Introduction
Annual Compliance for a public limited company has to be accomplished in compliance with the necessary of the Registrar of Companies and the MCA. According to Section 2(71) of the Companies Act, 2013, a public company offers its shares to the public. Any company which is a supplement of a public company would also be deemed to be known as a public limited company.
Annual Compliance for Public Limited Company
Holding Board Meeting
Holding Board Meeting is the first compliance that needs to be done by a Public Limited Company. The first meeting of the Board of members shall be governed within 30 days by the Public Limited Company. At least 4 Board meetings are to be administered with a gap of 120 days between each board meeting every year. It means every Public Limited Company shall conduct a minimum of 4 board meetings within a year and the gap should not be more than 120days between these Board Meetings. The main motive of these meetings is the attendance of members and discussions are recorded at every board meeting.
Appointment of the Auditor
The auditor shall be appointed by the Board of Directors for the company within a period of 30 days from the date of incorporation of the Company. In case of failure of the Board of Directors to appoint the first auditor within 30 days then the Board of Directors shall inform the other members who shall appoint an auditor within 90 days. The appointment can be done in an extraordinary general meeting.
Disclosure of Interest by Directors
Every director shall disclose their interest in any company, firm, or other AOI in its first board meeting. Every Year disclosure of interest shall be filed, if there is any change in the interest then it is to be filed along with the list of relatives as well.
Declaration of Commencement of Business
It shall be filed in Form 20A. It is mandatory compliance and necessary to be filed within the due date. The Form 20A shall be certified by professionals like Chartered Accountants, CS, or CMA.
Classification of the Annual Compliance for Public Limited Company
They are classified into two categories which are given below:
Listed Company:
According to section 2 (52) of the Companies Act, 2013, a Listed Company in which the shares are listed on the recognized stock exchange. People can purchase or resell the shares of a Listed Company through the Platform on the recognized stock exchange. Listed Company has recognized the reason that it gets its capital after picking up on recognized stock exchange by IPO.
Unlisted Company:
According to the Companies Act, 2013, an unlisted company can be a Public Limited Company or can be a Private Limited Company. It suggested that in unlisted companies no shares are available to the general public for investment.
Eligibility for filing the Annual Compliance for Public Limited Company
If your company or business entity is registered as a Public Limited Company then according to the Companies Act, 2013, it is necessary to file the annual compliance for a public limited company. The only eligibility criteria for filing the annual compliance is that the company is a public limited company.
Documents required for filing the Annual Compliance for Public Limited Company
The documents and information required for annual compliance for a public limited company are mentioned following:
Financial statements of the F.Y.
Shareholding structure associated with the Public Limited Company
Address of the registered office
A maintained register of the company
Compliance certificate from the Company Secretary
All details of the Member Registration
All details regarding the company management
All details regarding the shares and debentures of the company
Detail about Debt and Charge of the company
In event-based compliance, if there is a change of director then, the details about the changes are required.
In the case of event-based compliance, if there is an event related to sharing transfer, then the details of the same are required as well.
The shareholding structure of the company.
Process for filing Annual Compliance for Public Limited Company
Under the Companies Act 2013, process for filing the annual compliance for a public limited company is given the following:
Maintenance and readiness of all the financial records that are required to be submitted to the Registrar of Companies on an annual basis.
Filing the Annual returns in the form of MGT-7.
Filing for certification of Annual Return in the MGT-8 form.
Income tax returns are paid annually.
A secretarial Audit report in the MR-3 form.
The annual compliances that are according to the rules and regulations associated with SEBI
Annual General meeting report in the MGT-15 form.
Event-Based Annual Compliances
Adoption of Financials and Director’s report in the form of MGT-14.
Benefits for filing the Annual Compliance for Public Limited Company
There are some benefits to filing the annual compliances for a public limited company which are mentioned below:
1. Reputation-
Registrar of Companies and the Ministry of Corporate Affairs by complying with the requirements of the Public limited company and partners will raise their reputation in the eyes of the public. Through this process, a Public limited company can raise its compliance requirements. More investors would be willing to invest in a Public limited company that complies with the essentials of the law.
2. Compliance-
All compliances filed within a particular period then the Public limited company would be free from any form of compliance needed.
3. Fewer Burdens-
By complying with the requirements of the authorities, when it comes to compliance requirements then the Public limited company would face a lesser burden. If compliances are not followed up or filed by the Public limited company then it can be adverse to the development of the Public limited company. Hence all the requirements related to compliance must be succeeded by the partners of the Public limited company.
Conclusion
It concluded that According to Section 2(71) of the Companies Act, 2013, a public company offers its shares to the public. Any company which is a supplement of a public company would also be deemed to be known as a public limited company. The first meeting of the Board of members shall be governed within 30 days by the Public Limited Company. At least 4 Board meetings are to be administered with a gap of 120 days between each board meeting every year. It means every Public Limited Company shall conduct a minimum of 4 board meetings within a year and the gap should not be more than 120days between these Board Meetings.
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