Annual Compliances for Various Business Entities in India
A) Annual Compliance for Indian Private Limited Company
Definition: A Private Limited Company is a separate legal entity registered under the Companies Act, 2013. It is required to comply with various regulatory requirements to ensure smooth operations.
Annual ROC Compliance Requirements:
- Annual Return (Form MGT-7):Filed within 60 days of the AGM.
- Financial Statements (Form AOC-4):Filed within 30 days of the AGM.
- Annual General Meeting (AGM):Conducted annually within 6 months of the financial year-end.
- Director KYC (Form DIR-3 KYC):Mandatory filing for all directors annually.
- Auditor Appointment (Form ADT-1):Filed within 15 days of the AGM for auditor appointment/reappointment.
- Statutory Audit:Conducted by a Chartered Accountant annually.
Income Tax Compliance:
- Income Tax Return (ITR Filing):By October 31st (if audited).
- Tax Audit Report (Form 3CD/3CB-3CD):Required if turnover exceeds prescribed limits.
- GST Returns:Monthly/quarterly filings and Annual GST Return (GSTR-9) filing by December 31st.
- TDS Filings:Quarterly TDS returns (Form 24Q/26Q).
Additional Compliances (if applicable):
- Secretarial Compliance Report (Listed/Big Companies):Form MGT-8.
- Form DPT-3 (Deposit Return):Required if the company has outstanding loans or deposits.
- Form MSME-1:Half-yearly filing for outstanding payments to MSMEs.
- Form BEN-2 (Significant Beneficial Ownership):If applicable.
B) Annual Compliance for Subsidiary Companies
Definition: A private limited company owned by foreign nationals or entities operates under the same laws as domestic private limited companies, with additional FEMA reporting obligations.
Annual ROC Compliance Requirements:
– Annual Return (Form MGT-7):
Filed within 60 days of the AGM.
– Financial Statements (Form AOC-4):
Filed within 30 days of the AGM.
– Director KYC (Form DIR-3 KYC):
Filed annually for all directors.
– FEMA Reporting:
Form FC-GPR and Annual FLA Return.
Income Tax Compliance:
– Annual filing of ITR by October 31st (for audited cases).
– GST and TDS filings if applicable.
C) Annual Compliance for Private Limited Company Owned by Foreigners
Definition: A private limited company owned by foreign nationals or entities operates under the same laws as domestic private limited companies, with additional FEMA reporting obligations.
Annual ROC Compliance Requirements:
– Annual Return (Form MGT-7): Filed within 60 days of the AGM.
– Financial Statements (Form AOC-4): Filed within 30 days of the AGM.
– Director KYC (Form DIR-3 KYC): Filed annually for all directors.
– FEMA Reporting: Form FC-GPR and Annual FLA Return.
Income Tax Compliance:
– Annual filing of ITR by October 31st (for audited cases).
– GST and TDS filings if applicable.
D) Annual Compliance for Liaison Office
Definition: A Liaison Office is a representative office of a foreign company that operates as a communication channel and does not generate income in India.
Annual ROC Compliance Requirements:
– Annual Activity Certificate (AAC): Certified by a Chartered Accountant and submitted to the RBI by September 30th.
– Financial Statements Filing: Filed with the ROC within 6 months of the financial year-end.
– Income Tax Filing: Submit NIL returns unless taxable income is generated.
– Audit of Accounts: Accounts must be audited annually by a Chartered Accountant.
E) Annual Compliance for Branch Office
Definition: A Branch Office is an extension of a foreign company, allowed to generate revenue from activities specified in its RBI approval.
Annual ROC Compliance Requirements:
– Annual Activity Certificate (AAC): Certified by a Chartered Accountant and submitted to the RBI by September 30th.
– Financial Statements Filing: Filed with the ROC within 6 months of the financial year-end.
– Income Tax Filing: Tax return filing deadline: October 31st (if audited).
– Audit of Accounts: Statutory audit of financials by a Chartered Accountant.
– GST Compliance: File monthly and annual GST returns if applicable.
– FEMA Reporting: All funds repatriated to the parent company must be reported to the RBI.
Comparison Table: Annual Compliances
Annual Compliance Requirements for Various Business Entities in India
Maintaining annual compliance with the Registrar of Companies (ROC) and other statutory bodies is a legal requirement for all registered business entities in India. Non-compliance can result in penalties, fines, and even disqualification of directors or closure of the business. This document provides a comprehensive breakdown of annual compliance requirements for Indian private limited companies, subsidiary companies, private limited companies owned by foreigners, liaison offices, and branch offices.
Feature | Indian Private Ltd Company | Subsidiary | Foreign-Owned Pvt Ltd | Liaison Office | Branch Office |
Annual Return Filing | MGT-7 | MGT-7 | MGT-7 | Not Applicable | Not Applicable |
Financial Statements Filing | AOC-4 | AOC-4 | AOC-4 | FC-3 & FC-4 : Yes (with ROC) | FC-3 & FC-4 : Yes (with ROC) |
Income Tax Filing | Yes | Yes | Yes | Nil Returns | Yes |
FEMA Reporting | Not Applicable | FC-GPR, FLA | FC-GPR, FLA | Annual Activity Certificate | Annual Activity Certificate |
Audit Requirement | Statutory Audit | Statutory Audit | Statutory Audit | Yes | Yes |
GST Compliance | Yes (if applicable) | Yes | Yes | RCM (if applicable) | Yes |
Annual Activity Certificate | Not Applicable | No | No | Yes (RBI) | Yes (RBI) |