Complete Compliance Guide for Private Limited Companies in India
Complete Compliance Guide for Private Limited Companies in India
Blog Article
???? Complete Compliance Guide for Private Limited Companies in India
Including PF, ESIC, IEC, ICEGATE, AD Code, and IFSC Code
A Private Limited Company (Pvt Ltd) is a widely used business structure in India, especially for startups and growing enterprises. It provides numerous benefits including limited liability, ease of ownership transfer, better access to funding, and a separate legal identity. However, with these benefits comes the responsibility of maintaining ongoing statutory and regulatory compliance.
This guide provides a structured overview of key annual and event-based compliances every Private Limited Company must follow. It also covers important employer-related compliances such as PF and ESIC, and export-related registrations like IEC, ICEGATE, AD Code, and IFSC Code.
???? 1. Post-Incorporation Compliances
✅ Filing of Form INC-20A – Certificate of Commencement of Business
Companies incorporated with share capital must file Form INC-20A within 180 days of incorporation. This filing confirms that the company has received the subscribed capital from its shareholders and has commenced business operations.
Non-compliance penalties include monetary fines and the possibility of company strike-off by the Registrar of Companies.
✅ Appointment of Auditor – Filing of Form ADT-1
A Private Limited Company must appoint its first statutory auditor within 30 days of incorporation. The appointment must be reported to the Registrar using Form ADT-1. The auditor must be a practicing Chartered Accountant or a firm of CAs.
???? 2. Annual Compliances Under Companies Act, 2013
✅ Financial Statements – Form AOC-4
Every company is required to prepare financial statements and file them with the Registrar of Companies (ROC) annually in Form AOC-4 within 30 days of holding the Annual General Meeting (AGM).
✅ Annual Return – Form MGT-7 or MGT-7A
The company must file an annual return containing details of shareholding, directorship, etc., within 60 days of the AGM. Small companies and OPCs file MGT-7A, while others use MGT-7.
✅ Holding of Annual General Meeting (AGM)
Every Private Limited Company, except OPCs, must hold an AGM within six months from the end of the financial year, but not later than nine months from the close of the first financial year.
???? 3. Income Tax Compliances
✅ Filing of here Income Tax Return – ITR-6
Every Private Limited Company, other than those claiming exemption under Section 11, must file an income tax return in Form ITR-6 by October 31st of the assessment year.
✅ Tax Audit (If Applicable)
If the company's turnover exceeds the prescribed threshold (₹1 crore for business or ₹50 lakh for professionals), a tax audit under Section 44AB may be applicable.
???? 4. TDS Compliances
Companies deducting tax at source (TDS) must:
Deduct TDS as per applicable sections (194C, 194J, etc.)
Deposit TDS by the 7th of the following month
File quarterly TDS returns (Forms 24Q, 26Q, 27Q) on time
Issue TDS certificates to deductees (Form 16/16A)
???? 5. GST Compliances
Companies with GST registration must:
File GSTR-1 for outward supplies monthly or quarterly
File GSTR-3B summarizing liabilities and ITC
Reconcile GSTR filings with books and inward returns
Respond to notices from the GST department, if any
???? 6. Payroll Compliance – PF and ESIC
✅ Provident Fund (PF)
Mandatory for companies with 20 or more employees. Both employer and employee contribute 12% of basic wages. Monthly returns must be filed, and payments made via the EPFO portal.
✅ Employee State Insurance (ESIC)
Applicable if employees earn ₹21,000 or less per month. The employer contributes 3.25%, and the employee contributes 0.75%. Monthly returns must be filed via the ESIC portal.
???? 7. Exporter Registrations (For Companies Involved in International Trade)
✅ Import Export Code (IEC)
Issued by the DGFT, the IEC is mandatory for any business involved in export or import. It is a one-time registration with lifetime validity.
✅ ICEGATE Registration
Required to interact with Indian Customs for document submission, shipping bills, and BOE tracking. ICEGATE serves as the digital platform for customs-related activities.
✅ AD Code Registration
An AD (Authorised Dealer) Code is issued by the company’s bank and must be registered with customs at each port of export. It ensures foreign currency proceeds are routed through the correct bank account.
✅ IFSC Code Declaration
The bank IFSC code of the exporter's current account must be declared to DGFT and ICEGATE to ensure smooth credit of export payments and regulatory reporting.
???? 8. Other Important Compliances
DIR-3 KYC – Directors must update KYC details every financial year
DPT-3 – Mandatory annual filing regarding outstanding loans, deposits, etc.
MSME-1 – Reporting of outstanding dues to Micro and Small Enterprises (twice yearly)
Board and General Meeting Documentation – Minutes and resolutions must be properly recorded and maintained
???? About the Author
This article is presented by Akhil Amit & Associates, a Chartered Accountancy firm based in Pune, India. We offer comprehensive services for Private Limited Companies including incorporation, tax compliance, GST filings, audit, and export-related advisory.
To know more, visit our website: https://akhilamitassociates.com
You may also view our professional profile and client reviews here: https://g.co/kgs/FaaDHjt
✍️ Final Thoughts
Staying compliant with statutory, tax, and regulatory frameworks is crucial for every Private Limited Company in India. Whether you are hiring employees, expanding internationally, or managing annual filings—each step comes with defined compliance responsibilities.
It is always advisable to maintain a compliance calendar, engage qualified professionals, and ensure timely filings to avoid penalties and ensure uninterrupted business operations.
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