All types of business organization may it be Limited Liability Partnership, Sole Proprietorship, Hindu Undivided Family or a Public or Private Company have to file compliances at regular intervals.
In general, companies are divided into two major categories, Private Limited Company and Public Limited Company.
Under Section-2 (68) of the Companies Act, 2013 the definition of Public Company is prescribed. According to the Companies Act, 2013 a Public Company is not a Private Company and has a minimum paid-up Capital of minimum five-lakh rupees or higher or as may be prescribed.
All types of business organization may it be Limited Liability Partnership, Sole Proprietorship, Hindu Undivided Family or a Public or Private Company have to file compliances at regular intervals. The reason for filing compliances is in order to fulfil all the legal obligations as prescribed under different statutes. One of the important cause of filing compliance is to ensure transparency and accountability within the business structure.
Out of all the other business structures, a Public Company is subjected to more compliances and the money of Public are involved who subscribe to the securities of the Company by dealing in Stock exchange.
Annual Compliances needed by a Public Limited Company
As a Public Company is subjected to more annual compliances as compared to any other kinds of Companies as the money of the public is involved, hence it is made mandatory to promote investor protection.
Every Public Company is mandated to file annual returns to Companies House at least once in every twelve months. If such compliance has not to be filed or the company has failed to file may it be for any reason, it will be deemed as criminal offences and the officers of the company would be liable to pay fine.
Some of the important Compliances:
· E-FORM DPT-3 i.e. Returns of any deposits
· MR-1 i.e. Appointment of Managing director according to Section-196
· DIR-12 i.e. Appointment of women and independent director under Section 149
· MGT-14 i.e. Appointment of internal auditor according to Section-138
In addition to these, if the annual turnover or the contribution of the company exceeds by the amount prescribed then other details like Nomination and Remuneration Committee, Vigil Mechanism are also needed to be filed along with the ROC.