Annual Return Filing
Every company registered in India, including private limited, limited company, one person company and section 8 company must file annual returns with ROC every year. It requires conducting of an Annual General Meeting and filing annual accounts with ROC. AGM must be held within 6 months from the end of the financial year i.e. 30th September every year. In case of new companies, first AGM should be held within 18 months from the date of incorporation or 9 months from the close of financial year whichever is earlier. Companies Act 2013 mandates that your financial year should start from 1st April and end on 31st March.
Usually, a company is required to file three forms with ROC. MGT 7, which contains details of shareholding structure, change in directorship and details of the transfer of shares during the year if any. AOC4, which contains details and annexure relating to Balance Sheet of the Company, Profit & Loss Account, Compliance Certificate, Registered Office Address, Register of Member, Shares and Debentures details, Debt details and information about the Management of the Company. ADT 1 is filed for auditor appointment.
Important update on Filing of annual returns of defaulting companies
MCA has come up with a one time scheme – CFSS 2020 (Companies Fresh Start Scheme 2020) wherein it allows defaulting companies (which have not filed various returns with ROC) to file returns without any penalties and late fees. Yes, it is a much needed breather and relaxation for companies which have defaulted, and still wanted to carry out business. Now, they can make good of default by filing pending forms with ROC only by paying Normal Fees and get immunity Certificate. Read more about CFSS 2020.
Annual return consists of information and documents that include the Balance Sheet of the Company, Profit & Loss Account, Compliance Certificate, Registered Office Address, Register of Member, Shares and Debentures details, Debt details and information about the Management of the Company. The annual return would also disclose the shareholding structure of the Company, changes in Directorship and details of transfers of securities.
Frequently Asked Questions
What is the Annual Return Filing of a Company?
All Companies are under obligation to maintain the annual accounts which should reflect genuine and authentic information / views of its state and affairs. If even the company does not do any business in the market still it has to comply with the statutory requirement of Annual Return, profit, Balance Sheet and Income Tax Return every year. The fee depends on the capital of the Company.
Is Annual Return needed to be filed by a Company?
Every Company needs to file an annual return. The annual return is also available for public inspection once payment of prescribed fees is made to the Registrar.
What are the Audit requirements under Company Act?
It is mandatory irrespective of capital or turnover of the Company.
Who files the Annual Return?
The Annual return can be submitted by any of its directors but it shall be duly signed by both the directors of the Company and by the Manager or Company Secretary. There are certain cases when there is no Manager / Company Secretary in a Company in such situations signature of both the directors is compulsory.
What do you mean by Financial Statement?
All the Company’S registered with MCA is required to file ‘Balance Sheet and Profit & Loss Statement with Directors’ Report and Auditors’ Report’ in an appropriate format of Company which should contain declaration on the state of solvency of the Company. This is to be done by the directors.