Annual Filing of Companies in India 2024

September 03, 2016

Registrationwala

Post Update on : 22-11-2024

All the companies registered with the Registrar of Companies (ROC) are required to file an annual return or report with the MCA every year. In this article, we will educate you about the annual filing of company in details.

What is Company Annual Report?

A company’s annual report or annual return is a document that provides information regarding a company’s financial position, activities and composition. It must be filed with the Registrar of Companies (ROC) every year.

All the companies registered with ROC must file an annual report within 60 days of the annual general meeting. The responsibility for filing the annual report lies with the directors of the company. If the directors of the company fail to file the annual report for three years, they will be disqualified for 5 years under Section 164(2) of the Companies Act, 2013.

When annual reports are filed, they help in maintenance of accurate records, ensure legal requirements of MCA, and demonstrate business transparency and credibility. An annual report may also be known as a Statement of Information or Annual Registration in some countries. Also, their filing frequency might differ depending on the country.

Which types of companies should file annual report?

Company annual filings is mandatory for the following companies in India:

One Person Companies
Private Limited Companies
Section 8 Companies
Public Limited Companies

Simply put, all the companies registered under Companies Act 2013 need to file annual reports in India every year.

Documents Required for Annual Filing of Company

For private limited company annual return filing, the following documents are required:

Balance Sheet
Profit & Loss Account
Cost audit report
Memorandum of association (MoA) and Articles of Association (AoA)
Digital Signature Certificate
Audit report
Compliance certificate
List of shareholders with holdings
Board resolution
Last year's tax return
Penalties or compounding offenses

What is the Procedure for Filing Annual Returns?

Once the annual general meeting has taken place, the company must prepare an annual return and file it with the Registrar of Companies (ROC) using Form MGT 7.

To file the annual return successfully, the following steps must be completed:

Step 1: Visit the official portal of MCA and log on to it using the sign in option.

Step 2: Once logged in, the applicant must select the appropriate Form MGT 7 for filing.

Step 3: Fill in all the required details in the form, and ensure they are accurate and up-to-date.

Step 4: Now attach all the required documents, such as balance sheet and, profit and loss account and board resolution.

Step 5: Now, submit the form and pay the applicable fees on the MCA portal.

Step 6: Once the annual return has been filed, you will get a confirmation regarding it. Then, the application will be processed by ROC.

By following the above-mentioned steps, you can file your annual return with ROC and ensure compliance with the Companies Act 2013.

How do I avoid penalties in Annual Return Filing?

Form MGT-7 must be filed within 60 days of AGM. By filing this form every year in a timely manner, a company avoids the burden of penalty due to non-filing. If an annual return is not filed on time, the company will have to pay a penalty of Rs. 5 lakhs.

However, this isn’t all. Every company officer who is in default shall be punishable with a fine or with imprisonment up to 6 months or both. If a company fails to file an annual return continuously, it can be marked as a strike off by ROC.

Before the company is struck off, its business bank account can also be frozen. After the company has been marked as struck off by ROC, the company directors would be disqualified from acting as a director of a company for a total period of 5 years.

Conclusion

Annual return filing is a mandatory requirement of each and every company registered in India under the Companies Act 2013. The annual return must be filed every year within 60 days of the annual general meeting.

If you need assistance in filing annual returns for your company, connect with Registrationwala. We’ll make it easier for you!