An Easy Guide to Annual Accounting Compliance (Pvt Ltd & LLP)

2. Legal framework

2.1 Private Limited Company

Key laws & rules:

Companies Act, 2013 + Companies (Accounts), (Audit & Auditors), (Management & Administration) Rules etc.

Income-tax Act, 1961 – corporate tax and TDS provisions.

GST laws – CGST, SGST, IGST Acts and Rules (if registered).

Labour & social security – PF, ESI, Professional Tax (state-wise), Shops & Establishments, etc.

2.2 LLP (Limited Liability Partnership)

Key laws & rules:

LLP Act, 2008 + LLP Rules.

Income-tax Act, 1961 – partnership taxation & TDS.

GST laws – similar to companies.

Labour / PF / ESI – depending on employee strength and state norms.

The core accounting responsibilities are similar (books, vouchers, audit, tax returns), but the ROC/LLP filings and meeting structure differ.

3. Core accounting responsibilities (common to both)

Whether it is a Pvt Ltd or LLP, the foundation of compliance is strong accounting:

Books of accounts

Maintain books on accrual basis and double-entry system:

Cash book, bank book, purchase & sales registers, journal, ledgers.

Fixed asset register, inventory records where applicable.

Support every entry with proper vouchers and invoices.

Periodic closure & review

Monthly/quarterly:

Bank reconciliations

Debtors/creditors ageing

GST & TDS reconciliations

Year-end:

Ledger scrutiny

Provision entries (expenses, income, taxes, bonuses, etc.)

Physical verification of fixed assets and inventory (where relevant).

Financial statements

Balance Sheet, Profit & Loss Account, Cash Flow Statement (for many companies), and Notes to Accounts.

For LLPs, at minimum:

Statement of Assets & Liabilities

Statement of Income & Expenditure / Profit & Loss

Partners’ capital and drawings summary.

Tax computations

Compute book profit, taxable profit, depreciation as per Companies Act / LLP agreement vs. Income-tax, adjustments and final tax liability.

All the later filings (ROC forms, ITR, GST returns, TDS returns) flow from these numbers.

4. Annual compliance – Private Limited Company

4.1 Accounting year & financial statements

Financial year: 1 April – 31 March.

Directors are responsible for true & fair financial statements.

Books must be preserved for prescribed periods (often 8 years).

4.2 Statutory audit

Every company (regardless of turnover) must get its accounts audited by a Chartered Accountant in practice.

Appointment/ratification of auditor and filing of ADT-1 (in many cases at initial appointment).

Auditor issues:

Audit Report under Companies Act

Tax Audit Report (Form 3CA/3CB-3CD) if thresholds under the Income-tax Act are crossed.

4.3 Board meetings & AGM

Minimum number of Board Meetings in a year (with proper notice, agenda, minutes).

Annual General Meeting (AGM) must be held within prescribed timelines after year-end.

Preparation of:

Directors’ Report

Notice of AGM

Minutes of AGM / Board Meetings.

4.4 ROC / MCA annual filings

Key forms (names won’t change often though formats may):

AOC-4

Filed with the financial statements (standalone or consolidated).

Contains Balance Sheet, P&L, cash flow, notes, audit report, directors’ report, etc.

MGT-7 / MGT-7A

Annual return with shareholding pattern, directors & KMP details, meetings, transfers, etc.

DIR-3 KYC

KYC for each director every year.

INC-20A

Certificate of commencement of business (one-time post incorporation, but critical in first year).

Other event-based forms if relevant

Change in directors, capital, registered office, etc. (not strictly “annual” but often coincide with year-end cleanup).

4.5 Income-tax compliance

Corporate Income Tax Return (ITR-6 for most companies)

Filed annually, usually by 31 October / 30 November for audit cases (date may vary depending on government notifications).

Draws from audited financials and tax audit report.

Tax Audit (Form 3CD)

Required once turnover or specified limits are crossed.

Detailed disclosure of books, loans, related party transactions, depreciation, etc.

TDS compliance

Monthly deposit of TDS (by the 7th of next month, with some exceptions).

Quarterly TDS returns – Form 24Q (salary), 26Q (non-salary), 27Q (non-residents).

Proper TDS certificates (Form 16 / 16A) to employees and vendors.

4.6 GST compliance (if registered)

Monthly/quarterly GSTR-1 & GSTR-3B, e-invoicing where applicable.

Annual reconciliation of turnover, ITC, and tax paid – usually via GSTR-9 / 9C if thresholds are met.

Reconciliation with books is a key part of annual accounting.

4.7 Labour & other compliances

PF & ESI registration and monthly/annual returns if employee strength threshold is met.

Professional Tax, Shops & Establishments, state-specific filings.

Maintenance of payroll records, salary structure, and proof of benefits.

5. Annual compliance – LLP

5.1 Accounting year & financials

Same financial year: 1 April – 31 March.

LLP must maintain proper books of account (cash or accrual, as per LLP agreement / rules).

5.2 Audit of LLP

Audit requirement is turnover / contribution based, usually:

If annual turnover and/or partners’ contribution exceeds prescribed thresholds (these can change – to be checked each year), a statutory audit by a CA becomes mandatory.

Even where audit is not mandatory, many LLPs get their books reviewed for internal discipline and funding needs.

5.3 ROC / MCA filings for LLP

Form 11 – Annual Return of LLP

Contains details of partners, contribution, and basic details.

Filed annually within prescribed timeline after end of financial year.

Form 8 – Statement of Account & Solvency

Declares financial position (assets, liabilities, income, expenditure).

Includes a declaration that LLP is solvent and able to pay its debts.

To be filed after year-end within stipulated period.

DIR-3 KYC (for designated partners who are individuals with DIN).

Event-based forms (change in partners, agreement, registered office, etc.) are separate but often reviewed along with annual filings.

5.4 Income-tax compliance

Income Tax Return (ITR-5)

Filed annually showing firm’s income, profit sharing, partners’ interest and remuneration.

Audit report (Form 3CB-3CD) needed if turnover crosses tax audit thresholds.

TDS compliance

Same pattern as companies – monthly payment, quarterly returns, TDS certificates.

Partner-level taxation

Interest on capital and remuneration to partners is allowed as deduction subject to section 40(b) conditions.

Partners are taxed on this income in their individual returns.

5.5 GST, labour & others

GST: Returns and reconciliations same as for companies.

PF/ESI/Professional Tax: Based on employee count and state law.

LLPs with employees have identical HR/statutory duties as companies for those employees.

6. Key differences between Pvt Ltd and LLP from an annual compliance angle

ROC / MCA filings

Pvt Ltd: AOC-4, MGT-7/7A, ADT-1, INC-20A, regular board/AGM documentation.

LLP: Form 8 & Form 11, less formal meeting structure (partners’ decisions instead of board/AGM).

Audit threshold

Pvt Ltd: Statutory audit is mandatory for all companies, regardless of size.

LLP: Audit becomes mandatory only once turnover or contribution crosses specified limits; smaller LLPs can avoid statutory audit if they choose (though tax audit may still apply under Income-tax Act).

Ownership & reporting

Pvt Ltd: Share capital, share certificates, registers of members, transfer records, beneficial interest etc.

LLP: Capital contribution and partners’ capital accounts; no share capital, but contribution and profit-sharing ratio must be tracked.

Investor preference & complexity

Pvt Ltd: Favoured by investors, but comes with stricter governance and more detailed ROC compliance.

LLP: More flexible and simpler for professional practices and closely held businesses, but not ideal for large equity fundraising.

7. Typical annual compliance calendar (high level)

Exact dates can change by notification – this is a conceptual map.

Monthly / Quarterly (both)

Bookkeeping, bank reconciliation

GST returns (GSTR-1, 3B), e-way/e-invoice compliance

TDS deposit & quarterly TDS returns

PF/ESI, PT and payroll filings

Year-end (both)

Finalisation of books, schedules, depreciation workings

Inventory and fixed asset verification

Trial balance & management review

Audit

For Pvt Ltd: statutory audit every year.

For LLP: audit if thresholds are crossed or if partners choose.

ROC / LLP

Pvt Ltd: AOC-4, MGT-7/7A, other event-based forms.

LLP: Form 8, Form 11.

Income Tax

Corporate / firm ITR

Tax audit report (if turnover crosses limits)

Partner / director individual ITRs.

Annual review

Compliance health check: any delayed filings?

Notices from ROC, GST or Income Tax?

Changes required in capital structure, authorised signatories, registered office, bank mandates.

8. Consequences of non-compliance

Late fees & penalties

ROC forms (AOC-4, MGT-7, Form 8, Form 11) attract per-day additional fees, quickly becoming very high.

GST, TDS and ITR have late filing fees and interest on unpaid taxes.

Director / partner risk

Directors can be disqualified for persistent defaults (e.g., failure to file annual returns for consecutive years).

LLPs can be marked as defaulting or face action under the LLP Act.

Strike-off and restoration costs

Inactive / non-compliant entities can be struck off by ROC.

Later restoration involves heavy costs, compounding of offences and litigation.

Business impact

Difficulty in raising capital, getting loans or bidding for contracts because of poor compliance history.

Vendors and clients may avoid dealing with non-compliant entities (especially large corporates who do due-diligence).

9. Why a managed annual accounting & compliance service helps

For founders and partners, the real pain points are:

Tracking multiple laws and dates across ROC, Income-tax, GST, TDS, PF/ESI.

Keeping books clean and current when the focus is on sales, product and hiring.

Coordinating between CA, CS and legal when something goes wrong.

A good annual compliance desk (like what you are building with NoLegalPaisa) usually offers:

Single window for Pvt Ltd and LLP compliance – bookkeeping, ROC, GST, TDS, ITR and labour filings under one plan.

Dedicated account manager coordinating documents, follow-ups and reminders.

Standardised checklists for Pvt Ltd vs LLP (documents, forms, approvals).

Periodic reports – monthly/quarterly snapshots of books and compliance status.

Notice handling support – preliminary drafting and strategy if departments raise queries.

This allows owners to treat annual compliance as a recurring service rather than a crisis at year-end.