basic requirement for incorporation of a Private Limited Company, as per
Section 3 of the Companies Act, 2013 (Act) is that 2 or more persons are
required to form the company and comply other requirements for incorporation as
required by the Act.
post incorporation, a Private Limited Company needs to fulfill mandatory
compliances stated by the Act.
compliances to be fulfilled by a Private Limited Company are:
· Board Meetings: According to
Section 173 of the Act, every company has to hold its first meeting of Board of
Directors within 30 days of its incorporation. Thereafter, four Board meetings
have to be held every year without a gap of more than 120 days in between the
Board meetings. Also, a seven days' notice for the same has to be sent to every
· Disclosure of Director's Interest: As
per Section 184 of the Act, every director has to disclose his interest in any
company, body corporate, firms, etc., in the first meeting of the Board of
every financial year. The disclosure has to be made in Form MBP-1.
· Annual General Meeting: As per Section
96 of the Act, the company must hold its first Annual General Meeting within 9
months from the date of closing of the first financial year. Further, it must
hold the meeting every year without the gap of 15 months in between two of such
· Appointment of auditors: Under Section
139 of the Act, the Board of Directors of a Private Limited Company has to
appoint the first auditor within 30 days of the incorporation of the company.
The tenure of the auditor shall be till the first Annual General Meeting, after
which another auditor would be appointed in the Meeting.
· Annual ROC filings: Under Section
92 of the Act, it is mandatory for a Private Limited Company to file annual
return in the eForm MGT-7 within 6 months from the date of the Annual General
Meeting. Further, Section 137 states that a copy of the Financial Statement
adopted at the Annual General Meeting have to filed with the Registrar within
30 days of the date of the Meeting.
· Corporate Social Responsibility (CSR): A
company having net worth of Rs. 500 Crore or more, or turnover of Rs. 1000
Crore or more, or net profit of Rs. 500 Crores or more in a financial year, has
to make a CSR committee consisting of 3 Directors, out of which at least one
should be an Independent Director. The Committee has to ensure that at least 2%
of the net profit made during preceding three financial years is spent in
furtherance of the CSR Policy.
About the Author:
I am a law student ( Batch 2019)