Annual General Meeting (AGM)
One annual general meeting should be conducted every year, and there should be a gap of 15 months between two AGM’s. The objective is to discuss the appointment of an auditor, financial statement, remuneration, declaration of dividend, etc.
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Annual Filing of Forms
Various forms have to be filled in other than the annual financials. The data is quite specific and talks about directors, shareholdings, etc. These forms are needed to be certified by a practicing Company Secretary or practicing Chartered Accountant.
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Appointment of the Auditor (Form ADT-1)
Companies are required to appoint their first auditor in between 30 days of establishment. The first auditor appointment should be filled using Form ADT-1 and is elected for five years.
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Maintenance of Statutory Register & Minutes Book
Various registers are needed to be kept, such as Register of Charges, Register of Directors, Register of Contracts, Register of Member, etc. The registers should be maintained at the registered office of the company.
Conclusion
Having a startup as a private limited company is not something to be taken lightly and requires a lot of time, effort, and financial knowledge to run your startup smoothly. Fortunately, there are competent and established professionals available for you in the market in giving you professional guidance. Ontaxco-trademark registration in Delhi is here to guide and help you at every stage of your business period. In addition, Ontaxco will provide you with services like applying for an FSSAI license or regulatory requirements and many more.
