Public Limited ROC Compliance
Public Limited Company ROC Compliance Guide
Every Public Limited Company in India is mandated to adhere to specific regulatory and compliance procedures outlined by the Registrar of Companies (RoC).
These requirements are established under the Companies Act of 2013 and enforced by the Ministry of Corporate Affairs (MCA). This guide offers insights into the crucial facets of ROC compliance for Public Limited Companies, ensuring that they fulfil their legal obligations efficiently.
Key Regulatory Requirements
1. Appointment of Auditor:
- Within one month from the date of incorporation, the company must appoint an auditor.
- Form ADT-1 is filed for auditor appointments, which can extend up to five years.
2. Statutory Audit of Accounts:
- Each company must prepare its accounts and have them audited by a Chartered Accountant at the end of the financial year.
- The auditor provides an audit report and the audited financial statements, which are then filed with the Registrar.
3. Filing of Annual Return (Form MGT-7):
- Within 60 days of holding the Annual General Meeting (AGM), companies are required to file their annual return.
- The annual return covers the period from April 1 to March 31.
4. Filing of Financial Statements (Form AOC-4):
- Within 30 days of the AGM, companies must file their balance sheet, statement of Profit and Loss Account, and Director’s Report.
5. Holding Annual General Meeting:
- Companies must conduct an AGM every calendar year.
- The AGM should be held within six months from the financial year-end.
6. Preparation of Directors’ Report:
- The Directors’ Report should include all the information mandated under Section 134 of the Companies Act.
Event-Based Compliances
Apart from annual filings, there are various event-based compliances that companies must adhere to. These include:
- Change in Authorized or Paid-up Capital
- Allotment or transfer of shares
- Loans to other companies
- Loans to directors
- Appointment of Managing or whole-time Directors and payment of remuneration
- Opening or closing of bank accounts or changes in signatories
- Appointment or change of Statutory Auditors
For each of these events, specific forms need to be filed with the Registrar within the stipulated time frame to avoid additional fees or penalties.
Consequences of Non-Compliance
Failure to comply with the rules and regulations outlined in the Companies Act can lead to penalties. Companies and responsible officers who default on compliance may face fines for the duration of non-compliance. Additionally, delayed filings result in increased additional fees, which escalate as the duration of non-compliance extends.
Staying on top of Public Limited Company ROC compliances is essential for maintaining good standing and avoiding penalties. By understanding the regulatory framework and fulfilling obligations promptly, companies can ensure legal compliance and smooth operations.
