All forms of entities are expected to carry out the annual compliance. For a public limited company to adhere to the regulations set forth by the Registrar of Companies and the Ministry of Corporate Affairs, such compliance is necessary. Such compliances must be completed by an open restricted organization.
A public company is one that sells its shares to the public, as defined by Section 2(71) of the Companies Act of 2013. A public limited company would also include any company that is a subsidiary of a public company.
There are different types of advantages presented by a public restricted organization which incorporates restricted responsibility, insurance to investors and chiefs and other types of advantages.
Before knowing about the Annual Compliance of Public Limited Company, it’s crucial to learn about the meaning of listed company and other useful things.
A listed company is well defined under the section 2 (52) of the companies act. A listed company is one with shares that are traded on a stock exchange. The term “shareholder” refers to the individuals who own shares in a company. Consequently the investors need to buy into the portions of a public limited company.
But who is the regulatory body of a public limited company?
So the primary regulatory body of a public limited company is the Ministry of Corporate Affairs.
Lets now have a look at the documents required for annual compliance of public limited company:-
Documents Required for Annual Filing of Company
- Incorporation Certificate of the Public Limited Company
- PAN Card
- Incorporation Certificate of the Public Limited Company
- Public Limited Company Financial Statement
- Financial Statements must be audited by independent auditor
- Public Limited Company’s Audit Report and Board Report
- Independent auditor’s report and Board report must be considered
- DSC of Director (Digital Signature Certificate of the Directors)
- Accurate and active DSC of one of the directors must be provided and presented
The company’s audited balance sheet and profit and loss statement are required to be filed with a public limited company. Other account details are also required. The director’s report-related details must be provided with this. Within 30 days of the Annual General Meeting (AGM), the public limited company must comply with this requirement. For this reason, the registrar of companies requires that Form AOC -4 be submitted.
Compliance Certificate from CS
A compliance certificate from a company secretary is required if the company has a paid-up share capital of more than 10 crores or a public-listed company’s turnover is more than 50 crores. A public limited company’s requirements include this. Such a certificate would be according to the prerequisite under Structure MGT-8. The Practicing Company Secretary must provide a secretarial audit report on form MR-3 to any public company with a turnover of 250 crores or more.
Audited Profit and Loss Account
Audited Profit and Loss Account should likewise be submitted to the recorder of Organizations. Form AOC-4 must contain this information. The company must adhere to these compliance requirements in accordance with the ROC and MCA.
Confirmation of the Situation of Registered Office
The organization is expected to have an enrolled office for completing business. Within 30 days of its incorporation, this must be done. In the event that the organization changes the enlisted office of the business then the equivalent should be conveyed to the Registrar of Companies and the Ministry of Corporate Affairs.
The company must provide such notice of the business’s registered office in a prominent location. The public limited company must keep all of these registers at the business’s registered office. For a public limited company, such annual compliance is required.
Register of Member(s)
The public limited company needs to keep a register of individuals. This should be done from the viable date of enlistment of the organization. This member register is supposed to be kept up in accordance with the requirements of Form No. MGT -1.
Any organization which is registered under the provisions of the Companies Act 1956, then its compliance must be done in the time period of 6 months when the rules start being applicable.
Information Regarding Shares and Debentures
Every publicly traded company that issues shares and debentures to the general public is required to keep a specific register pertaining to the shares and debentures held by individual investors. These requirements must be recorded separately in a register using Form MGT-2.
Debt Details
The company is obligated to keep a register of all creditors’ debt details.
Auditor’s Appointment
A business is required to carry out this compliance in accordance with the requirements set forth by the registrar of companies. A public limited company’s auditors must be appointed within 30 days of the company’s incorporation. Such compliance related with the appointment should be recorded as Structure ADT-1. On the off chance that this compliance isn’t done by the board, then, at that point, the individuals include to do such appointment within a time of 90 days
Annual General Meeting
The annual general meeting of the public limited companys must be held every year. The first AGM must be held within nine months of the end of the fiscal year. The members must be informed of the upcoming meeting.
End Note
With this article, we made a thorough analysis on different concepts related to public limited companies. Important concepts that were covered through this article were documents that are required, annual general meeting, appointment of auditors and other necessary concepts as well.
