Annual Compliance for Companies: Essential Checklist for Indian Startups

Vyapaar Pundit
Jun 21
4 min read

Updated: 3 days ago

Let’s be honest — when you started your company, you were probably thinking about building a product, finding customers, maybe even pitching investors. You weren’t dreaming about MCA portals, annual returns, or board resolutions.

But if you’ve registered your startup as a Private Limited Company in India, there’s a set of yearly rules you just can’t ignore — no matter how new or lean your team is.

This guide is here to walk you through what compliance actually means, why it matters, and what you need to do every year — in plain English, with no legal jargon or scare tactics.

Why Compliance Isn't Just “Paperwork Stuff”

Here’s a question a lot of early-stage founders ask: “Do I really need to worry about compliance right now?”

Yep. You do.

And not just because it’s required by law (which it is). But because:

It helps avoid unexpected fines or legal trouble
Keeps your startup clean on paper — which is a huge plus during fundraising
Shows that you’re not just building fast, but building smart
Keeps your options open for loans, grants, or government support

Basically, it gives your startup a backbone — and shows people you’re in this for the long haul.

Your Startup’s Annual Compliance Checklist (For Pvt Ltd Companies)

If you’ve registered as a Private Limited Company, there are a few non-negotiables you need to check off every financial year. Here they are, explained like a human — not a government site.

1. Board Meetings (Not as Scary as They Sound)

You need to have at least two board meetings every year.

Even if you’re a tiny team with two co-founders, this still applies. These meetings don’t need to be fancy or in-person — a video call works. Just make sure you write down what was discussed and who was present.

Why it matters? It proves your decisions are documented, thought-through, and made as a team — which investors and auditors both appreciate.

2. Annual General Meeting (AGM)

AGMs are like an official yearly review — but only start from your second year.

You’ll need to hold it within 6 months after the financial year ends. This is where the company signs off on financials, audits, and other key decisions.

And yes, even if your shareholders are just you and your co-founder, the meeting still counts.

3. File Your Returns with MCA (The Big One)

There are two forms that must be filed each year with the Ministry of Corporate Affairs:

AOC-4 – This is where you report your annual financial results: income, expenses, balance sheet, the works.
MGT-7 – This one outlines your company structure, directors, and shareholders.

Skipping these? That’s where the fines come in — and they add up fast.

A lot of startups choose to outsource this part. It’s not just about filling a form — it’s about making sure everything’s correct. (This is where we at VyapaarPundit come in — more on that below.)

4. Get Your Books Audited

This surprises many founders: Even if your company hasn’t made money yet, you still need to get an audit done by a Chartered Accountant.

Yes — even ₹0 in revenue still requires a statutory audit. It’s a non-negotiable for Pvt Ltd companies.

5. Director’s Report

Think of this as your company’s yearly story — what happened, what changed, how you stayed compliant.

This report needs to be drafted, reviewed, and signed by the board — then filed with your ROC forms.

It’s not super complex, but it does need to be accurate.

6. DIN KYC (Quick But Important)

Each director in your startup has a unique Director Identification Number (DIN). Once a year, directors need to complete a simple KYC to confirm their identity and update their records.

Forget this step? Your DIN can get deactivated — and that’s a hassle you don’t want when trying to make important decisions for your company.

Other Things You Might Need to File

Depending on how your business operates, these could also apply:

GST returns – If you're GST-registered
TDS filings – If you’re paying employees or vendors and deducting tax
EPF/ESIC – If you’ve hired full-time staff
MSME Form 1 – If clients delay payments over 45 days
Startup India updates – If you’re recognized under DPIIT's scheme

Not sure what applies? You’re not alone. This stuff can get confusing. But guessing (or ignoring it) isn’t the answer — it’s better to ask someone who knows.

Mistakes That Can Set You Back

Even super capable founders mess this up. Here are some of the most common traps:

Assuming “no profit = no compliance” (not true)
Waiting till the last minute, then rushing filings
Not updating MCA when you change address or bring in a new director
Using outdated forms or missing sections

All avoidable — but only if you’re aware.

Let VyapaarPundit Handle It for You

We know you didn’t start a company to deal with paperwork. That’s our job.

At VyapaarPundit, we help founders across India manage annual compliance for companies — from ROC filing services and audit prep to director KYC and everything in between.

You get: