Compliance360 Services

Yes! Absolutely mandatory. Even dormant/non-operating companies must comply with:

✅ Mandatory Annual Filings:
• Annual Return (Form MGT-7): Filed within 60 days of AGM
• Financial Statements (Form AOC-4): Filed within 30 days of AGM
• Director's Report: Attached with financials
• Income Tax Return: Even if zero income (ITR-6)

✅ Board Meetings:
• Minimum 2 meetings per year
• Gap between meetings ≤ 120 days

✅ Statutory Registers:
• Maintain updated registers
• Keep at registered office

⚠️ Consequences of Non-Compliance:
• Late filing fees: ₹100 per day (per form)
• Additional fee: Up to ₹1 lakh
• Director disqualification after 3 years
• Company may be declared 'defunct'
• Bank accounts frozen

📊 Annual Compliance Checklist for Private Limited Company:

🔹 ROC (Registrar of Companies) Compliances:
• Form MGT-7: Annual Return (within 60 days of AGM)
• Form AOC-4: Financial Statements (within 30 days of AGM)
• Form DIR-3 KYC: Director KYC (by September 30)
• Form DPT-3: Return of Deposits (by June 30)
• Form MSME-1: Half-yearly return (if MSME dues outstanding)

🔹 Income Tax Compliances:
• ITR-6: Company Income Tax Return (by October 31)
• Tax Audit: If turnover > ₹1 crore (by September 30)
• Advance Tax: 4 instalments (June, Sept, Dec, March)
• TCS/TDS Returns: Quarterly filings

🔹 GST Compliances (if registered):
• GSTR-1: Monthly/Quarterly outward supplies
• GSTR-3B: Monthly/Quarterly summary return
• GSTR-9: Annual Return (by December 31)
• GSTR-9C: Reconciliation (if turnover > ₹5 crore)

🔹 Other Statutory Compliances:
• Professional Tax: State-wise registration & returns
• ESIC/EPF: If applicable
• Shop & Establishment Act: As per state
• FEMA: For foreign transactions

🌍 FEMA (Foreign Exchange Management Act) Compliances:

🔹 For Companies with Foreign Investment:
• FC-GPR: Report receipt of foreign investment within 30 days
• FC-TRS: Report transfer of shares between resident/non-resident
• Annual Return on Foreign Liabilities (FLA): By July 15 every year
• ESOP Reporting: For employee stock options to non-residents

🔹 For Outbound Investments:
• ODI Reporting: Overseas Direct Investment reporting
• Form OPI: Annual Performance Report for overseas JV/subsidiary
• Form APR: Annual Return on foreign assets

🔹 For External Commercial Borrowings (ECB):
• Form ECB-2: Monthly return on ECB
• Form ECB: Annual return on ECB

🔹 For Foreign Trade:
• Export Declaration: EDF/Soft copy submission
• Realization Certificate: For export proceeds
• Import Documents: Maintenance as per FEMA

⚠️ Penalties for Non-Compliance:
• Up to 3 times the contravention amount
• ₹10,000 per day for continued failure
• Prosecution under FEMA regulations

💰 Penalty Structure for Various Non-Compliances:

🔹 ROC Late Filing Fees:
• Basic Fee: ₹100 per day per form
• Additional Fee: Up to ₹1,00,000 based on delay
• Director Disqualification: After 3 years continuous default

🔹 Income Tax Penalties:
• Late ITR Filing: ₹5,000 (₹1,000 if income ≤ ₹5 lakh)
• Tax Audit Delay: 0.5% of turnover (max ₹1.5 lakh)
• Advance Tax Default: 1% simple interest per month

🔹 GST Penalties:
• Late Return Filing: ₹50/day (CGST + SGST = ₹100/day)
• Nil Return Delay: ₹20/day (₹40/day total)
• Annual Return Delay: ₹200/day (₹100 CGST + ₹100 SGST)

🔹 Other Penalties:
• TDS Default: ₹200/day until compliance
• MSME Delay: Interest @ 3 times bank rate
• FEMA Violations: Up to 3 times contravention amount

💡 Pro Tip: Regular compliance costs less than penalty payments!

💵 Typical Annual Compliance Costs (Approximate):

🔸 Basic Operational Company (Turnover < ₹1 crore):
• Professional Fees: ₹20,000 - ₹40,000
• Audit Fees: ₹10,000 - ₹25,000
• ROC Filing Fees: ₹2,000 - ₹5,000
• Total: ₹32,000 - ₹70,000/year

🔸 Medium Company (Turnover ₹1-10 crore):
• Professional Fees: ₹40,000 - ₹80,000
• Tax Audit Fees: ₹25,000 - ₹50,000
• GST Compliance: ₹15,000 - ₹30,000
• Total: ₹80,000 - ₹1,60,000/year

🔸 Large Company (Turnover > ₹10 crore):
• Professional Fees: ₹1,00,000 - ₹3,00,000+
• Statutory Audit: ₹50,000 - ₹2,00,000+
• Tax & GST: ₹50,000 - ₹1,50,000
• Total: ₹2,00,000 - ₹6,50,000+/year

📝 Note: Costs vary based on transaction volume, complexity, and service provider.