Running PVT LTD Company — an Elephant you want to feed
congratulations!!! On registering your PVT LTD company, you might be thinking that all tasks are done and you are ready to work on your startup/idea or brain child. Wait this is not the end of all problems in-fact this is the beginning of all the problems.
There is a huge difference between registering a PVT LTD company and running a PVT LTD company. Running private limited company is as good as bringing an elephant at home. It will eat up more resources and time than you can ever Imagine.
I faced many problems after 1st year of incorporating a company. That is just because, lack of knowledge and lack of good team. Yes team. And when I say team, I am not talking about co-founder or my director. I am talking about two very important job profile in any PVT LTD company that is your CA (Chartered Accountant) and CS (Company Secretary).
Here are the laundry list of the things you need to do for running a PVT LTD company..
- Book keeping (CA)
- Auditing (CA)
- Annual ROC filling (CA)
- Income tax return (CA)
- At least (4) Board Meetings in a year (CS)
- At least (1) shareholder meeting to adopt the Annual Reports of the Company (CS)
- Payment of statutory obligations — Income Tax, GST etc, as and when applicable. (CA,CS)
- Further there are event based accomplices to be monitored, such as changes to capital, directors etc. (CS)
- Internal documentation (CS)
- GSTN (make sure that you need it or you don’t need it. e.g. if you are using foreign services you will need GSTN ) (CA)
Each and every task mentioned above comes with a deadline and if you don’t follow it you will end-up paying huge amount as penalty. Also, in bracket, I have mention about who can help you with that task. This is not the complete list but, good starting point to be in compliance.
Suggestion on choosing CA & CS
Here are the few suggestion for choosing CA and/or CS service.
- Don’t go with big CA/CS or big CA/CS firm. They don’t have time and energy for your basic questions about running company and you will be very small fish for them to catch. Actually, they don’t need more work. They already have enough work in their plate. Also, you will not be working directly with CA/CS. I would prefer to work with CA/CS rather than someone who is still preparing for CA/CS exam.
- Choose CA/CS who are starting out or have 1 or 2 years of experience. They have time for you and they are looking for work. You will be working directly with CA/CS.
- Choose CA/CS service on monthly bases. On Quarterly or Yearly basis you may miss out on few compliances.
- Talk to them on regular bases. Out of sight is out of mind. Make sure they are not missing out on any compliances related to your PVT LTD Company.
- Clarity on charges. Make sure that what are the charges you will be paying to CA/CS and what are the out of pocket expenses.
- Share all info. If possible share all the information about your PVT LTD Company with your CA/CS. It is like, you should not hide about your health with your family Doctor. CA/CA are kind of family Doctor for your PVT LTD Company. More they know, they can help you in a correct way.
If all these things are sorted out you will be able to focus on your actual product or service that you are offering to your customers.
Here are more information about mandatory compliance and DPIIT.
“In the joy of others lies our own, In the progress of others rests our own, In the good of others abides our own, Know this to be the key to peace and happiness”
― Pramukh Swami Maharaj
