{"id":845,"date":"2017-04-06T13:17:11","date_gmt":"2017-04-06T13:17:11","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=845"},"modified":"2020-12-30T11:31:14","modified_gmt":"2020-12-30T11:31:14","slug":"related-party-transactions","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/related-party-transactions\/","title":{"rendered":"Related Party Transactions in Private Limited Company"},"content":{"rendered":"<p>[fusion_builder_container hundred_percent=&#8221;no&#8221; equal_height_columns=&#8221;no&#8221; menu_anchor=&#8221;&#8221; hide_on_mobile=&#8221;small-visibility,medium-visibility,large-visibility&#8221; class=&#8221;&#8221; id=&#8221;&#8221; background_color=&#8221;&#8221; background_image=&#8221;&#8221; background_position=&#8221;center center&#8221; background_repeat=&#8221;no-repeat&#8221; fade=&#8221;no&#8221; background_parallax=&#8221;none&#8221; parallax_speed=&#8221;0.3&#8243; video_mp4=&#8221;&#8221; video_webm=&#8221;&#8221; video_ogv=&#8221;&#8221; video_url=&#8221;&#8221; video_aspect_ratio=&#8221;16:9&#8243; video_loop=&#8221;yes&#8221; video_mute=&#8221;yes&#8221; overlay_color=&#8221;&#8221; video_preview_image=&#8221;&#8221; border_color=&#8221;&#8221; border_style=&#8221;solid&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221; padding_left=&#8221;&#8221; padding_right=&#8221;&#8221; type=&#8221;legacy&#8221;][fusion_builder_row][fusion_builder_column type=&#8221;1_1&#8243; layout=&#8221;1_1&#8243; background_position=&#8221;left top&#8221; background_color=&#8221;&#8221; border_color=&#8221;&#8221; border_style=&#8221;solid&#8221; border_position=&#8221;all&#8221; spacing=&#8221;yes&#8221; background_image=&#8221;&#8221; background_repeat=&#8221;no-repeat&#8221; padding_top=&#8221;&#8221; padding_right=&#8221;&#8221; padding_bottom=&#8221;&#8221; padding_left=&#8221;&#8221; margin_top=&#8221;0px&#8221; margin_bottom=&#8221;0px&#8221; class=&#8221;&#8221; id=&#8221;&#8221; animation_type=&#8221;&#8221; animation_speed=&#8221;0.3&#8243; animation_direction=&#8221;left&#8221; hide_on_mobile=&#8221;small-visibility,medium-visibility,large-visibility&#8221; center_content=&#8221;no&#8221; last=&#8221;true&#8221; min_height=&#8221;&#8221; hover_type=&#8221;none&#8221; link=&#8221;&#8221; border_sizes_top=&#8221;&#8221; border_sizes_bottom=&#8221;&#8221; border_sizes_left=&#8221;&#8221; border_sizes_right=&#8221;&#8221; type=&#8221;1_1&#8243; first=&#8221;true&#8221;][fusion_text]<\/p>\n<p style=\"text-align: justify;\">Accounting Standard 18 of <strong><a href=\"https:\/\/www.icai.org\/\">ICAI<\/a><\/strong> deals with &#8220;Related Party Disclosures&#8221;,\u00a0 Related Party means the \u201c Parties that are considered to be related during the reporting period and one party has the ability to control the other party or to exercise significant influence over the other in making financial\/operating decisions&#8221; related party transactions means \u201ca transfer of resources or obligations between related parties,\u00a0 regardless of whether or not a price is charged. The objective of this Standard Related Party Disclosures is thus to establish the requirements for disclosure of:<\/p>\n<ul style=\"text-align: justify;\">\n<li>related party relationships for a\u00a0<strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/private-limited-company\/\">private limited company<\/a><\/strong>; and<\/li>\n<li>transactions between a reporting enterprise and its related parties.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>The following are the related parties as per AS- 18<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>Holding Companies, subsidiaries, and fellow subsidiaries<\/li>\n<li>Associates and joint ventures<\/li>\n<li>Individuals ( incl . their relatives ) \u2013 having the voting power giving them control or significant influence<\/li>\n<li>The key management personnel including their relatives<\/li>\n<li>The enterprises were controlling individual or the key managerial personnel has significant influence<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>However, the disclosure is mandatory for the following categories of the companies:<\/strong><\/p>\n<p style=\"text-align: justify;\">Companies which are listed or they are in process of listing<\/p>\n<ul style=\"text-align: justify;\">\n<li>The banks and the financial institutions and the insurance companies<\/li>\n<li>Enterprises who have a turnover of less than Rs 50 Cr<\/li>\n<li>Enterprises who have a turnover of less than Rs 10 Cr<\/li>\n<li>The holding\/subsidiary company of any of the above<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Thus if a <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/private-limited-company\/\">private limited company<\/a><\/strong> does not fall in any of these categories, then after having been applicable earlier, it shall continue to apply unless it is not covered in any of the categories for 2 consecutive years. AS-18 also makes it mandatory to disclose the transaction with the key management personnel.<\/p>\n<p>Apply for <a href=\"https:\/\/www.legalraasta.com\/private-limited-company-registration\/\">private limited company registration<\/a> today with <a href=\"https:\/\/companyregistrationonline.in\/\">Company Registration Online<\/a>.<\/p>\n<blockquote><p><strong>Related Article<\/strong>&#8211;<\/p>\n<p><a href=\"https:\/\/companyregistrationonline.in\/blog\/fdi-private-limited-company\/\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;FDI in a Private Limited Company | Company Registration Online&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:14721,&quot;3&quot;:[null,0],&quot;10&quot;:2,&quot;11&quot;:3,&quot;14&quot;:[null,2,0],&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}\">FDI in a Private Limited Company<\/span><\/a><\/p>\n<p><a href=\"https:\/\/www.legalraasta.com\/blog\/audit-private-limited-company\/\">Auditing Requirements of Private Limited Company<\/a><\/p><\/blockquote>\n<p>[\/fusion_text][\/fusion_builder_column][\/fusion_builder_row][\/fusion_builder_container]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[fusion_builder_container hundred_percent=&#8221;no&#8221; equal_height_columns=&#8221;no&#8221; menu_anchor=&#8221;&#8221; hide_on_mobile=&#8221;small-visibility,medium-visibility,large-visibility&#8221; class=&#8221;&#8221; id=&#8221;&#8221; background_color=&#8221;&#8221; background_image=&#8221;&#8221; background_position=&#8221;center center&#8221; background_repeat=&#8221;no-repeat&#8221; fade=&#8221;no&#8221; background_parallax=&#8221;none&#8221; parallax_speed=&#8221;0.3&#8243; video_mp4=&#8221;&#8221; video_webm=&#8221;&#8221; video_ogv=&#8221;&#8221; video_url=&#8221;&#8221; video_aspect_ratio=&#8221;16:9&#8243; video_loop=&#8221;yes&#8221; video_mute=&#8221;yes&#8221; overlay_color=&#8221;&#8221; video_preview_image=&#8221;&#8221; border_color=&#8221;&#8221;  [&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[558],"tags":[],"class_list":["post-845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-registration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rules related to Related Party Transactions in private limited company<\/title>\n<meta name=\"description\" content=\"Rules related to Related Party Transactions in private limited company, As per the Accounting Standard 18 which deals with \u2013 \u2018 Related Party Disclosures ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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