Compliances

Compliances for businesses in India refer to the legal requirements and regulations that companies must adhere to. These include a variety of statutory obligations under different laws and acts, such as the Companies Act, 2013. Here’s a brief overview of what compliances generally involve:

Compliances

Company Compliance Requirements :

Compliances	Description
Commencement of business ( within 180 days) Form INC-20A	The commencement of business certificate must be obtained within 180 days of incorporating a Company. In case the Company 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 Form ADT-1	All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. And Subsequent Auditor Will be appointed/reappointed in the AGM. If the company fails to appoint an auditor, the company will be liable to pay penalty
Income Tax Return	Income tax returns need to be filed on or before 30th September for every financial year.
Form AOC-4	The registered private limited companies must file Form AOC-4 within 30 days of its Annual General Meeting (AGM) . Failure to file AOC-4 will attract a penalty of Rs. 100 per day of default or delay.
Form MGT-7	It is necessary to file MCA form MGT-7 within 60days of its Annual General Meeting (AGM). Failure to file MGT-7 attracts a penalty of Rs.100 Per day of default
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.

Limited Liability Partnerships (LLPs) Compliance Requirements:

Form Type	Description	Due Date	To be filed with
Form-8	Filing of Statement of Accounts	30th October	Registrar of Companies
Form-11	Filing of Annual Returns	30th May	Registrar of Companies
ITR - 5	Income Tax Return	31st July (or 30th September, if tax audit is mandatory)	Income Tax Department
Audit	Tax Audit (only if applicable)	30th September	Income Tax Department

Due Date for EPF Payment and EPF Return

EPF payment due date is the date by which PF from the employees’ salary should be deducted. This should be done on or before the 15th of every next month. However, the due date of PF return and the due date of PF payment are both the same, i.e. on or before the 15th of every month.

Late Payment Penalty in EPF

Upon the late EPF Challan payment, the following two penalties are applied-

Interest for late payment under Section 7Q- An interest of 12% per annum, for every single day is levied on the employer if he/she fails to deposit the EPF contribution before the deadline

Penalty for late payment under Section 14B- In case of failure of Challan payment, the following penalties should be incurred-

• 5% interest per annum for a delay of up to 2 months

• 10% interest per annum for a delay of 2-4 months

• 15% interest per annum for a delay of 4-6 months

• 25% interest per annum for a delay of more than 6 months

ESI Compliances

ESI returns must be filed every six months. The deadline for returns covering April to September is November 12th, and for returns covering October to March, it is May 12th. Failure to file ESI returns by the designated ESI return due date can lead to penalties and legal consequences for employers. It may also result in non-compliance with ESIC regulations.