Compliance Requirements for Operating a Private Limited Company in India (FY 21-22)

Key compliance requirements for Private Limited companies in India, including tax filings, employee contributions, and government regulations for FY 21-22.

Introduction The Indian government imposes various compliance obligations on companies to regulate business activities. In response to the Covid-19 situation, several compliance regulations, such as TDS rate reductions , have been introduced or modified. Understanding and implementing these changing compliance requirements is essential for stable business operations in India. However, many Korean companies struggle due to the limited expertise of Indian accounting firms in handling foreign-invested businesses . This article provides an overview of the mandatory compliance requirements for Private Limited companies operating in India during the 2021-22 financial year (April 1, 2021 – March 31, 2022) . Note: This article is based on information available as of March 1, 2021. Any changes or new regulations introduced afterward are not reflected. Compliance requirements vary depending on business size, industry, and government policies. 1. Monthly Compliance Requirements The following are the mandatory monthly compliance tasks for Private Limited companies in India. These include: Basic accounting tasks Employee tax deductions (TDS) Professional tax (PT) payments Provident Fund (PF) contributions Employee State Insurance (ESI) payments The applicability and deadlines for these compliance tasks depend on: The previous year’s revenue The number of employees The latest government regulations Companies should verify specific deadlines based on their business structure and operations. 2. Compliance Calendar: Monthly, Quarterly, and Annual Tasks The compliance calendar outlines the quarterly and annual obligations for Private Limited companies in India. Some compliance requirements have deadlines relative to other filings (e.g., "60 days after A is filed"). In such cases, we have included standard internal deadlines used for managing these compliance requirements. Companies can use this checklist to track their monthly and yearly compliance obligations and ensure smooth regulatory adherence. Key Compliance Tasks by Frequency ✅ Monthly Compliance Tasks: Filing GST returns Deducting and depositing TDS (Tax Deducted at Source) Submitting Professional Tax (PT) payments Contributing to Provident Fund (PF) & Employee State Insurance (ESI) ✅ Quarterly Compliance Tasks: Filing TDS returns (Form 24Q, 26Q) Updating financial records and tax reports Reviewing GST reconciliations ✅ Annual Compliance Tasks: Filing the annual Income Tax Return (ITR) Submitting the Annual Financial Statement with the Ministry of Corporate Affairs (MCA) Conducting Annual General Meetings (AGMs) Completing Director KYC submissions Conclusion India’s compliance landscape is complex , and government enforcement mechanisms are still evolving. Businesses often struggle with high compliance costs, frequent regulation changes, and inefficiencies in government systems. In some cases, non-compliance does not immediately lead to penalties , or informal solutions may be available. However, as the Indian government increases efforts to combat tax evasion and black money , the importance of strict compliance adherence is growing. For businesses aiming for long-term stability in India , compliance should be a top priority . This guide aims to help companies navigate India’s compliance requirements and operate smoothly within the legal framework. For inquiries, please contact Yongjoo Yoo at Duru Compliance ( yongjoo@duruper.com ). You could read this article on the KOTRA website by clicking here