A company which is privately held for small businesses is known as a private limited company. The liability of the members of a private limited company is limited to the number of shares they hold. These shares cannot be traded publicly. The Government of India has certain legal and regulatory requirements that every private limited company must fulfill or the Ministry of Corporate Affairs (MCA) can remove the name of the company from the register or disqualify a director for non-compliance of any of these requirements. Companies that fail to comply will be penalized for every day that the default period continues. Here is a handy checklist of all the mandatory compliance of a private limited company.
| Mandatory Compliance | Description |
| First Board Meeting | · First meeting of Board of Directors to be held within 30 days post incorporation of the private limited company · Every director should be sent a notice of the board meeting 7 days in advance |
| Successive Board Meetings | · At least 4 board meetings should be held in a year with a maximum gap of 120 days in between meetings |
| Filing of Disclosure of interest by Directors | · Every Director of the company in the first meeting of the Board of Directors in each financial year needs to disclose his interest in other entities by filing the Form MBP-1 · A fresh MBP-1 needs to be filed, whenever there is a change in his interest from the earlier given Form MBP-1 |
| First Auditor | · The Board of Directors will appoint the First Auditor within 30 days post incorporation of the private limited company · The First Auditor will hold this post till the conclusion of the first Annual General Meeting · It is mandatory for a private limited company to file Form ADT-1 for a First Auditor appointment |
| Successive Auditor | · The Board of Directors have to appoint the appoint the Auditor in the first Annual General Meeting of the company · The Auditor will hold this post till the conclusion of the sixth Annual General Meeting and will inform the ROC by filing Form ADT-1 · Form ADT-1 should be filed within 15 days from the date of the Annual General Meeting and the responsibility for filing Form ADT-1 lies with the company |
| Annual General Meeting | · The Annual General Meeting is mandated to be held within 6 months from the end of the financial year business hours, not on a public holiday and at the registered office address or in the city, town or village where the registered office is located · 21 clear days’ notice is compulsorily given for the same |
| Annual Return Filing (Form MGT-7) | · Annual Return has to be filed within 60 days of the date of the Annual General Meeting · The return period will be 1st April to 31st March |
| Financial Statement Filing (Form AOC-4) | · Balance Sheet with Profit and Loss Account statement and Director Report have to be filed in this form within 30 days of the Annual General Meeting |
| Statutory Audit of Accounts | · All companies, by mandate, have to prepare and get their accounts audited by a chartered accountant at the end of the financial year · An Audit Report and Audited Financial Statements will be presented by the Auditor for filing it with the Registrar |
| Director KYC application | · Form DIR-3 KYC has to be filed on or before 30th April of the successive financial year |
| Active Company Tagging Identities and Verification | · Form INC-22A has to be filed on or before 25th April, 2019 (For all private limited companies registered before 31st December, 2017) |
| Declaration of Commencement of Business | · Form INC-20A has to be filed within 180 days post incorporation of a private limited company (For all companies incorporated after 2nd November, 2018) |
