Benefits of Annual filing

Company is a business entity made up of Association of people to carry commercial or industrial enterprise. Opening up and running a company is not an easy task. People should keep many things in mind while and after setting up a company.

There are requirement of many documents, permits when going through several registrations. Formation of Company requires several taxes and other types of filings.

Keeping records of all these events with all the certificates and acknowledgments slips are to be kept carefully. In some ways it is helpful as the solid evidence and it also helps you to file certain documents. All these documentations are carried out under The Companies Act, 2013. It is similar to the act you are required to go through company annual filing.

There are certain documents included under Annual filing with Registrar of Companies. Following documents are balance sheet, profit and loss account statement, annual return and Compliance Certificate. Most of the documents are filed by filing some forms which can be filed online also. It also ensures that you are keeping records of all the important happenings of your company properly. This helps you to run your company without any disturbance and point out any possible loopholes or mistakes. MCA web portal includes the detailed guidelines of annual filing.

Following are the Procedure for Annual return filing

• Preparation of financial statement of Company.
• Appointment of Auditor for Company.
• Conduction of Annual General Meeting (AGM) of the company
• Annual filing of MCA

Business image is an important aspect for any company. People only trust those company those are free from any court case. History has been a proof for many companies that lost their trust from public due to court case or any other form of crime. This may lead to drop in sales in products and services. Compliance is one of parameter to ensure that a company can upholds positive image and has consumer trust. Public Audience gets attracted towards it which will help to build genuine customer and gain their loyalty. Business with sponsors, advertisers, and government requirements gets a help all this effort.

Company that fulfils all the formality of Annual Compliance through successful corporate compliance management generally gets signed quickly and easily.

Time Limit

Benefits with reference to Legal Consequence:

• Avoid lawful results of extra expenses, punishment, detainment
• It fills in as a notice to open, of any data required to be given by the organization under any demonstration
• It may fill in as a substantial confirmation or proof in the official courtroom

Benefits with reference to other than lawful Consequences:

While drafting Board's Report, Companies incorporate some extra data in it which may incorporate

• Companies include Management Discussion in their board report which fills in as a medium of indispensable data to people in general. Organization through this, conveys different tentative arrangements and running tasks, future prospects, qualities of the organization, steps taken or to be taken by organization to defeat its shortcomings and different other data which makes great picture at the top of the priority list of open, government and administrative experts
• Transparency: In case an organization take after every single lawful arrangement of the Act in a moral way, it implies it keeps up straightforwardness among open and makes a picture of moral organization in brains of open, administrative and government
• As these reports are recorded with Government specialists and ensured by experts, it can make more certainty to the general population about the Company and builds up a decent picture according to partners.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.