Business Compliance
Proprietorship, LLP or private limited: what each one actually costs to run
The structure decision is usually argued on liability and prestige. The recurring compliance cost is more concrete, and more likely…
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Business Compliance
ROC filings, statutory registers, TDS and the annual calendar that keeps a company out of default.
The annual calendar
A private company holds a board meeting each quarter and an annual general meeting after the year end, files AOC-4 with its financial statements and MGT-7 or 7A as its annual return, files DPT-3 where it has accepted money that is not a deposit, and every director completes KYC each year. LLPs file Form 8 and Form 11.
Withholding taxes #
TDS is deducted at the point of credit or payment, deposited by the prescribed date of the following month, and reported quarterly, with certificates issued to the deductee. Late deduction attracts interest; late filing attracts a daily fee; and expenses on which tax was not deducted can be disallowed in the assessment.
Cost of default #
ROC late fees accrue per day with no upper limit, and prolonged default can disqualify directors. None of it is discretionary and none of it is negotiable after the fact, which makes a calendar the cheapest compliance tool available.
What you will need
- Certificate of incorporation, MOA and AOA
- Minutes of board and general meetings
- Statutory registers of members, directors and charges
- Audited financial statements and the auditor's report
- TDS returns and challans for all four quarters
- Director KYC and DIN details
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Business Compliance
Proprietorship, LLP or private limited: what each one actually costs to run
The structure decision is usually argued on liability and prestige. The recurring compliance cost is more concrete, and more likely…