Annual compliances for a private company based on turnover

Businesses are required to stay compliant when they are in the market. Of all the business structure out there, when you opt for private limited company registration online, its compliance form a crucial part that can define its success. There are plenty of options by which you can choose the right and suitable business structure for your new business but since the benefits are aplenty of a private company structure, most entrepreneurs prefers it over other structures.

This blog deals with the annual compliances of a private limited company which varies based the business turnover. This include annual compliances based on turnover where the income range defines what an entity must do.

Certain annual compliances for a private company

– Clearly, operating a business in the form of a company is not something to be undertaken carelessly. 

– Compliance is not only about doing the right thing or ticking a box, but it is the way of working and part of the business. 

One thing you should keep in mind that the cost of non-compliance always goes beyond the cost of compliance. 

Compliance when turnover goes beyond Rs. 20 crores

Serial number	Compliance	Time span
1	Cash flow statement along with financial statement	The cash flow statement must report  cash flows during the span classified by investing, operating and financing activities.
2	Form AOC-4	Submitting financial statement and other documents with the registrar for the FY (financial year) ended.
3	Signing of PCS or CS in the annual returns (MGT-7)	Within two months of the annual general meeting (AGM).

Compliance when turnover goes beyond Rs. 100 crores

Serial number	Compliance	Time span and requirements
1	Cash flow statement along with financial statement	The cash flow statement must report cash flows during the time classified by investing, operating and financial activities.
2	Submission of financial statements in form AOC-4 XBRL	Within one month of the annual general meeting (AGM).
3	Annual return certification in form MGT-8	Attachment in the form MGT-7. MGT-7 is needed to be submitted within two months of annual general meeting (AGM).

Compliance when turnover goes beyond Rs. 200 crores

Serial number	Compliance	Time span and requirement
1	Cash flow statement along with the financial statement	The cash flow statement must report cash flows during the period classified by investing, operating, and financing activities.
2	Submission of financial statement in form AOC-4 XBRL	Within one month of the annual general meeting (AGM).
3	Annual return certification in the form MGT-8	Attachment in form MGT-7. MGT-7 is needed to be submitted within two months of the annual general meeting (AGM).
4	Appointing the internal auditor	Internal audit is for checking the evaluation of risk management and to make sure that risk management processes are effective, efficient, compliant and secure. It is basis check of internal control of the organization. An internal audit is an organizational move to ensure, check, monitor and analyse its own business operations in order to determine how well it abides to set of specific criteria.

Compliance when turnover goes beyond Rs. 1000 crores

Serial number	Compliance	Time span and requirement
1	Cash flow statement along with the financial statement	The cash flow statement must report cash flows during the time classified by investing, operating and financing activities.
2	Submission of financial statements in form AOC-4	Within one month of the annual general meeting (AGM).
3	Annual returns certification in the form MGT-8	Attachment in form MGT-7. MGT-7 is needed to be submitted within two months of the annual general meeting (AGM).
4	Appointing the internal auditor	Internal audit is for checking the evaluation of risk management and to make sure that risk management processes are effective, efficient, compliant and secure. It is basis check of internal control of the organization. An internal audit is an organizational move to ensure, check, monitor and analyse its own business operations in order to determine how well it abides to set of specific criteria.
5	Constitution of the CSR committee	It requires minimum three or more directors to set up the CSR committee. Among those three directors, at least one director has to be an independent director. An unlisted public company or private company should have its CSR committee without any independent director if an independent director is not needed or required.

Each corporation is required to maintain a sign outside its registered office regardless of its turnover. The board should include the company’s name and registered address. The board shall show details in both English and the regional language.

However, it should ensure that the company’s letterhead and invoices include the company’s full name, registered address, telephone number, corporate identification number, and email ID. The company’s name should be printed in the header, and its CIN number, registered office address, and email address should be printed in the footer.

• Each company’s official website must provide the following details on its landing or home page.

• The company’s name; • The address of its office address; • The company’s corporate identity number; • The company’s e-mail address; and • The name of the individual who should be contacted in the event of any inquiries or complaints.