September 2023

Company compliance is an important aspect that has to be taken into account while running a business. It is mandatory to adhere to all the ROC compliance to avoid penalties. All private limited companies, one-person companies, limited companies, and section 8 companies must maintain annual compliance with respect to the Companies Act of 2013. These company compliances are usually independent of the total turnover or the capital amount involved. The ROC compliance for registered private limited companies is mandatory. Not being able to adhere to the annual compliances for private limited companies may result in serious action on the firm. Annual Compliances refers to the set of legal and regulatory requirements that a Private Limited Company must comply with on an annual basis. These compliance requirements are mandated by the Companies Act, 2013, and other applicable laws & regulations. Applicability of Annual Compliance All companies registered in India, like private limited companies, one-person companies, limited Companies, and section 8 companies, must maintain annual compliances like annual returns and income tax returns each Year.  Benefits of Annual Compliance Greater Company’s Credibility The regularity in compliance also increases the business’s credibility, attracts more customers and helps in obtaining the government tenders and loan approval.  Attract more Investors The main focus points with regard to the investors are financial records and compliances. Before investing in any company, the investors first look into the regularity of filing  Maintain the Active status of a company and avoid penalties It is important for a company to file annual compliances on a regular basis to avoid penalties. Failure to file the annual compliance reduce status What compliances are to be maintained by Company? The compliances can be categorized as below: Registrar related Compliance Non-Registrar Compliance Registrar related Compliance Declaration of Commencement of Business-Form INC-20A(To be filed within 180 days from the date of incorporation)  Directors KYC-Form DIR-3KYC  Directors’ disclosure of not being disqualified-Form DIR-8 (Each company director in each financial year must file a non-disqualification report with the Company.)  Mandatory Appointment of Auditor- FORM ADT-1(Every Company will have to appoint an Auditor within 15 days of the incorporation. However, Form ADT-1 may be filed post-first company AGM) Meetings of the Board of Directors-A firm will have to hold a minimum number of four Board meetings. The maximum gap between two sessions is at most 120 days, and a meeting is held every quarter.  Annual General Meeting (AGM)-AGM shall be held within six months from the closing of the financial year   Annual Return-Company Annual Return should be filed Within sixty days of the date of holding the AGM.The annual return Form MGT-7  should be filed for the period 1 April to 31 March for the respective Year. Financial Statements-The form AOC-4 is used for filing  Financial Statements Within thirty days of holding the AGM. Other Non-RoC Compliances Payment of periodic dues (GST Liability, TDS, TCS payment, Advance tax, and PTax) Filing of regular returns – Monthly/Quarterly/Annual GST Returns Quarterly TDS Returns Assessment of advance tax liability Filing of Income Tax Returns Filing of Tax Audit Report Filing of half-yearly ESIC returns Filing of PF returns Filing of professional tax (PTax) returns Frequently Asked Questions Q1: What does the register should contain? All the companies pertaining to the Private limited category are expected to have sanctioned records maintained update for the following members, charges, loans and investments Q2: What happens if I don’t comply with annual requirements? Non-compliance can lead to penalties, legal troubles, and even the dissolution of your company. Q3: Is compliance the same for all types of companies? No, it varies based on factors like your company’s structure, size, and industry. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice 

Introduction In the quest for entrepreneurial success, every business owner seeks opportunities to enhance their company’s growth and secure various benefits. With the Indian government’s focus on promoting Micro, Small, and Medium Enterprises (MSMEs), the Udyam Registration scheme has emerged as a game-changer. This blog aims to provide you with an in-depth understanding of Udyam Registration, its What is Udyam Registration in Jaipur ? Udyam Registration is an online certification process introduced by the Indian government to promote and support MSMEs. It replaced the previous registration process known as Udyog Aadhaar. This simplified and streamlined registration scheme aims to provide various benefits and incentives to eligible businesses. The Udyam Registration Certificate serves as proof of a business’s classification as an MSME. It enables enterprises to access various government schemes, subsidies, and credit facilities tailored to their needs. Whether you’re a small-scale manufacturer, service provider, or trader, obtaining Udyam Registration can significantly enhance your business prospects. Benefits of Udyam Registration Obtaining Udyam Registration brings a multitude of advantages to MSMEs, empowering them to thrive in a competitive market. Let’s take a closer look at the key benefits: Access to Government Schemes and Incentives: Udyam Registration enables businesses to participate in various government schemes like Credit Guarantee Fund Scheme, Performance and Credit Rating Scheme, and more. MSMEs can enjoy subsidies, tax benefits, and financial assistance provided under schemes such as the Prime Minister’s Employment Generation Programme (PMEGP) and the Technology and Quality Upgradation Support to MSMEs. Ease of Obtaining Bank Loans: With Udyam Registration, businesses gain easier access to credit and collateral-free loans. The government has introduced a dedicated portal to facilitate loan disbursement and faster processing for registered MSMEs. Protection against Delayed Payments: Udyam Registration equips enterprises with the power to seek relief through the Micro and Small Enterprises Facilitation Council (MSEFC) in cases of delayed payments from buyers. This provides added security and ensures the timely flow of funds for MSMEs. Enhanced Market Opportunities: Udyam Registration opens doors to participate in government tenders and procurements, giving MSMEs the chance to expand their customer base. Businesses can access exclusive exhibitions, trade fairs, and vendor development programs, providing exposure to potential buyers and collaborators. Who can apply for Udyam Registration in Jaipur? The Udyam Registration scheme is open to a wide range of businesses falling under the Micro, Small, and Medium Enterprise categories. Here’s a breakdown of the eligibility criteria based on investment and turnover: Micro Enterprises: For manufacturing enterprises, the investment in plant and machinery should not exceed INR 1 crore. For service-based enterprises, the investment in equipment should not exceed INR 50 lakhs. Small Enterprises: Manufacturing enterprises should have an investment between INR 1 crore and INR 10 crores in plant and machinery. Service-based enterprises should have an investment between INR 50 lakhs and INR 2 crores in equipment. Medium Enterprises: Manufacturing enterprises should havean investment between INR 10 crores and INR 50 crores in plant and machinery. Service-based enterprises should have an investment between INR 2 crores and INR 5 crores in equipment. It’s important to note that the turnover of the business is also considered while determining the eligibility for Udyam Registration. The revised MSME definition under the Atmanirbhar Bharat package includes the turnover criteria. For micro enterprises, the turnover should not exceed INR 5 crores. For small enterprises, the turnover should not exceed INR 50 crores, and for medium enterprises, the turnover should not exceed INR 250 crores. If your business falls within these investment and turnover limits, you are eligible to apply for Udyam Registration and unlock the benefits that come with it. Revised MSME Definition – The Atmanirbhar Bharat Package After 14 years since the MSME Development Act, a revision in the MSME definition was announced in the Atmnirbhar Bharat package on 13.05.2020 to bring more units under the purview of the schemes announced. According to this package, the composite criteria for the definition of MSME are investment and turnover; the limit has been revised upwards. The distinction between the service and the manufacturing sector has also been eliminated. The limit of the Micro units (both manufacturing and services) was increased to Rs. 1 Crore investment and Rs. 5 Crore turnover. Similarly, the limits of the small unit also increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover. The limits of the medium enterprises were increased to Rs. 20 Crore of investment and Rs. 100 Crore turnover. When to apply for Udyam Registration? If your business meets the eligibility criteria, it’s crucial to understand when to apply for Udyam Registration. The registration process is simple and can be done online through the Udyam Registration Portal. It’s recommended to apply for Udyam Registration as soon as your business meets the eligibility criteria to ensure you can access the benefits at the earliest. Additionally, it’s important to note that the Udyam Registration Certificate is valid for a lifetime. However, it requires periodic updating and renewal of information. Documents Required for Udyam Registration Online To complete the Udyam Registration process smoothly, you need to gather the necessary documents. Here’s a list of the documents typically required: Aadhaar Card: The Aadhaar number of the business owner or the authorized signatory is essential for Udyam Registration. PAN Card: The Permanent Account Number (PAN) of the business or the authorized signatory is required for registration. Business Details: You need to provide information about the name of the business, its address, and other contact details. Bank Account Details: Furnish the bank account details, including the account number and IFSC code, to link it with your Udyam Registration. NIC Code: The National Industrial Classification (NIC) Code that represents your business activity needs to be mentioned during the registration process. Investment and Turnover Details: Provide the investment in plant and machinery or equipment, as well as the turnover of your business, as per the eligibility criteria. Ensure that you have these documents ready before starting the Udyam Registration process to avoid any delays or complications. Udyam Registration of New