Overview Of Annual Compliance For Public Limited Company

Overview of Annual Compliance for Public Limited Company

As a subsequent legal requirement, the Registrar of Companies (ROC) enforces annual compliances upon publicly limited companies after their registration. The ROC has established dates by which all public limited companies must submit their yearly compliance reports. Companies face hefty penalties when they fail to submit their paperwork by the due date. A public limited company must complete its annual compliance in accordance with the Ministry of Corporate Affairs’ and the Registrar of Companies’ standards.

Annual compliance reports are required of all public limited companies by law. Public limited companies are required to comply with certain regulations every year under the Companies Act, 2013. Once a year, no later than six months following the conclusion of the financial year, there must be an annual general meeting.

 

But, the first of two dates—either nine months after the end of the fiscal year or eighteen months after the date of incorporation—must be met before a newly formed company can hold its annual general meeting. The first day of the fiscal year is April 1st, and the last day is March 31st.

Among other tax filings, all public limited companies must file a compliance return every year. You risk heavy fines or having your business added to the ROC’s Defaulter list if you don’t comply.

Benefits of Public Limited Company Compliance

Compliance is of paramount importance when it comes to running a business. It guarantees that your organization adheres to legal regulations and maintains ethical principles. Compliance is of utmost importance for public limited firms, as they are required to adhere to additional requirements. This section will examine the advantages of adhering to public limited company compliance and why it should be a primary concern for any organization falling under this classification.

The compliance records of the public limited corporation encompass the following advantages:

  • Annual compliance for a public limited business provides legal protection by equipping the company with superpowers that safeguard it from future legal challenges or disagreements. Nevertheless, by implementing compliance measures, the corporation may ensure openness and accountability, thereby avoiding any legal consequences.
  • Complying with regulations as a public limited business can provide a competitive edge in the market. Customers are more likely to select your firm over others since compliance plays a crucial role in gaining their confidence and loyalty.
  • Capital Access: The public limited business necessitates a sufficient amount of capital to facilitate its growth and expansion. Compliance and adherence to regulatory regulations are crucial for your firm to attract potential investors. By demonstrating a strong dedication to following regulations, you can attract investment or obtain entry into the financial markets, which will support your efforts to expand.

Hence, compliance is perceived as a legal duty that must be met by the Public Limited Company. It provides you with legal protection and can contribute to the company’s overall success.

Checklist for Public Limited Company Compliance in India

Public Limited Company Annual compliance consists of below activities:

  1. Maintain Accounts and Prepare financial statements: – Mandatory at the end of each financial year.
  2. Annual returns: – Once a year before 30th September. Annual return consists of information and documents that include:
    1. Filing of Financial Statements with ROC
    2. Shareholding structure of the Company
    3. Registered Office Address
    4. Maintenance of Registers
    5. Compliance Certificate from CS
    6. Register of Member
    7. Company Management
    8. Shares and Debentures details
    9. Debt and charge details
    10. Changes in Directorship
    11. Details of transfers of securities/share
    12. Shareholding structure of the Company
  3. Income tax return: – Each Year on or before the 30th of September. 
  4. Annual General Meeting: – Mandatory once a year.
  5. Board meetings: – 4 meetings in a year, at least once every quarter.
  6. Director reports: – Mandatory once a year.
  7. Annual Filing of Forms: – Mandatory once a year.
  8. Yearly Forms by Directors: – Mandatory once a year.

Documents required for Public Limited Company Compliance

The documents required for Public Limited Company are as follows- 

  • Incorporation Certificate of the Public Limited Company
  • PAN Card
  • Certificate of Incorporation of the Public Limited Company
  • Financial Statements of the Public Limited Company
  • An independent auditor must audit Financial Statements
  • Audit Report & Board Report of the Public Limited Company
  • Independent auditor’s report and Board report must be concerned
  • DSC of Director (Digital Signature Certificate of the Directors)
  • Accurate and active DSC of one of the directors must be provided and presented

Procedure for Public Limited Company Compliances in India

The procedure for Public Limited Company compliances in India involves several steps to ensure legal adherence and regulatory requirements. Here is a summary based on the provided search results:

Annual Compliance Requirements:

  • Conducting an Annual General Meeting (AGM) as per the Companies Act, 2013.
  • Filing Financial Statements, Director’s Report, Cash Flow Statement, Auditor’s Report, and consolidated Financial Statement.
  • Submitting Annual Return information about directors and shareholders.
  • Adopting Financial and Director’s Report.
  • Filing Income Tax Returns before the due date.
  • Submitting Secretarial Audit Reports for companies meeting specific criteria.
  • Complying with SEBI regulations for listed companies.

Event-Based Compliances:

  1. Making alterations in the Memorandum of Association or Articles of Association.
  2. Updating changes in the registered office address or other significant events

Registration Process:

  • Meeting legal requirements like the number of directors, shareholders, and paid-up share capital.
  • Obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for directors.
  • Registering a proper address as the company’s registered office.
  • Getting the company name approved by the Registrar of Companies (ROC) with the word “Limited” at the end.
  • Executing the Memorandum of Association (MoA) and Articles of Association (AoA).
  • Submitting all necessary documents to the ROC for verification.
  • Receiving the Certificate of Incorporation (COI) from the ROC.
  • Applying for a certificate of commencement within 180 days of COI issuance

These steps outline the essential procedures for ensuring compliance and registration of a Public Limited Company in India, encompassing both annual and event-based requirements along with the registration process.

Why believe in Kompany Services? 

At Kompany Services, we acknowledge the significant importance of annual compliance for a public limited company and its profound influence on the success of your business. Our team of highly experienced professionals is committed to assisting you in reaching new levels of accomplishment and propelling your business forward. By partnering with us, you gain access to top-notch expertise and a sophisticated system.

FAQs – Annual Compliance for Public Limited Companies in India

What are annual compliances for a public limited company in India?

Annual compliances for public limited companies in India include filing various forms and reports with regulatory authorities such as the Ministry of Corporate Affairs (MCA). These compliances ensure that the company operates in accordance with legal regulations and maintains transparency.

What are some key annual compliance requirements for public limited companies?

Key annual compliance requirements for public limited companies in India may include filing annual returns, conducting annual general meetings (AGMs), maintaining statutory registers and records, appointing auditors, and adhering to corporate governance norms.

When should annual compliances be completed for a public limited company?

Annual compliances for a public limited company typically need to be completed within specific deadlines set by regulatory authorities. For example, annual returns must be filed within 60 days from the date of the AGM.

What happens if a public limited company fails to comply with annual requirements?

Failure to comply with annual requirements can lead to penalties, fines, or legal actions against the company and its directors. Non-compliance can also tarnish the company’s reputation and affect its ability to conduct business smoothly.

How can a public limited company ensure timely and accurate annual compliances?

Engaging professional services or consulting firms specializing in corporate compliance can help ensure timely and accurate annual compliances. These experts assist in understanding regulatory requirements, preparing necessary documents, and filing them with the relevant authorities.

Can annual compliance services be outsourced by public limited companies?

Yes, public limited companies can outsource annual compliance services to specialized firms or professionals. Outsourcing allows companies to focus on their core business activities while ensuring that their compliance obligations are met efficiently.

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