Annual Compliance for Private Limited Company
A Private Company is a corporate held under private ownership which requires regular filing with the Ministry of Corporate Affairs. For every organization it is obligatory to file an yearly return and audited financial statements including profit and loss statement and balance sheet with MCA for every financial year. The ROC filing is essential without reference to the company's sales whether it is zero or in large numbers. Hence, annual compliances for private limited companies are mandatory for a reputed company.
In order to report the activities performed in each financial year, the due terms for annual filing of a company are based on the occurrence of Annual General Meeting. The Annual General Meeting is usually held within 18 months from the date of incorporation of a company or 9 months from the closure of the financial year whatever is near. .
Benefits of Annual Compliance for Private Limited Company
Avoid being a Defaulter
Regular filing of Annual compliance for a private limited company avoids heavy penalties and additional fees in case of non fulfillment of filing the required forms.
Invitation to Potential Investors
In order to ensure the creditworthiness of the company the potential are highly interested in scrutinizing the financial worth of the organization. An investor can directly request the company or check the regular filing status on MCA portal. Hence, potential investors prefer to invest with a company with regular filing of Annual compliance for Private Limited Company.
Legal compliance is crucial for every organization. Various participants such as investors, ministry tenders and for loan support purposes, the regular filing of annual compliances for a private limited company plays an important criteria to determine the trustworthiness of the company.