Public companies especially those listed have a stricter compliance compared to their private counterparts since they interact with a large number of stakeholders in their corporate operations. The following are the key annual compliances for listed companies in India:

Annual General Meeting (AGM): 

• Compliance: Based on the Companies Act , a listed company is required to hold an AGM within 6 months after the end of the financial year i.e., by September 30 and not later than fifteen months from the previous AGM. 

• Purpose: For issuing of the annual accounts, appointment/reappointment of directors, declaration of dividends and other related matters. 

Filing of Annual Return (MGT-7 Form): 

• Compliance: Has to be delivered to the company within 60 days from the end of the AGM. 

• Purpose: It is an form that contains information regarding financial data, shareholding structure, and management of the company

Filing of Financial Statements (Form AOC-4 XBRL): 

• Compliance: Annual financial statements which consist of balance sheet, profit and loss account, cash flow statements are required to be transmitted to the RoC at least within a period of 30 days from the date of AGM. 

• Purpose: It is a machine-readable XBRL (Extensible Business Reporting Language) format which is a primary source of financial information, to facilitate shareholders’ evaluations, to provide accurate and comprehensive information about the company. 

Quarterly Compliance: 

• Compliance: Each of the listed companies is required to provide its quarterly financial results to the stock exchange no later than 45 days after the end of the respective quarter (60 days in case of the last quarter). 

• Purpose: To make an available financial report to an investor in order to give him/her a glimpse of the nature of the company's financial status. 

Corporate Governance Report (Regulation 27(2) of SEBI (LODR) Regulations):

• Compliance: In particular, the report should be filed within 15 days from the end of each quarter. 

• Purpose: It gives information about compliance with the codes on corporate governance standards.

Shareholding Pattern (Regulation 31 of SEBI (LODR) Regulations):

• Compliance: Consequently, with the help of providing the shareholding pattern of the company, the report has to be filed with the stock exchange within at least 21 days of each quarter.

• Purpose: This compliance enhances transparency regarding the company’s ownership structure and ensures compliance with the regulatory requirements for the benefits of the investors; 

Reconciliation of Share Capital Audit Report:

• Compliance: Made available within 30 days from the end of each quarter to the stock exchanges in which the company’s securities are traded. 

• Purpose: In order to equalise the total share capital of the concerned company with the total share capital of the depositories and RTA. 

Secretarial Audit Report (Form MR-3): 

• Compliance: This requirement is mandatory for listed companies and is to be submitted to the shareholders in the annual reports. 

• Purpose: Form MR-3 is prepared by a practising company secretary which highlights the governance standards of the company by capturing the compliances which the company has met during the financial year under review. 

Business Responsibility and Sustainability Report (BRSR):

• Compliance: Compulsory for the companies who feature in top 1000 listed companies based on the size of their market capitalization. 

• Purpose: To report on different aspects of Environment and Social Governance in order to inform stakeholders about the company’s performance. 

Annual Compliance for Companies

Every company whether it is listed or not, will have to file certain returns every year for compliance purposes. These include: 

Annual General Meeting (AGM): 

• Compliance: Must be held within six months from the end of the financial year. 

• Purpose: Pass the resolutions such as approval of financial statements, payment of dividends, appointment of directors among others.

Annual Return (Form MGT-7): 

• Compliance: These are lodged within 60 days from the company’s Annual General Meeting. 

• Purpose: It contains information on the company directors, shareholders and changes in either of the two during the year. 

Financial Statements (Form AOC-4): 

• Compliance: To be submitted not later than thirty days after the holding of the AGM. 

• Purpose: The financial statements such as balance sheet, profit and loss statement, cash flow statement and auditor report etc.  are required to be transmitted to the RoC at least within a period of 30 days from the date of AGM.

Directors Report: 

• Compliance: It is, however, included in the annual report and then at the same time submitted with the financial statements.

• Purpose: They reflect the detailed information on the company’s operation, its financial and legal standing.

Statutory Audit: 

• Compliance: It is mandatory for all the companies to get their accounts audited by a Chartered Accountant at least once in a year. 

• Purpose: For the purpose of checking financial records’ accuracy, as well as the adherence to the accounting standards. 

Board Meetings: 

• Compliance: There has to be a minimum of four board meetings in a given year and the maximum gap between any two board meetings cannot exceed one hundred and twenty days. 

• Purpose: In order to come up with and settle on concerns that are both strategic and operational to the company. 

Annual Compliance Certificate (where stakeholder’s paid-up share capital is Rs. 10 crores or more) in Form MGT-8:

• Compliance: Every company is expected to attach a compliance certificate from the company secretary for the annual return document. 

•  Purpose: This report captures whether the company has complied with all the provisions of the Companies Act.

Maintenance of Statutory Registers: 

• Compliance: Some of the important registers that are required to be kept by the companies include the register of members, directors, charges and many more. 

• Purpose: It is to ensure accurate and up-to-date records of key company information, such as its shareholders, directors, and charges, which are required for legal compliance and transparency

Differences Between Listed and General Company Compliance

• Scope: Complicated compliance includes; quarterly results, Corporate governance reports, SEBI regulation and so on that listed companies must file. 

• Frequency: They are usually required to report more frequently than other companies for instance on quarterly basis and on their shareholders’ structure. 

• Scrutiny: SEBI has some regulatory oversight in this respect.

Cost of annual compliance for companies

The cost of annual compliance for companies varies based on the type of company and the complexity of its operations. Here is an overview of the typical costs for different types of companies in India:

1. Private Limited Company (PLC)

• Annual ROC Filing Fees: ₹1,000 to ₹10,000 (depending on the authorized capital)

• Auditor's Fees: ₹10,000 to ₹50,000 (varies based on turnover and company size)

• Tax Filing: ₹5,000 to ₹15,000 (professional fees)

• Total Cost: ₹30,000 to ₹1,00,000 annually

We, at Instabizfilings provide an annual compliance package covering all the mandatory compliances applicable to a private limited company at just INR 14,998/- inclusive of all taxes.

2. One Person Company (OPC)

• ROC Filing Fees: ₹500 to ₹1,500

• Audit Fees: ₹5,000 to ₹15,000 (audit is mandatory if turnover exceeds ₹2 crore)

• Tax Filing: ₹2,500 to ₹5,000

• Total Cost: ₹15,000 to ₹30,000 annually

We, at Instabizfilings provide an annual compliance package covering all the mandatory compliances applicable to a one person company at just INR 14,160/- inclusive of all taxes.

3. Limited Liability Partnership (LLP)

• Annual Filing Fees (Form 11 & Form 8): ₹1,000 to ₹2,000

• Audit Fees (if applicable): ₹10,000 to ₹20,000 (audit required if turnover exceeds ₹40 lakh)

• Compliance Costs: ₹5,000 to ₹10,000 (for maintaining records, filing forms)

• Total Cost: ₹10,000 to ₹40,000 annually

We, at Instabizfilings provide an annual compliance package covering all the mandatory compliances applicable to a limited liability partnership at just INR 4,720/- inclusive of all taxes

Factors Affecting Compliance Costs:

• Size of the company (authorized capital and turnover)

• Type of industry

• Number of transactions and complexity of operations

• Geographical location (some professionals may charge differently depending on location)

These costs include professional fees for filing returns, audit fees, and other secretarial services, and can vary based on the service provider's expertise.

Conclusion

 It is mandatory for both the listed and non-listed corporate to produce these documents at least once in a year for the better disclosure and control of their legal obligations. Even though the companies listed have more and more frequent reporting obligations to prepare due to their public listing, it is crucial for all the companies to make sure they meet their statutory obligations and thus, sustain their corporate and legal reputation.

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