Compliance checklist for New Businesses & Startups
- Posted on May 6, 2019
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- By Deep Patel
A business/startup running as LLP/Private Limited company in India, has to follow many compliance laid down by various regulatory bodies.
These compliance include periodic filing of tax and other returns, holding the board and other meetings, maintaining statutory books and accounts etc. Non-compliance can attract penalties and may also bring an end to business in extreme cases.
The compliance can be divided in 2 types
1. Registrar related Compliance
2. Non-Registrar compliance
Registrar Related Compliance
The table below is checklist of compliance
(Note: The below checklist is applicable for private limited companies, particularly Small Companies with paid up capital of upto Rs. 50Lakh or having annual turnover in last year below Rs. 2Cr.)
| Appointment of Auditor
(E-form ADT-1) |
* First Statutory Auditor has to be appointed within 30 days of incorporation in first board meeting
* Subsequent auditors will be appointed for 5 years in AGM. |
Form ADT-1 is filed for a 5-year appointment. After that every year in AGM, Shareholder ratify the Auditor but there is no need to file ADT-1. |
| Holding Board Meeting | * First meeting within 30 days of incorporation* Minimum 2 meetings, one in each half calendar year. | Minimum gap of 90 days is required between 2 meetings (ignore if more than 2 meetings held during the year) |
| Holding Annual General Meeting(AGM) | One AGM | Maximum gap of 15 months between 2 AGMs |
| E- Forms Filing Requirements | E-form: MGT-7 File Annual Return within 60 days of holding of AGM for the period 1st April to 31st March. | |
| E-form: AOC-4 File Financial Statement: i.e Balance Sheet along with Statement of Profit and Loss Account and Directors’ Report | ||
| Form MBP- 1 Every Director of the Company in First Meeting of the Board of Director in each Financial Year needs to disclose his interest in other entities by filing the form | Fresh MBP-1 needs to be filed, whenever there is change in his interest from the earlier given MBP-1 | |
| Form DIR – 8 Every Director of the Company in each Financial Year has to file with the Company disclosure of non-disqualification | ||
| Directors’ Report | Directors’ Report is to be filed covering all the information required for Small Company under Section 134. | It should be signed by the “Chairperson” authorized by the Board, where he is not so authorized by at least 2 Directors. |
| Statutory registers and books of accounts | 1)Statutory Registers2)Minutes Book
* Board Meeting Minutes Book * General Meeting Minutes Book (i.e. AGM, EGM, Postal Ballot, Creditors Meetings, Debenture holders Meetings) 3. Books of Accounts/Financial Statements(section 44aa) 4)Register of Directors Attendance at Board/Committee Meetings. |
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| Circulation of Financial Statement & other relevant Docs | Company will send to the members of the Company approved Financial Statement, Directors’ Report and Auditor’s’ Report at least 21 clear days before the Annual General Meeting. | |
| Other Event based Compliance |
Other than these compliance, there are complinace which are based on different events in the journey of the company. These can be read here: |
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Non-Registrar Related Compliance
- Payment of periodic dues including TDS & TCS
- Periodic GST Returns (Monthly/Quarterly/Annually as applicable)
- Quarterly TDS Returns
- Assessment of advance tax liability and payment of advance tax periodically
- Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)
- Filing of Tax Audit Report Annually
- Regulatory Assessment of business under different acts of law (Eg. Environment and Protection Act, Money Laundering Act, Factory Act etc.)
Often the Business Owners/Directors miss out on compliance and end up playing penalties. It is always good to have a professional guidance.
Also read, Manage all your GST Compliance using Zybra
- Posted on May 6, 2019
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- By Deep Patel
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- 0 Comments
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