As per the Companies Act 2013, it is mandatory for all companies to file their Annual returns for every financial year. All companies include Private Limited Company, Limited Company and One Person Company incorporation. To fulfil the compliance requirements of your Private Limited Company, follow the simple guidelines abridged by Look4expert.
Step 1: Create and maintain a ‘Book of Accounts’
The Companies Act 2013 mandates all companies to maintain a ‘Book of Accounts’. This includes all the essential financial information regarding the company. Entries must be details of any cash transactions received or spent by the company, sales and purchases, liabilities and assets as well as any other financial transaction. All the entries must be in the chronological order of their occurrence.
Look4expert are pioneers in providing bookkeeping for beginners and small business. So, if you are a private limited company and are looking for guidance regarding the same, it is suggested that you contact Look4expert at the earliest.
Step 2: Financial Statement
The ultimate purpose of ‘book of accounts’ is to prepare a ‘Financial statement’ for the company which would in detail explain the actual financial position. This would also describe the balance sheet of the company explaining any profits or losses incurred, the performance of the company and changes in the financial position of any assesses.
To avoid any erroneous complication, it is always best to trust the expertise of an organization dedicated to providing such services. Look4expert can be your guide at the time of need.
Step 3: Appointing an Auditor
According to Companies Act 2013, it is imperative for a private limited company to appoint their first auditor within the first 30 days from the date of your company registration. This auditor can be an individual qualified CA or a body of auditors who are not related or biased to the company. Their main contribution is to approve the financial statement of the company. Any discrepancy should be put forth through a Qualifying Audit Report in front of the shareholders. The term of the auditor(s) can end after the completion of the Annual General Meeting of the company post which the company can either reappoint them or appoint new auditors.
Step 4: Annual General Meetings
Being a private limited company, it is mandatory to hold annual general meetings every financial year. According to the annual compliance, there should not be a gap of more than 15 months between two consecutive Annual General Meetings. The main agendum of this meeting each year is to present the financial statement of the company to all the members post approval from the stakeholders and directors of the company.
Step 5: Registrar and Annual Return filings
For any private limited company, the financial statements must be filed with a Registrar. This should be done within 60 days of the Annual General Meeting. If for any reason the AGM is not held, then the reason must be mentioned while filing the Annual return.
Every business is busy with its own prerequisites and development. Look4expert understands your requirements as a private limited company and extends all support and guidance. The team here believes in consistency which is a key ingredient for proper annual returns filing.