John Miller (Business Strategist) 23 September 2020

Is it required to do a company audit?

Is it required to do a company audit of a private limited company registered as a startup?

Quick Summary

Yes, a company audit is a statutory requirement for all private limited companies registered under the Companies Act, 2013, regardless of their startup status. Every incorporated company must have its books of accounts audited annually by a practising Chartered Accountant. This is a mandatory compliance measure to ensure the smooth functioning of the business and avoid any defaults.

3 Replies

Adv Vinay Mathur + 8447131770 (Advocate) 23 September 2020

Yes it a statutory requirement to have a auditor. read sec 139 of company act.

kavksatyanarayana (subregistrar/supdt.(retired)) 23 September 2020

Yes. It should be audited.

LegalWizin (Online Legal Service) 25 September 2020

A private limited company is formed under Companies Act,2013. As per the provisions of Companies Act,2013 every company incorporated has to mandatory get its books of accounts audited by a practicing CA at the end of every year since its incorporation. This has to be mandatorily followed irrespective of whether the company is registered as a Startup or not. Apart from getting the books of accounts audited one has to also comply with MCA Compliance for smooth functioning of business without any default in compliance.

To get the company compliance ready do visit: LegalWiz.in