{"id":737,"date":"2025-08-06T00:00:00","date_gmt":"2025-08-06T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/annual-compliance-of-a-company-in-india\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"annual-compliance-of-a-company-in-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/annual-compliance-of-a-company-in-india\/","title":{"rendered":"Annual Compliance of a Company in India \u2013 Requirements, Rules &#038; Checklist [2025 Updated]"},"content":{"rendered":"<h2 id=\"\"><strong id=\"\">Applicability of Annual Compliance<\/strong><\/h2>\n<p id=\"\">Annual compliance is mandatory for <strong id=\"\">all types of companies registered in India<\/strong>, including:<\/p>\n<ul id=\"\">\n<li><a id=\"\" href=\"https:\/\/razorpay.com\/learn\/what-is-a-private-limited-company\/\"><strong id=\"\">Private Limited Company (Pvt Ltd)<\/strong><\/a>: Must file annual returns, conduct board meetings, and submit audited financials.\n<\/li>\n<li><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-one-person-company\/\"><strong id=\"\">One Person Company (OPC)<\/strong><\/a>: Similar compliance as Pvt Ltd but with certain relaxations in AGM requirements.\n<\/li>\n<li><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/company-registration\/public-limited\"><strong id=\"\">Public Limited Company<\/strong><\/a>: Higher compliance standards due to shareholder involvement and public accountability.\n<\/li>\n<li><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blog\/section-8-company-compliance\"><strong id=\"\">Section 8 Company<\/strong><\/a>: Must comply with annual filings and governance norms despite being a non-profit.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Benefits of Annual Compliance<\/strong><\/h2>\n<ul id=\"\">\n<li><strong id=\"\">Avoids legal penalties<\/strong> and ensures smooth business operations<\/li>\n<li><strong id=\"\">Maintains good standing<\/strong> with regulatory authorities<\/li>\n<li><strong id=\"\">Builds trust<\/strong> with investors, clients, and stakeholders<\/li>\n<li><strong id=\"\">Improves creditworthiness<\/strong> for bank loans and funding<\/li>\n<li><strong id=\"\">Facilitates a smooth exit or sale<\/strong> of the business in the future<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Registrar Related Compliance<\/strong><\/h2>\n<h3 id=\"\"><strong id=\"\">Financial Statements<\/strong><\/h3>\n<p id=\"\">Every company must prepare three core financial statements:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Income Statement<\/strong>: Shows the company\u2019s profitability over a financial year.<\/li>\n<li><strong id=\"\">Balance Sheet<\/strong>: Presents the company\u2019s assets, liabilities, and equity.<\/li>\n<li><strong id=\"\">Cash Flow Statement<\/strong>: Details the inflow and outflow of cash.<\/li>\n<\/ul>\n<p id=\"\">Financial statements must be prepared within 6 months from the end of the financial year and filed with the ROC via <strong id=\"\">Form AOC-4<\/strong>. All companies must audit their accounts with a chartered accountant. Failure to file financial statements can result in penalties of \u20b9100 per day of delay.<\/p>\n<h3 id=\"\"><strong id=\"\">Annual General Meeting (AGM)<\/strong><\/h3>\n<p id=\"\">An AGM is a yearly meeting applicable under Section 96 of the Companies Act, 2013,&nbsp; of shareholders to discuss and approve the company\u2019s financial statements, appoint auditors, and make key business decisions.<\/p>\n<ul id=\"\">\n<li><strong id=\"\">First AGM:<\/strong> Within 9 months of the end of the first financial year<\/li>\n<li><strong id=\"\">Subsequent AGMs:<\/strong> Within 6 months from the end of the financial year (but not later than 15 months from the last AGM)<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">Auditor\u2019s Appointment<\/strong><\/h3>\n<p id=\"\">Under the <strong id=\"\">Companies Act, 2013<\/strong>, every company in India must appoint an auditor within a specific timeline. The first auditor is appointed shortly after incorporation, and future appointments happen during the Annual General Meeting (AGM).&nbsp;<\/p>\n<ul id=\"\">\n<li><strong id=\"\">First Auditor:<\/strong> Appointed by the Board of Directors within 30 days of incorporation<\/li>\n<li><strong id=\"\">Subsequent Auditors:<\/strong> Appointed in AGM for a term of 5 years<\/li>\n<\/ul>\n<p id=\"\">File <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/form-adt-1\/\/\"><strong id=\"\">Form ADT-1<\/strong><\/a> with ROC within 15 days of the appointment. If no auditor is appointed, the ROC can step in, and penalties under <strong id=\"\">Section 450<\/strong> apply- \u20b925,000 on the company and \u20b95,000 on each officer in default.<\/p>\n<h3 id=\"\"><strong id=\"\">Annual Returns<\/strong><\/h3>\n<p id=\"\">Under the <strong id=\"\">Companies Act, 2013<\/strong>, every company registered in India must file certain forms with the <strong id=\"\">Registrar of Companies (RoC)<\/strong> each year, regardless of whether it\u2019s making a profit, breaking even, or inactive.<\/p>\n<p id=\"\">The key filings include:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Form MGT-7<\/strong>: Annual return with details of shareholders, directors, and company structure.<\/li>\n<li><strong id=\"\">Form AOC-4<\/strong>: Filing of audited financial statements.<\/li>\n<li><strong id=\"\">Form ADT-1<\/strong>: Auditor appointment details.<\/li>\n<\/ul>\n<p id=\"\">These filings must be submitted within the prescribed timelines, failing which companies can face <strong id=\"\">hefty penalties<\/strong>, ranging from \u20b950,000 to \u20b95 lakhs, and in some cases, even imprisonment for responsible officers.&nbsp;<\/p>\n<h3 id=\"\"><strong id=\"\">DIR-3 KYC<\/strong><\/h3>\n<p id=\"\">Every director must file <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/form-dir-3-kyc-kyc-of-directors\/\/\"><strong id=\"\">DIR-3 KYC<\/strong><\/a> annually with the Ministry of Corporate Affairs (MCA). This filing requires basic information such as your <strong id=\"\">name, address, PAN, Aadhaar, email ID, mobile number,<\/strong> and OTP verification. There are two types of filings:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">DIR-3 KYC Form<\/strong>: For first-time filers or directors who need to update any details.<\/li>\n<li><strong id=\"\">DIR-3 KYC Web<\/strong>: For directors with no changes in their information from the previous year.<\/li>\n<\/ul>\n<p id=\"\">The <strong id=\"\">due date is September 30th<\/strong> every year. Missing this deadline will <strong id=\"\">automatically<\/strong> <strong id=\"\">deactivate your <\/strong><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/directors-identification-number-din\/\"><strong id=\"\">Director Identification Number (DIN)<\/strong><\/a> and result in a late filing fee of \u20b95,000 to reactivate it.<\/p>\n<h3 id=\"\"><strong id=\"\">Income Tax Return (ITR)<\/strong><\/h3>\n<p id=\"\">In India, <strong id=\"\">ITR filing is mandatory for companies<\/strong>, regardless of turnover or income status. An ITR includes details of your company\u2019s income, expenses, tax liability, deductions claimed, and taxes paid.&nbsp;<\/p>\n<p id=\"\">Even if your company is new or inactive, filing a <strong id=\"\">nil return<\/strong> is still compulsory. Non-compliance can attract fines under Section 234F of the Income Tax Act and impact your company\u2019s credibility with banks, investors, and regulators. It is generally filed in <strong id=\"\">ITR-6<\/strong> format for companies (except Section 8 companies claiming exemption)<\/p>\n<h2 id=\"\"><strong id=\"\">Other Non-RoC Compliances<\/strong><\/h2>\n<p id=\"\">Apart from ROC-related filings, companies must also meet <strong id=\"\">financial, tax, and labour law compliances<\/strong>, including:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Tax-related:<\/strong> GST returns, TDS returns, TCS, Advance Tax, Professional Tax<\/li>\n<li><strong id=\"\">Labour-related:<\/strong> ESIC, PF returns, Shops &amp; Establishment filings<\/li>\n<li><strong id=\"\">Other sector-specific filings<\/strong>, depending on industry regulations<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Frequently Asked Questions (FAQs)<\/strong><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Know the annual compliance requirements for companies in India. Learn about mandatory filings, due dates, penalties for non-compliance, and a complete compliance checklist.<\/p>\n","protected":false},"author":1,"featured_media":738,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=737"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/737\/revisions"}],"predecessor-version":[{"id":1191,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/737\/revisions\/1191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/738"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}