Private Limited Company:
Table of Contents:-
As per Section 2(68) of the Companies Act, 2013 any company is called as a Private Limited Company when it is limited by its shares and have minimum paid-up share capital that has been prescribed in the act and also shall-
- Restricts the right of transfer of shares of the company
- Have a limit of members not more than 200 in total, except for one person company
- Prohibits the invitation of the public to subscribe to the securities of the company.
All such companies are required to comply with the ROC Compliance for Private Limited Company on an annual basis to be compliant with the Registrar of Companies and the laws and regulations.
List of ROC Compliance for Private Limited Company:
There is a whole list of ROC Compliance for Private Limited Company prescribed by the Companies Act that each and every company must comply with. The list is as follows-
- Declaration of Business Commencement: Each and every private limited company incorporated after 2nd November 2018 shall be applicable to file a declaration to the ROC within 180 days of commencement or incorporation of the company.
- Appointment of Auditor: As part of the ROC Compliance for a private limited company, each and every company is required to appoint its First Auditor within 30 days of registration of the company. The auditor as per Section 139 of the Companies Act, 2013 is liable to hold the office till the conclusion of the first Annual General Meeting (AGM) of the company.
- Holding the Board Meeting: The first board meeting of the company must be held within 30 days of its incorporation as per the ROC Compliance for Private Limited Company. After that in one calendar year at least two board meetings must be conducted. The gap between the two subsequent meetings cannot be more than 120 days.
- Holding the Annual General Meeting (AGM): The ROC Compliance for Private Limited Company mandates the companies to hold one AGM in a financial year. The gap between two AGMs cannot be more than 15 months in total.
- Disclosure from the Directors of the company: The directors of the company are liable to disclose their interest in other companies in Form MBP 1 for every year.
- Maintenance of Statutory Registers and Records: It is an important checkpoint in the ROC Compliance for Private Limited Company to carry on maintenance of Statutory Registers under Companies Act and also all the important records of the company. This includes the following-
- Minutes of Board Meeting books
- Minutes of AGM books
- Financial statements and books of accounts
- Register for directors
- Register for shareholders etc.
- Financial Statements in Form AOC-4: Each and every private limited company is required to file its financial statements, books of accounts, profit, and loss account statements, notice of the AGM, Form MGT-9 and director’s report in Form AOC-4 within 30 days from the conclusion of the AGM.
- Annual Returns in Form MGT-7: As part of the ROC Compliance for Private Limited Company it is mandatory for the companies to file Form MGT-7 within 60 days from the date of the conclusion of the AGM.