An Expert Assisted Annual Compliance
Proprietorship
Services Covered
Proprietorship
Services Covered
Proprietorship
Services Covered
Partnership Firm
Services Covered
Partnership Firm
Services Covered
Partnership Firm
Services Covered
Private Limited Company
Services Covered
Private Limited Company
Services Covered
Private Limited Company
Services Covered
STATUTORY AUDIOTOR FEES IS PAYABLE ON ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER DIGITAL SIGNATURE AND GOVT FEES.
Limited Liability Partnership
Services Covered
Limited Liability Partnership
Services Covered
Limited Liability Partnership
Services Covered
STATUTORY AUDIOTOR FEES IS PAYABLE ON ACTUAL BASIS DIRECTLY TO THE INDEPENDENT AUDITOR APPOINTED BY THE BOARD OF DIRECTORS. FILINGHOUSE WILL ONLY BE RESPONSIBLE FOR ACCOUNTING, PREPARATION OF FINANCIAL STATEMENT AND FILING OF RETURNS ON BEHALF OF THE COMPANY.
THE PLAN DOES NOT COVER DIGITAL SIGNATURE AND GOVT FEES.
Add New Direcor
Services Covered
A Director of a Company is a person that is elected by the shareholders to manage the affairs of the company as per the MOA and AOA. As the company is an artificial person it can only act through the agency of a natural person. Thus, a director has to be a living person and the management of the company is entrusted to its Board of Directors. The appointment of the Directors can be required from time to time based on the requirements of the shareholders of the business.
The Companies Act,2013 defines the term Director as someone who is appointed to the Board of a Company. The Board of Directors is a group of those individuals who are elected by the shareholders of the company to manage the affairs of the company. As a company is an artificial legal person that is created by law, the company can act only through the agency of natural persons. The Directors can only act through Human beings and the Directors through whom the company mainly acts. The Board of Directors is that body of individuals on which the management of a company is entrusted.
According, to the other definitions a Director is someone who administers, controls, or directs something. A Director is someone who supervises, controls, or manages. He is a person who is elected by the shareholders of a company to direct a company's policies; he is a person appointed or elected under the law, and who is authorized to manage and direct the affairs of the Company.
A Managing Director is a director by the virtue of Articles of Association of a company or an agreement with the company or a resolution passed in the general meeting or by the Board of Directors. As the board of directors is entrusted with the substantial powers of management of affairs of the company.
Someone who is in Full-time employment of the Company is an executive director or the whole director.
An ordinary director is a simple director who attends the Board meetings of a company and participates in the matters that are put before the Board of Directors. These Directors are not whole-time Directors or Managing Directors.
An additional director is an individual that is appointed by the Board of Directors between the two annual general meetings subject to the provisions of the Articles of Association of a Company. The additional directors should hold office only till the date of the next annual general meeting of the Company. However, the number of directors and the additional directors of a company together shall not exceed the maximum strength that is fixed for the Board of Directors by the Articles of Association.
The Board of Directors in the general meeting to act for a Director called the original director during his absence for not less than three months. In most cases, the alternate directors are appointed for a person who is non-resident Indian or for the foreign collaborators of a company.
A professional Director is a director with professional qualifications and does not have any pecuniary interest in the company. These professional Directors are sometimes appointed on board to utilize their expertise in the management of the company.
Banks and the private equity investors who provide equity assistance to a company generally impose a condition to appoint their representative on the Board of the concerned company. These nominated persons are called the Nominee Director.
In the case of a One Person Company, a nominee director is an individual who is nominated by the sole Director of the One person company to take over the affairs of the OPC in case of death or incapacitation of the sole director.
A corporate body of the business entity cannot be appointed as a Director in a private limited company. Hence, only an individual can be appointed as a Director in a Company. A Private Limited company can have a maximum of fifteen directors and the number of directors can be increased further by passing a special resolution.
Private Limited Company- Can have a minimum of two directors.
Limited Company- Minimum three directors.
One Person Company- Minimum one director.
At least one woman director is to be appointed in case of Listed companies and limited companies that have a paid-up share capital of Rs.100 crore rupees or more or turnover of Rs. 300 crores.
Remove Direcor
Services Covered
A Director in a company may want to resign or the Board of Directors may want to remove the Director for several reasons. The Director of a company can also resign from the Board by filing a resignation letter with the company and also intimating the ROC with the same. Here, we will take a look at the procedure that a director needs to follow in case he wants to resign from the post of Director.
After giving notice in writing to the Company a Director may resign from a company. The Board is required to intimate the ROC of this notice within 30 days in the form of DIR-12. If the Director chooses, he can also send a copy of the resignation letter to the ROC along with the reasons for the resignation using Form DIR-11.
A director can resign from his office by submitting a notice in writing to the Board of Directors of the company. An email or a letter to the company is also a valid mode of communication.
A copy of the resignation can also be forwarded along with the detailed reason for the resignation to the Registrar of Companies in Form DIR11 with the prescribed fees in the Companies Rules,2014 within 30 days from the date of resignation.
It shall be in effect from the date on which the company has received the notice of resignation or the date the director has specified any. The effective date of resignation shall be the same as the date of cessation that is entered in the form DIR12.
1. Notice of the resignation that is filed with the Company (resignation letter can also be attached)
2. Proof of Dispatch of the letter.
3. If any acknowledgment that is received from the Company and is mandatory is the Director has selected Yes in Form DIR11.
4. Other information can also be provided as optional attachments.
1. The Board of Directors shall take considers the notice of resignation that is received and accordingly the resolution should be passed by the Board of Directors for accepting the resignation and it is necessary to draft the minutes of the meeting of the Board of Directors.
2. The Registrar should be intimated in Form DIR12 (According to Rule 15 of the companies,2014) the Board of Directors should be intimated within 30 days from the date the resignation is received.
3. The board of directors should mention the resignation in the Director’s report of the annual general meeting and it should also be reflected on the website of the Company.
4. The company is required to attach these documents while filing DIR1:
i. The notice of resignation.
ii. Evidence of cessation (The board resolution or the acceptance letter can be attached)
Once the Director has resigned and the Board has accepted his resignation, the Director is not liable for any liabilities that are incurred by the company after the date of acceptance of the resignation.
However, a Director is still liable for any offenses that have occurred during his or her as the director of the Company.
Director KYC
Services Covered
The documents required to file reform DIR 3 KYC is as follows:
Aside from the aforementioned documents, directors must additionally have the following items on hand:
i. To file the form, he used his digital signature.
A director identification number (DIN) is a unique identifying number assigned to a person who wishes to become a director or is already a director of a corporation. DIN is obtained by submitting an application in eForm DIR-3, companies.
However, as a result of an amendment to MCA’s register, all directors with DIN are now required to submit their KYC details in e-Form DIR 3 KYC every year.
As mentioned above, Every director shall inform all the companies in which he/ she is a director, of the DIN allotted to him/her in Form DIR-3B within 30 days of the receipt of intimation of approval of DIN. Similarly, the Secretary and Manager of a company shall inform the company of their Income-tax Permanent Account Number (PAN). The company needs to further information about the DIN of the directors to the Registrar in Form DIR-3C within 15 days of receiving the intimation.
Directors are required to submit their KYC details to the MCA if they meet the following conditions, according to recent MCA announcements:
1. Their Director Identification Number (DIN) was assigned to them by or on March 31, 2018
2. DIN is in approved status
Registered Office Change - Company
Services Covered
The registered office of a company is a place where all the communication related to business is held. In addition to a registered office, a company can also have a corporate office, branch, factory, or administrative office. However, the registered office of a company in India must be registered with the Ministry of Corporate Affairs, the other branches and offices can be opened by a company without any prior intimation to the ROC. The registered office of the company in India will determine the domicile of the company (state of Incorporation). The ROC will be determined by the state or location in which the registered office of the company is located. In case there is a change of address in the registered office of a company the ROC must be notified within 15 days.
The registered office of a company needs to be changed with prior intimation. MCA has provided procedures to change the address of the company, this must be followed by the company.
Types of changes in the address of the registered office.
1. Within the same city
2. Within the same state and ROC
3. To other ROC in the same state
4. From one state to another
The process to change the registered office in the same city:
1. The company must arrange a board meeting and pas a resolution about the same.
2. The company needs to file a form INC22 with the MCA. It should be filed within 30 days of passing the board resolution.
3. The utility bill for business address proof, NOC from the owner, and the rental agreement is the place is rented must be attached.
Proprietorship firms file the Proprietor income tax return just like the Partnership Firms, LLPs, and the Companies registered in India. In the legal sense, the proprietorship and the proprietor are considered to be one. Hence, the income tax return filing of the proprietor and the proprietorship are the same.
As a sole proprietorship is not taxed as a different legal entity, the business owners file their business taxes like their individual returns. Like any other individual taxpayer, a proprietorship firm is also entitled to a proprietorship tax deduction as per the prevailing Income tax rules and depending on the slab rates applicable to his income.
We at Filinghouse can help you to take care of all the compliances while you can concentrate on your core business activities.
Individuals and HUFs can opt for the Old Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act).The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D, 80TTB, HRA) available in the Old Tax Regime. However, the deductions under section 80CCD(2), 80CCH(2) and 80JJAA shall be available in the New Tax Regime..
For Individual (resident or non-resident) less than 60 years of age anytime during the previous year:
Old Tax Regime
New Tax Regime u/s 115BAC
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|---|---|---|---|
| Up to Rs. 2,50,000 | Nil | Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% above Rs. 2,50,000 | Rs. 2,50,001 – Rs. 5,00,000 | 5% above Rs. 2,50,000 |
| Rs. 5,00,001 – Rs.10,00,000 | Rs. 12,500 + 20% above Rs. 5,00,000 | Rs. 5,00,001 – Rs. 7,50,000 | Rs. 12,500 + 10% above Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,12,500 + 30% above Rs. 10,00,000 | Rs. 7,50,001 – Rs. 10,00,000 | Rs. 37,500 + 15% above Rs. 7,50,000 |
| Rs. 10,00,001 – Rs. 12,50,000 | Rs. 75,000 + 20% above Rs. 10,00,000 | ||
| Rs. 12,50,001 – Rs. 15,00,000 | Rs. 1,25,000 + 25% above Rs. 12,50,000 | ||
| Above Rs. 15,00,000 | Rs. 1,87,500 + 30% above Rs. 15,00,000 |
For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:
Old Tax Regime
New Tax Regime u/s 115BAC
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|---|---|---|---|
| Up to Rs. 3,00,000 | Nil | Up to Rs. 2,50,000 | Nil |
| Rs. 3,00,001 – Rs. 5,00,000 | 5% above Rs. 3,00,000 | Rs. 2,50,001 – Rs. 5,00,000 | 5% above Rs. 2,50,000 |
| Rs. 5,00,001 – Rs.10,00,000 | Rs. 10,000 + 20% above Rs. 5,00,000 | Rs. 5,00,001 – Rs. 7,50,000 | Rs. 12,500 + 10% above Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,10,000 + 30% above Rs. 10,00,000 | Rs. 7,50,001 – Rs. 10,00,000 | Rs. 37,500 + 15% above Rs. 7,50,000 |
| Rs. 10,00,001 – Rs. 12,50,000 | Rs. 75,000 + 20% above Rs. 10,00,000 | ||
| Rs. 10,00,001 – Rs. 12,50,000 | Rs. 75,000 + 20% above Rs. 10,00,000 | ||
| Rs. 12,50,001 – Rs. 15,00,000 | Rs. 1,25,000 + 25% above Rs. 12,50,0000 | ||
| Above Rs. 15,00,000 | Rs. 1,87,500 + 30% above Rs. 15,00,000 |
For Individual (resident or non-resident) 80 years of age or more anytime during the previous year:
Old Tax Regime
New Tax Regime u/s 115BAC
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|---|---|---|---|
| Up to Rs. 5,00,000 | Nil | Up to Rs. 2,50,000 | Nil |
| Rs. 5,00,001 – Rs.10,00,000 | 20% above Rs. 5,00,000 | Rs. 2,50,001 – Rs. 5,00,000 | 5% above Rs. 2,50,000 |
| Above Rs. 10,00,000 | Rs. 1,00,000 + 30% above Rs. 10,00,000 | Rs. 5,00,001 – Rs. 7,50,000 | Rs. 12,500 + 10% above Rs. 5,00,000 |
| Rs. 7,50,001 – Rs. 10,00,000 | Rs. 37,500 + 15% above Rs. 7,50,000 | ||
| Rs. 10,00,001 – Rs. 12,50,000 | Rs. 75,000 + 20% above Rs. 10,00,000 | ||
| Rs. 12,50,001 – Rs. 15,00,000 | Rs. 1,25,000 + 25% above Rs. 12,50,000 | ||
| Above Rs. 15,00,000 | Rs. 1,87,500 + 30% above Rs. 15,00,000 |
Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates
10% - Taxable Income above ₹ 50 lakh – up to ₹ 1 crore
15% - Taxable Income above ₹ 1 crore - up to ₹ 2 crore
25% - Taxable Income above ₹ 2 crore - up to ₹ 5 crore
37% - Taxable Income above ₹ 5 crore
Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112, and112A is 15%
Marginal relief is a Relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, ₹ 1 crore, ₹ 2 crore or ₹ 5 crore respectively.
Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)
A partnership firm is a type of entity where more than one person is carrying out business under one entity. Partnerships firms in India are of two types – Registered partnership firms and unregistered partnership firms.
Registering a Partnership is the right choice for small enterprises as the formation is straightforward and there are minimal regulatory compliances.
The Partnership Act has been in existence in India since 1932, making partnerships one of the oldest types of business entities in India. A partnership firm can even be registered after it is formed. There are as such no penalties for non Registration of a Partnership firm.
But unregistered Partnership firms are denied certain rights under section 69 of the Partnership Act that majorly deals with the effects of non Registration of Partnership firms.
The income tax defines a Partnership firm as “Persons who have entered into a partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”. Hence, a firm that does not have a registration certificate from the registrar is an unregistered Partnership firm.
We at Filinghouse can help you to take care of all the compliances while you can concentrate on your core business activities.
A partnership firm is required to file a partnership firm income tax return under the Income Tax Act,1961. Partnership firms are liable to pay income tax at the rate of 30% of total income. Besides, a partnership firm is liable to pay an income tax surcharge of 12% if the total income exceeds Rs.1 crores.
Additional to the income tax and surcharge a partnership firm must pay the education cess and the secondary higher education cess.
Education Cess is applicable on the amount of the income tax and the applicable surcharge at the rate of 2%. Secondary and higher education cess is applicable on the amount of the income tax and the applicable surcharge at the rate of 1%.
Similar to a private limited company or LLP, partnership firms are also required to pay alternate minimum tax at the rate of 18.5% of “adjusted total income”. Alternate minimum tax would be increased by the applicable surcharge, education cess, and secondary and higher education cess.
A private limited company that has been incorporated in India must ensure the compliance concerning the Companies Act, 2013 are adequately met.
The Companies Act, 2013 regulates the appointment, qualification, remuneration, and retirement of the Company’s Directors and other aspects such as conducting board meetings and shareholder meetings.
The RoC compliance for registered Private Limited Companies is necessary. Irrespective of the total turnover or the capital amount, the company must comply with the annual compliance requirement.
All companies registered in India like a private limited company, one person company, limited company, and section 8 company need to maintain the annual compliances like annual returns and income tax return each year. Though Company Registration happens to be the most popular form of starting a business, various compliances need to be followed once the business is Incorporated.
Managing the business’s everyday operations while complying with the difficult corporate laws can be a task for the entrepreneur. So, it is always better to take the professionals’ help and understand the legal requirement to ensure timely fulfillment of these compliances to waive off the penalties or fines.
We at Filinghouse can help you to take care of all the compliances while you can concentrate on your core business activities.
Following is the summary of the private limited company compliance due dates in 2021.
| Compliances | Description |
|---|---|
| Commencement of business ( within 180 days) | For companies registered in India after November 2019, having a share capital, it is necessary to obtain a commencement if business certificate before commencing any business or exercising the borrowing powers. The commencement of business certificate must be obtained within 180 days of incorporating a Company.n case the individual fails to obtain this certificate, there is a penalty of Rs. 50,000 for the company Rs. 1000 per day for the directors for each day of default. |
| Auditor Appointment (Within 30 days) | All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. If the company fails to appoint an auditor, the company won’t be allowed to commence business. Also, there is a penalty of Rs. 300 per month. |
| Income Tax Return | Income tax returns need to be filed on or before 30th September 2021 for the Financial year 2020-21. |
| MCA Form AOC-4 | The registered private limited companies must file MCA Form AOC-4 on or before 30th November 2021 for the FY2020-21. Failure to file AOC-4 will attract a penalty of Rs. 200 per day of default or delay. |
| MCA Form MGT-7 | It is necessary to file MCA form MGT-7 on or before 31st December 2021 for FY2020-21. Failure to file MGT-7 attracts a penalty of Rs.200 Per day of default or delay. |
| DIN eKYC | All the directors of the company must be filed for the DIN eKYC or DIR-3 eKYC. In DIR-3 eKYC, the Director must provide a unique personal mobile number and a personal email address. There’s a penalty of Rs. 5000 in case of failure to file DIN eKYC. |
| Hold Annual General Meeting | For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the Financial year. |
| Director’s report | Preparation of the Directors report will be done with all the information required under Section 134. |
The statutory audit compliances are carried to determine whether an organization provides accurate details of the financial position by examining the bank balances, bookkeeping records, and financial transactions.
The Director has to disclose details about his directorship in other companies every year. This can be done by giving a declaration in writing to the company every year.
The Private Limited Companies must file the annual accounts and returns disclosing the details of its shareholders, directors, etc., to the companies’ registrar.
As a part of the annual filing, the following forms are to be filed with the ROC:
Form MGT-7 (Annual returns) must be filed within 60 days of holding the annual general meeting.
Form AOC-4 (Financial statements) is to be filed by a private limited company within 30 days with the balance sheet and the statement of profit and loss account and Director report.
It is necessary to hold a meeting of the shareholders once every year within six months from the financial year’s closing.
AGMs are held for approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, commission, remuneration of directors, etc.
The meeting is held during business hours on a day that is not a public holiday. It shall occur at the registration of the company or the city, village, or town in which the registered office is situated.
It is mandatory to conduct the first meeting of the Board of Directors of a company within 30 days of incorporation of the company.
There should be four board meetings held every three months in which a minimum of 2 directors or 1/3 rd of the total number of directors, whichever is greater, are required to be present.
There should be four board meetings held every three months in which a minimum of 2 directors or 1/3 rd of the total number of directors, whichever is greater, are required to be present.
A notice should be intimidated seven days in advance about the date and the purpose of the meeting.
In case if a company fails to comply with the rules and the regulations of the Companies Act, then the company and its members who default shall be punishable with a dine for the period of which the default is continuing.
In case there is a delay in annual filing, additional fees are required to be paid. Hence, it is always better to fulfill the compliances on time.
LLP or the Limited Partnership is a hybrid combination of a limited and partnership company. Minimum two partners are required to incorporate an LLP there is no such upper limit.
Limited Liability Partnerships are required to file the annual returns within 60 days from the end of the close of the financial year and account statement and solvency within 30 days from the end of six months of the closure of the financial year.
The financial year for the LLPs starts from the 1st of April to the 31st of March. The annual return for the LLPs is due on May 30th while the statement of accounts and solvency is due on the 30th of October of each financial year.
Besides the MCA annual return filing, the limited liability partnerships must also mandatorily file the income tax return every year.
Besides the MCA annual return filing, the limited liability partnerships must also mandatorily file the income tax return every year.
The income tax rate applicable for LLPs registered in India is 30% of the total income. Besides the income tax, a surcharge is levied on the income of the tax payable at the rate of 12% when the total income is exceeding Rs.1 core.
Health and Education cess of 4% is applicable on the amount of income tax and the applicable surcharge.
Similar to income tax applicable for a company, LLP is also subject to minimum alternate tax. A minimum alternate tax of 18.5% of adjusted total income is applicable for LLP. Hence, income tax payable by LLP cannot be less than 18.5 percent (increased by income tax surcharge, education cess, and secondary and higher education cess).