Hope your entrepreneurial journey has been rewarding for you in last financial year, and thank you for making your contribution to build corporate India. While you have already mastered how to successfully manage day to day operations of your business, it is important that you comply with statutory requirements. Annual compliances are mandatory requirement for any Private Limited Company, and not doing so can result in penalties. Also, non-functioning companies or companies with no activity are also required to file annual return at the end of each financial year.

Annual compliances with respect to Private Limited companies are due for the financial Year 2017 – 18 from September, 2018. Let LegalWIz.in help your Private Limited Company to stay Compliant. Here, know the due dates for your reference and to safeguard the company from late filings.

The annual compliances are now due for the companies incorporated on or before 31st of December, 2017. First step is to hold the Annual General Meeting of the member which is followed by annual filing requirements.

  • The companies closing their first financial year:

The Annual General Meeting is advised to be conducted by 30th September, 2018 and no later than 31st December 2018.

  • The companies closing subsequent financial year:

The Annual General Meeting is advised to be conducted by 30th September, 2018 and no later than 15 months of holding of previous AGM)

The additional compliance requirements for F.Y. 2017-18 are as followed:

Compliance Detail

Due Date

For Company closing its Subsequent Financial YearFor Company closing its First Financial Year
Income Tax Return Filing31st October, 2018

(as extended)

31st October, 2018

(as extended)

Holding Annual General MeetingLatest by 30th September, 2018

(no later than 15 months of previous AGM)

No later than 31st December, 2018

(Within 9 months of financial year end

ADT – 1 (Auditor’s Appointment)14th October, 201814th January, 2019
AOC – 4 (Financial Statements)31st December, 2018 (as extended)*29th January, 2019

(Within 30 days of AGM)

MGT – 7 (Annual Return)31st December, 2018 (as extended)*28th February, 2019

(Within 60 days of AGM)

*MCA has notified the relaxation in additional fee for filing annual compliance upto 31st December, 2018. The due dates being later for the company closing its first financial year, it does not affect those companies.

Penalties: A Company is required to file its balance sheet, profit and loss account, auditor’s report and annual return every financial year before the due date with the registrar of companies. Non-compliance with this provision will attract additional Government fee of Rs 100 per day while filing the e-Form, which is collected for every day till the actual date of filing.  Further, non-compliant with Income Tax filing, will restrict you from carrying forward the losses of the company.

As mentioned, MCA has relaxed the additional fee for e-form AOC-4 and MGT-7 (for F.Y. 2017-18) upto 31st December, 2018.

As stated earlier, the default in filing may lead to additional penalties as well as penalties. Consequences of no filing are severe in nature of economics as well as affecting the status of the company and its directors:

  • Penalty to company:

The company which fails to file the annual return is punishable with the fine not less than Rs 50,000 but which may extend to the amount of Rs 500,000.

Further, the continuous failure of three years may lead to consequences of addition of company’s name into default list by RoC. Also, leading to strike – off the name of the company from Register of Companies can be caused at the discretion of Registrar.

  • Penalties to directors:

The every office in default i.e. responsible for the compliances (directors) are fined with fine not less than Rs 50,000 but which may extend to the amount of Rs 500,000; or imprisonment for a term which may extend to six months; or both.

In addition to penalties, continuous non-compliance for three years disqualifies the directors of the company to be to be appointed as director in another company for a period of five years from the date on which the failure of annual compliance persist.