Annual compliance in india
COMPLIANCE REQUIREMENTS FOR LIMITED LIABILITY PARTNERSHIP
All LLP’s are required to comply with certain regulations and file statutory filings with the Government each year.Some of thr basic compliance
requirements are pointed out as follows.
1. BOOKS OF ACCOUNTS
Every LLP’s should maintain proper books of accounts at their Registered Office either on Cash or Accrual basis under Double E ntry System of book keeping. For LLP’s having a turnover of more than 40 lakhs or capital over 25 lakhs, shall audit its accounts by a Chartered Accountant. Penalty: Any LLP not compluing with the provisions shall be punishable with a fine of not less than 25000 and a maximum of 500000. Any designated partner could be punished with a penalty of minimum 10000 and maximum of 100000
2.ANNUAL RETURN FILING
An LLP has to file 2 type of returns in a financial year – FORM 8 & FORM 11
* Must be filed within 30 days from the end of 6 months of the Financial Year
* Must be signed by 2 designated partners
* Must be certified by a Chartered Accountant / Company Secretary / Cost Accountant
Form has 2 parts:
Part A- Statement of Solvency
Part B- Statement of Accounts , Statement of Income & Expenditure
Penalty for not filing the form is Rs.100 per day until it is complied
Contains details about number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners
Should be filed within 60 days from the closure of Financial Year, ie; May 30
An LLP cannot be wound up or closed until the Annual Returns are filed.3
3.INCOME TAX RETURN FILING
The Income Tax Rate applicable for ann LLP registered in India would be 30% on Total Income.In addition to the Income Tax , a surcharge will be levied @ 12% if the income exceeds Rs. 1 crore.
NOTE:- Surcharge is subjected to marginal relief. The amount of income tax and surcharge shall further be increased by health and education cess @ 4% of such income and surcharge
4. ALTERNATE MINIMUM TAX FOR LLP
Similar to income tax applicable for a company, LLP is also subject to Alternate Minimum tax. A Alternate Minimum tax of 18.5% of adjusted total income is applicable for LLP. Hence, income tax payable by LLP cannot be less than 18.5 per cent (increased by income tax surcharge, education cess and secondary and higher education cess).
5.DEADLINE FOR LLP TAX FILING
The deadline for LLP tax filing in India is July 31st if tax audit is not required.
6.LLP TAX AUDIT LIMIT
LLP whose turnover exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are required to get their accounts audited by a practising Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.
7.PROCEDURE FOR LLP TAX FILING
LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. After filing LLP tax return, it is advisable for the taxpayer to print two copies of Form ITR-V.
8.LLP TAX PAYMENT
LLP tax payment can be made in physical mode through designated banks or through e-payment mode.
LLPs that are required to get its accounts audited are required to pay tax through e-payment mode only.
COMPLIANCE REQUIREMENTS OF PRIVATE LIMTED COMPANY
As a Private Limited company there exist a massive legal and regulatory requirements that the Government expects them to be fulfilled. They can
be as follows:
It is required to conduct atleast 4 Board meetings in an year such a way that atleast one meeting in every quarter. Quorum is 1/3rd or 2 Directors whichever is greater. The meetings need to be logged and the signed minutes need to be maintained at the Registered Office.
2.ANNUAL GENERAL MEETING
It is the meeting of the shareholders where in which Financial Statements are approved, dividends are declared and Auditore are appointed. AGM needs to be held in the city where the registered office of the company is situated.
3.ANNUAL FILING OF FORMS
There are a number of annual forms that need to be filed besides the annual financials. The information is quite detailed and talks about shareholdings, directors, financials, etc. All these forms are required to be certified by a practicing Chartered Accountant or practicing Company Secretary. Companies having paid up share capital in the range of INR 1 million to 50 million are required to file a Compliance Certificate from a practicing Company Secretary
4.MAINTENANCE OF STATUTORY REGISTERS & MINUTES BOOK
Registers such as Register of Members, Register of Directors, Register of Contracts, Register of Charges etc.and Minutes Book are to be maintained at the Registered office of the Company.
5.INCOME TAX RETURNS
Any Private Limited Company registered in India must file its Income Tax Returns on or before 30th September 2019 for the Financial Year 2018-’19. In case of non- compliance a penalty of Rs.10000 shall be levied.
6.APPROVAL AND SIGNING OF FINANACIAL STATEMENTS
The financial statement shall be approved by the Board of Directors and signed by 2 Directors out of which one shall be managing director and the chief executive officer, if he is a director in the Company, Chief Finance officer and the Company Secretary of the Company, wherever they are appointed for submission to the auditor for his report thereon.
7.FILING OF FINANCIAL STATEMENTS OR FINANCIAL RESULTS
Every Company is required to file its Financial Statements within 30 days of its Annual General Meeting with Registrar of Company in E-FORM AOC -4 which shall be digitally signed by at least one Director and is required to be certified by A Company Secretary in Practice/ Chartered Accountant in Practice/ Cost Accountant in Practice if the Company is not a Small Company.
8.FILING OF ANNUAL RETURN
It is mandatory for every company to file its Annual Return with Registrar of Companies within 60 days of Annual General Meeting in E-FORM MGT-7 which shall be signed by atleast one Director and is required to be certified by a Company Secretary in practice if the Company is not a small company.
COMPLIANCE REQUIREMENTS OF ONE PERSON COMPANY
The following are the post incorporation compliance requirements of OPC
All companies including a OPC is required to paint or affix the name of the company and address of its registered office outside every office or place in which it carries on business.
2.COMPANY RUBBER STAMP
A round rubber stamp bearing name of the company and a straight rubber stamp bearing the name of the company along with designation of the authorised signatory is required for executing various legal documents like Board Resolutions, bank account opening forms, cheques, etc.,
The name and registered office address of the OPC must be printed on all letterhead, invoices, notices and other official documents of the company.
4.OPC PAN APPLICATION
After incorporation it is mandatory for any legal entity to obtain PAN CARD.It can be applied online to receive the PAN allotment letter which further shall be signed by the OPC Director and sealed with the rubber stamp of the entity which shall be couriered to National Securities Depository Limited (NSDL)
5.OPENING OPC BANK ACCOUNT
As per Reserve Bank of India’s KYC Norms, for opening a current account for OPC, following documents are required:
(i) Self attested copies of OPC Certificate of Incorporation
(ii) MoA of OPC
(iii)AoA of OPC
(iv)Resolution to open Bank Account for Company
(v) Copy of PAN allotment letter
(vi)Copy of utility bill
(viii)Identity proof of the Director
6.APPOINTMENT OF AUDITOR
A practising Chartered Accountant shall be appointed as the Auditor of thr firm by the Director within 30 days of Icorporation
7.OPC ANNUAL GENERAL MEETING
In case of an OPC where there is only one director on the Board of Directors, then it is sufficient for the resolution by one Director be passed and entered in the minutes-book. The signed and dated resolution by Director of a OPC is deemed to be the meeting of the Board of Directors for all the purposes under the Company’s Act.
Note:Provisions relating to quorum for meetings of Board does not apply to a OPC where there is only one Director on its Board of Directors.
8.OPC FINANCIAL STATEMENTS
Balance sheet as at the end of the financial year
Profit &Loss Account”
Cash Flow statement
Statement of changes in Equity (if applicable)
Explanatory note forming part of any document
COMPLIANCE REQUIREMENTS OF A PUBLIC LIMITED COMPANY
For a Public Limited Company, the following are the main and most important compliances
1.ANNUAL RETURN IN FORM MGT-7
This Form contains the latest information about the directors and shareholders of the public limited company, and is to be filed with relevant ROC within Sixty days of holding the Annual General Meeting. In case, the total paid-up capital of the public limited company equals to or exceeds Rs. Ten Crore, or its annual turnover crosses Rs. Fifty Crore, then, there will arise the requirement of filing the Form MGT-8 (Certification of Annual Return) also, within Sixty days from the end of the financial year.
2. FINANCIAL STATEMENTS IN FORM AOC-4
FORM AOC-4 shall be filed with the associated ROC within 30 days of holding the AGM.This Form should contain Balance Sheet , Profit and Loss Account, Director’s Report, Cash Flow Statement, Auditor’s Report and the Consolidated Financial Statement.
NOTE: Every Listed Public Company in India is required to prepare its Financial Statements in eXtensible Business Reporting Language (XBRL)
3. INCOME TAX RETURNS
Income Tax Returns shall be filed on or before 30th September.Tax Udit is compulsory if the Annual turnover of the company exceeds Rs.1 crore
4. SECRETARIAL AUDIT REPORT IN FORM MR-3
Every Public Limited Company, whether listed or unlisted, shall submit Secretarial Audit Report along with the Board Report under the satisfacton of any of the following conditions :
(a) When the total paid up capital of the company is greater than or equal to Rs.50 crore
(b) Annual Turnover is greater then or equal to Rs.250 crore
5. FORM MGT-14
Adopted Financial Statements and Director’s Report shall be filed within 30 days of the board meeting of the Public Limited Company
6. FORM MGT-15
This Form contains report on Annual General Meeting (AGM) of the company.
Various compliances under other applicable Laws
Every Public Company is reqyired to comply with
1.Labor and Employment Law
2.Corporate and Commercial Laws
3.Excise and Custom
4.Reserve Bank of India
6.Intellectual Property Laws
7.Pollution Control ACT
8.PF and ESI Regulations
9.Maritime and Admirality Laws etc.,
Rs4999 - 16000
Rs. 16000Private Limited Company
Rs. 7499Limited Liability Partnership
Rs. 14499One Person Company
Rs. 15499Company Name Change
Rs. 4499Registered Office Change
Rs. 3449Add Directors
Rs. 3449Remove Directors
Rs. 999Increase Authorize Capital
Rs. 999Share Transfer
Rs. 7499MOA Amendment
Rs. 4999Add Partner