Annual Compliance Checklist for Companies

Maintaining compliance is crucial for every company's smooth operation and legal standing. This comprehensive annual compliance checklist covers all essential requirements that companies must fulfill to avoid penalties, maintain good standing, and ensure continuous business operations.

Understanding Corporate Compliance

Corporate compliance refers to the process of ensuring that a company adheres to all applicable laws, regulations, standards, and ethical practices relevant to its business operations. Non-compliance can result in severe consequences including penalties, legal action, loss of business license, and reputational damage.

Ministry of Corporate Affairs (MCA) Compliance

Annual Filings

Form AOC-4 (Financial Statements)

Due Date: Within 30 days from AGM date

Purpose: Filing financial statements with MCA

• Balance Sheet
• Profit & Loss Account
• Cash Flow Statement
• Notes to accounts
• Board reports

Form MGT-7 (Annual Return)

Due Date: Within 60 days from AGM date

Purpose: Annual return filing with company details

• Shareholding pattern
• Board meeting details
• AGM information
• Directors' details
• Company's statutory status

DIN KYC for Directors

Due Date: Annual update by April 30

Purpose: Director Identification Number KYC compliance

• Personal details verification
• Address proof update
• Digital signature validation

Board Meetings

Minimum Board Meetings

Requirement: Minimum 4 board meetings per year

• One meeting every quarter
• Maximum 120 days gap between meetings
• Proper notice and agenda
• Minutes of meetings
• Attendance records

Annual General Meeting (AGM)

Due Date: Within 6 months from financial year end

Requirements:

• 21 days advance notice
• Special resolutions if required
• Auditor appointment/reappointment
• Director appointments
• Financial results approval

Special Resolutions

Special resolutions required for:

• Alteration in Memorandum of Association
• Alteration in Articles of Association
• Change in registered office
• Change in object clause
• Increase in authorized capital
• Appointment of managing director
• Related party transactions above limits

Tax Compliance

Income Tax Compliance

Tax Audit Report

Due Date: September 30 of the assessment year

Applicability: If turnover exceeds ₹1 crore

• Form 3CA/3CB filing
• Books of accounts audit
• Tax compliance verification
• Transfer pricing documentation (if applicable)

Income Tax Return Filing

Due Date: July 31 of the assessment year

Requirements:

• Form ITR-6 for companies
• Complete tax computation
• Supporting schedules and documents
• Digital signature certificate

Transfer Pricing Compliance

Due Date: October 31 of the assessment year

Applicability: If related party transactions exceed ₹1 crore

• Form 3CEB filing
• Transfer pricing documentation
• Arm's length price analysis
• International transactions reporting

GST Compliance

GST Returns

Monthly/Quarterly Returns:

• GSTR-1: Outward supplies (11th of next month)
• GSTR-3B: Summary return (20th of next month)
• GSTR-4: Composition scheme return (18th of month after quarter)
• GSTR-9: Annual return (December 31)
• GSTR-9C: Audit report (December 31)

Input Tax Credit Reconciliation

Annual Requirement:

• Reconciliation of ITC claimed vs. available
• Matching with supplier returns
• Reversal of ineligible ITC
• Proper documentation maintenance

Labour Law Compliance

Employee Provident Fund

Monthly Requirements:

• EPF contribution remittance by 15th of next month
• EPF returns filing (ECR)
• New employee enrollment
• UAN generation and activation
• Annual EPF audit (if applicable)

Employee State Insurance

Monthly Requirements:

• ESI contribution remittance by 15th of next month
• ESI returns filing
• New employee registration
• Monthly contribution reports

Professional Tax

State-specific Requirements:

• Professional tax registration
• Monthly/quarterly payments
• Annual returns filing
• Employee registration

Labour Law Compliances

Annual Requirements:

• Factory license renewal
• Shop and establishment license
• Contract labor license (if applicable)
• Minimum wages compliance
• Working hours and overtime compliance
• Safety and security compliance

Regulatory Compliance

Industry-Specific Licenses

FSSAI License

Annual Requirements:

• Annual return filing
• License renewal
• Compliance with food safety standards
• Quality control measures

Drug License

Pharmaceutical Companies:

• Manufacturing license renewal
• Sales license renewal
• Good manufacturing practices compliance
• Quality assurance documentation

Environmental Clearances

Manufacturing Companies:

• Consent to establish/operate renewal
• Air/water pollution control compliance
• Waste management compliance
• Environmental audit

Banking and Financial Compliance

Foreign Exchange Compliance

If dealing in foreign exchange:

• FEMA compliance
• Foreign investment reporting
• Export-import documentation
• External commercial borrowings

SEBI Compliance

Listed Companies:

• Quarterly results filing
• Annual report filing
• Corporate governance compliance
• Insider trading regulations
• Related party transaction disclosures

Secretarial Compliance

Corporate Governance

Annual Requirements:

• Board composition compliance
• Independent director appointments
• Audit committee meetings
• Nomination and remuneration committee
• Stakeholders relationship committee
• Corporate governance report

Secretarial Standards

Compliance with SS-1 and SS-2:

• Board meeting procedures
• General meeting procedures
• Minutes maintenance
• Notice and agenda requirements
• Voting procedures

Digital Compliance

Data Protection Compliance

Information Technology Act:

• Data protection measures
• Privacy policy updates
• Cybersecurity compliance
• Digital signature usage

Digital Documentation

Annual Requirements:

• Digital signature certificate renewal
• MCA portal compliance
• E-filing maintenance
• Digital records management

Compliance Calendar

January

• GST December returns
• EPF/ESI December contributions
• Board meeting for Q3 results

February

• GST January returns
• EPF/ESI January contributions
• Transfer pricing documentation

March

• GST February returns
• EPF/ESI February contributions
• Financial year-end preparations
• Board meeting for Q4 results

April

• GST March returns
• EPF/ESI March contributions
• DIN KYC filing
• Annual return preparation

May

• GST April returns
• EPF/ESI April contributions
• Annual return filing (if AGM in April)

June

• GST May returns
• EPF/ESI May contributions
• Annual General Meeting
• Financial statements filing

July

• GST June returns
• EPF/ESI June contributions
• Income tax return filing
• TDS returns (Q1)

August

• GST July returns
• EPF/ESI July contributions
• Annual return finalization

September

• GST August returns
• EPF/ESI August contributions
• Tax audit report filing
• TDS returns (Q2)

October

• GST September returns
• EPF/ESI September contributions
• Transfer pricing filing

November

• GST October returns
• EPF/ESI October contributions
• GST annual return preparation

December

• GST November returns
• EPF/ESI November contributions
• GST annual return filing
• GST audit report filing
• TDS returns (Q3)

Penalties for Non-Compliance

MCA Penalties

• Late filing: ₹100 per day (minimum ₹1,000)
• Annual return delay: ₹100 per day (maximum ₹5,00,000)
• Financial statement delay: ₹100 per day (maximum ₹10,00,000)
• AGM non-compliance: ₹1,00,000 to ₹5,00,000

Tax Penalties

• Income tax: 1% per month on tax due
• GST: ₹10,000 per return or 10% of tax due
• TDS: 1% per month on deducted amount

Labour Law Penalties

• EPF: 5% per annum on dues
• ESI: 12% per annum on dues
• Professional tax: State-specific penalties

Best Practices for Compliance Management

1. Compliance Calendar

Maintain a comprehensive compliance calendar with all deadlines and requirements.

2. Documentation

Keep proper records and documentation for all compliance activities.

3. Regular Monitoring

Regularly monitor regulatory changes and update compliance procedures.

4. Professional Support

Engage qualified professionals for complex compliance requirements.

5. Internal Audits

Conduct regular internal audits to identify compliance gaps.

6. Training

Provide regular training to staff on compliance requirements.

7. Technology Solutions

Use compliance management software for automated tracking and reporting.

Compliance Management System

Key Components

• Compliance Tracking: Monitor all compliance activities
• Deadline Management: Automated alerts for upcoming deadlines
• Document Management: Centralized storage of compliance documents
• Reporting: Generate compliance reports and dashboards
• Audit Trail: Maintain complete audit trail of all activities

Benefits

• Reduced compliance risks
• Improved efficiency
• Better documentation
• Cost savings
• Peace of mind

Conclusion

Maintaining annual compliance is not just about avoiding penalties—it's about ensuring your company's long-term sustainability and reputation. A proactive approach to compliance management helps businesses focus on growth while staying within legal boundaries.

At E-incorp Elite, we provide comprehensive compliance management services to ensure your company stays compliant with all applicable laws and regulations. Our expert team handles all compliance requirements, giving you peace of mind to focus on your core business activities.