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Public Limited Compliances (XBRL)

All about Compliance of Public Limited Company (XBRL) 

Compliance is to be done in adherence to the laws, regulations, guidelines as stated by the Companies Act, 2013. The Registrar of Companies, i.e. ROC is the sector of the Ministry of Corporate Affairs that handles the compliance of every company that falls under its jurisdiction. Balance sheet & Profit & Loss account is required to be prepared at the end of financial year is mandatory to get his accounts to be audited by CA.
 
XBRL is a standardized communication language in electronic form to express report or file financial statements by Companies. XBRL is only a method of presentation or reporting class of companies shall file their financial statements and other documents under section 137 of the Companies Act, 2013.

All public companies listed in a stock exchange in India and their Indian subsidiaries.
All companies with a turnover of Rs 100 crores or more
All companies with a paid up capital of Rs 5 crores or more
All companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015
(other than banking companies, insurance companies, power companies and NBFCs)
 
In addition to MCA annual return, companies must also file income tax return irrespective of income, profit or loss.

Auditor’s Appointment
 
Within 30 days of incorporation of the company, it needs to appoint an auditor (a chartered accountant) for auditing the financial documents and statements.
Meetings of Board
 
Atleast 4 meetings or 2 Meetings (in case of small company) of the board of directors to be conducted quarterly in an every financial year.
 
Holding of Annual General Meeting 
 
Annual General Meeting of a newly incorporated company should be held within 18 months from the date of registration or 9 months from the date of closing of the financial year, whichever is earlier. Thereafter Annual General Meeting should be held within 6 months from the end of that financial year.

FAQ's on Compliance

AGM is a meeting of Shareholders to be held every financial year to meet and decide upon the approval of Accounts/distribution of dividends/appointment or reappointment of directors and Auditors. First AGM to be held within 9 months from the date of closing first financial year. Subsequent AGM to be held within 6 months from the date of closing of the next financial year.

If any company fails to file annual compliance on time it will lead to additional fees on Rs. 100 per day for each form. Continuous default in annual compliance may also lead to Director Disqualification, Fine & Imprisonment and Strike Off of Company.

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