Annual Compliance for Private Limited Company in Coimbatore

Running a Private Limited Company in Coimbatore or anywhere in India requires fulfilling a set of legal obligations annually. Annual compliance ensures that the company adheres to the regulations set by the Ministry of Corporate Affairs (MCA) and other statutory bodies. Non-compliance can lead to penalties, fines, or even the disqualification of directors. This article outlines the key annual compliance requirements for a Private Limited Company in Coimbatore.

1. Mandatory Annual Filings with the Registrar of Companies (ROC)

Every Private Limited Company in Coimbatore must file the following forms with the ROC annually:

Annual Return (Form MGT-7): The company must file its annual return within 60 days of the Annual General Meeting (AGM). It contains details such as the company’s shareholding structure, directors, and key managerial personnel.
Financial Statements (Form AOC-4): The company must file its audited financial statements, including the Balance Sheet, Profit & Loss Account, and Director’s Report, within 30 days of the AGM.
Director’s Report: The Director’s Report must be prepared and attached to the financial statements. It includes details about the company’s performance, dividends, and corporate social responsibility (CSR) activities.

2. Conducting Annual General Meeting (AGM)

Every Private Limited Company must hold an AGM within six months from the end of the financial year (i.e., by September 30th for companies following the April-March financial year). During the AGM, the following matters are typically discussed:

Approval of financial statements.
Declaration of dividends.
Appointment or reappointment of auditors.
Any other business as per the company’s requirements.

3. Appointment of Auditors

The company must appoint an auditor within 30 days of incorporation. The auditor’s appointment must be ratified at every AGM. The auditor is responsible for auditing the company’s financial statements and ensuring compliance with accounting standards.

4. Income Tax Compliance

Filing Income Tax Returns (ITR): The company must file its income tax return by September 30th (if no audit is required) or October 31st (if an audit is required).
Tax Audit (if applicable): Companies with a turnover exceeding ₹ one crore (or ₹50 lakhs for professionals) must undergo a tax audit under Section 44AB of the Income Tax Act.
Advance Tax Payments: Companies are required to pay advance tax in four instalments (June, September, December, and March) if their tax liability exceeds ₹10,000 in a financial year.

5. Maintenance of Statutory Registers and Records

Private Limited Companies must maintain various statutory registers, including:

Register of Members
Register of Directors
Register of Charges
Register of Shares
Minutes of Board Meetings and AGMs

These registers must be updated regularly and kept at the company’s registered office in Coimbatore.

6. Compliance with Goods and Services Tax (GST)

If the company is registered under GST, it must file the following returns annually:

GSTR-9 (Annual Return): This return consolidates the details of all monthly/quarterly returns filed during the financial year.
GSTR-9C (Reconciliation Statement): Companies with a turnover exceeding ₹2 crores must file a reconciliation statement certified by a Chartered Accountant or Cost Accountant.

If the company has employees, it must comply with the following:

Employees’ Provident Fund (EPF): Monthly contributions must be deposited with the EPFO.
Employees’ State Insurance (ESI): Applicable if the company has more than 10 employees.
Professional Tax: Deducted from employees’ salaries and deposited with the state government.
Payment of Gratuity: Applicable if the company has more than 10 employees.

If the company meets the following criteria, it must comply with CSR provisions under the Companies Act, 2013:

Net worth of ₹500 crores or more, or
Turnover of ₹1,000 crores or more, or
Net profit of ₹5 crores or more.

The company must form a CSR committee and spend at least 2% of its average net profit on CSR activities.

9. Director’s KYC (DIR-3 KYC)

Every company director must file the DIR-3 KYC form with the MCA annually. This is mandatory for all directors, including those without a DIN (Director Identification Number).

10. Penalties for Non-Compliance

Failure to comply with the annual compliance requirements can result in:

Late filing fees.
Penalties range from ₹200 to ₹1,000 per day.
Disqualification of directors.
Striking off the company’s name from the ROC register.

Conclusion

Annual compliance is critical to running a Private Limited Company in Coimbatore. It ensures transparency, accountability, and good corporate governance. Companies are advised to engage professional services, such as Chartered Accountants or Company Secretaries, to ensure timely and accurate compliance.