Private Limited Company Registration in India- What one should know?
Private Limited Company Registration
Congrats for your new private limited
company registration in India. However, are you
aware of the fact that the taxation and regulatory compliance in India are
quite cumbersome and any noncompliance of rules and regulations may lead to
unnecessary interest and penalty and in some cases, even lead to imprisonment?
1) Therefore, it is very important for every Directors and officers of the company to keep note of various compliances to be done post company registration in India.
6) In case of subsidiary
company registration in India, receipt of FDI from parent company
in the Indian company’s bank account, need to be intimated to RBI by filing
prescribed forms within prescribed time limits.
7) Take state specific
registration or product or service specific registration. Like for instance,
some states require registration under shop and establishment act, some state
requires trade license. Similarly, dealing in drugs and medicines, license from
respective authorities are required, for dealing in storage of food items,
FSSAI license are required and so on and so forth.
Having done the
aforesaid work within time, following additional compliances should be kept in
mind by every private limited companies.
Post company registration in India, every Company need to do the
following compliances every year :
- Filing of GST returns-
Every company is required to file 2 GST
returns per month and in case of annual turnover of more than Rs 5 crore, one
annual GST return is also required to be filed. So, in total, approx. 25 GST
returns are required to be filed every year.
- Filing of TDS returns
Every company is required to file 2 TDS
returns after end of each quarter; therefore, total 8 TDS returns are required
to be filed in a year.
- Filing of ROC returns
Every year, annual returns in form AOC-4 and
MGT7 are required to be filed with ROC. Besides above, some other returns like
MSME, DPT-4, Director KYC returns are required to be filed with ROC. This
results in filling approx. 6 to 8 ROC returns in a year.
- Secretarial Compliance
Every company needs to hold 4 board meetings
(BM) in a year and one annual general meeting (AGM) in a year. Also, notice of the BM and AGMs need to be
given within time. Further, statutory records, register and minute book of
meetings need to be maintained.
- Audits
Every company has to conduct statutory audits
also called as financial audits irrespective of the turnover of the company
through practicing CAs.. Further, Tax audit is also required to be conducted
through practicing CAs in case total turnover increases the prescribed
threshold limits. In case of international transactions between associated
enterprises, Transfer pricing audit is also required to be conducted. Further,
in case taxable value increases Rs 5 crore in a year, GST audits are also
required to be conducted.
- Tax Return Filing
Every company is required to compute its tax
liability and do tax return filing on or before the due dates. It may be noted that Income tax
return needs to be filed even in case of loss return or nil income.
Non Compliance of aforesaid provisions will attract penalty and interest
from revenue authorities. Also, it may be noted that most of the aforesaid
compliances are compulsory even if there are no sales or very less sales in the
company.
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