India accounting requirements at a glance
Every Private Limited Company in India must maintain proper books and records, prepare annual financial statements, and file them with the appropriate authority. Exact obligations scale with company size — small private companies often qualify for simplified reporting and audit exemptions.
Mandatory bookkeeping records
- General ledger (chronological record of all transactions)
- Sales and purchase invoices with supporting documentation
- Bank statements and reconciliations
- Payroll records (if employees)
- VAT/GST records (if registered — see VAT registration)
- Fixed asset register and depreciation schedules
- Director and shareholder resolutions
Most jurisdictions require records be retained for 5–10 years and be available in the local language on request.
Accounting standards
Small private companies in India typically apply local GAAP or IFRS for SMEs. Larger companies and listed entities apply full IFRS. The US uses US GAAP, which is generally not accepted as the primary reporting framework in India.
Audit thresholds
Most jurisdictions exempt small private companies from statutory audit. Typical thresholds: turnover under €10–12M, total assets under €5–6M, and under 50 employees (must meet at least 2 of 3). Companies above the threshold must engage a licensed auditor and file an audited annual report.
Even when audit is not required, an external accountant typically prepares the annual financial statements to comply with local format and tagging requirements (often iXBRL or similar machine-readable formats).
Filing deadlines
| Filing | Typical deadline |
|---|---|
| Corporate income tax return | 6–12 months after financial year end |
| Annual financial statements filed with registry | 6–12 months after financial year end |
| VAT/GST returns | Monthly or quarterly |
| Payroll returns (if employer) | Monthly |
| Annual confirmation/return of company details | Anniversary of incorporation (varies) |
Typical annual cost of accounting & compliance
| Service | Typical USD cost |
|---|---|
| Bookkeeping software (Xero, QuickBooks, local) | $240–$600/yr |
| External bookkeeper (low-volume) | $1,200–$4,800/yr |
| Annual financial statements preparation | $800–$3,500 |
| Corporate tax return | $500–$2,500 |
| VAT/GST returns (quarterly) | $400–$1,200/yr |
| Statutory audit (if required) | $5,000–$25,000 |
Choosing a India accountant
- Check the credential: in most jurisdictions you want a chartered accountant, certified public accountant, or registered tax agent — not just a bookkeeper.
- Confirm international experience if you have cross-border revenue, transfer pricing, or non-resident shareholders.
- Ask about software — Xero, QuickBooks, and local market leaders all have ecosystem integrations that matter for monthly close speed.
- Get the engagement letter — fixed-fee bookkeeping plus a la carte for one-off advice is the most predictable cost structure.
For tax-rate context, see the main India guide. For US-resident owners of India companies, also see the Form 5472 checker if there are reportable transactions with US-related parties.