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Corporate Compliance - Company Annual Filing

Company Annual Filing


Every company which is incorporated in India must conduct its Annual General Meeting and filing of its annual accounts and annual return with ROC. Within 6 months from the end of the financial year, Annual General Meeting should be conducted every year on or before the 30th September. The very first Annual General Meeting should be conducted within 9 months from the closure of financial year which is before and within 18 months from the date of incorporation in case of new companies. Companies Act, 2013 states that your financial year should commence from 1st April and end on 31st March.


Usually, a company is required to file following e- forms with ROC:

  • E-form MGT 7: for Annual Return, which contains details of shareholding structure as on financial year end date, change in directorship and transfer of shares during the year if any. Due date for filing of e-form MGT 7 would be 60 days from the conclusion of AGM.
  • E-form AOC4: for financial statements including report of auditors and directors thereon. The due date for ROC Form AOC 4 would be within 30 days from the conclusion of the AGM.
  • E-form ADT 1: for appointment of statutory auditors. The due date for filing of e-form ADT 1 would be within 15 days from the conclusion of AGM.
  • Other event-based e-forms (a) e-form MGT 14: for filing of special resolution passed at the annual general meeting. (b) e-form DIR 12: for regularization or reappointment of director or managing director

Penalties for Non-compliance in company return filing:

Non-filing of Annual returns entail hefty penalties. These are over and above normal fees charged by MCA and there is only way to reduce the penalties is to file the relevant forms in time. 

Important update for defaulting companies on Filing of annual returns:

The Ministry of Corporate Affairs has come up with the CFSS 2020 (Companies Fresh Start Scheme 2020), which is a one-time scheme wherein it allows defaulting companies (which have not filed various returns with ROC) to file returns without incurring any penalties or late fees. This relaxation given for the companies which have defaulted, but would still wish to conduct business. Through the CFSS 2020 they can make good of their default by filing pending forms with the ROC by only paying the Normal Fees and receiving an immunity Certificate.


PROCESS 

Advisory

 

Eazy Startup is a group of highly qualified CA, CS and business advisors which will help and provide complete procedure in due compliance with the provisions of Companies Act, 2013 for filing of Annual Financial statements and Annual Return along with other relevant forms applicable for the company.

 

Resolutions

Once you obtain an understanding of the procedures involved in filing of Annual Financial Statements and Annual Return of your Company, our advisors shall draft and provide draft of the necessary documents i.e. Board’s Report, AGM Notice, etc.

Filing

Annual Financial Statements and Annual Return of a Company require a professional certification before filing of any e-form with ROC. Eazy Startup advisors will help and assist to get the certification and to file it with ROC.


FAQ'S

Q: What is annual filing?

A: For the companies incorporated in India, Annual filing is a mandatory filing which should be filed along with the essential documents with MCA. (Annual filing includes filing of financials and details of operations of company during the year). The filings are to be completed by 31st of October every year.

Q: Consequences that are to be faced for not filing the annual returns

A: If a company fails to file the annual returns, the company will be considered as defaulting company and will have to bear the penalty which is dependent on the number of days in default till the company files the annual return.

Q: Who are the authorized signatories for attesting the E-forms?

A: All those documents related to annual filings are to be signed by the directors of the company and the financial statements should also be signed by Chartered accountants after auditing.

Q: What are the benefits of annual filings?

A: Following are the benefits of filing annual compliances:

  • It nurtures best compliance practices
  • Ensures high employee retention policies
  • Improves information control
  • Operational performance efficiency
  • Facilitates for availing of bank loan