NOTE ON ANNUAL FILING FOR COMPANIES
As an entrepreneur you might be thinking, what is Annual Filing for a Company? Why annual filing is important? Which are the forms we need to file? What are the documents required and when is the due date for Annual Filing? You can get answers for all your queries in this blog. Let us look into the questions one by one:
A. What is Annual Filing for a Company?
Every company incorporated / registered in India, including private limited, limited company, one person company and section 8 company shall file financials and annual returns with ROC every year along with any other filings done during the year. This is a mandatory requirement even when there are no other filings or Company has no activities.
These filings can be done once in a year. Hence the terms are used as Annual Filing
B. Why Annual Filing is Important?
For every Company Annual Filing will become important because of following Reasons:
1. The major benefit of filing the ROC returns on time is that the company will be protected from the levy of penalty and punishments.
2. For filing the ROC documents proper documents are required to be prepared by the company as a result company can determine its exact and accurate compliance position.
3. The company will comply with the provisions of the Companies Act 2013 that will help in preventing the intervention of government in affairs of the company.
4. The company who is complaint with the ROC filing procedure can make its better image and helps in improving its business image.
5. When the Annual Filings are not done for consecutive 2 (Two) Financial Years, ROC can suo moto action to remove name from Register of Companies. Timely filing of Annual Accounts and Returns can avoid those Actions form ROC
6. When the Annual Filings are not done for consecutive 3 (Three) Financial Years, Directors of such defaulting Company will become disqualified to Act as Directors in any other Company. Timely filing of Annual Accounts and Returns can avoid disqualification.
C. Which are the forms we need to file? What are the documents required and when is the due date for Annual Filing?
A company is required to file three forms with ROC as a Part of Annual Filing.
1. Form AOC-4: Form AOC-4 will contain details and annexure relating to Balance Sheet, Profit & Loss Account, Cash Flow Statement, Audit Report, Board’s Report with Annexures etc.,
Documents required for Form AOC-4:
i. Financials of the Company (Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Schedules along with notes to Accounts)
ii. Board’s Report along with Annexures
iii. Notice of Annual General Meeting – It is not a mandatory attachment. However, it is a prudent practice to attach it.
These are the basic documents required. Based on the size and turnover, listed and unlisted Companies, additional documents may be required.
Due date for Filing AOC-4 is 30 days from the date of Annual General meeting
2. Form MGT-7 / MGT-7A: Form MGT-7/MGT-7A will contain the details of shareholding structure, change in directorship, Board and General Meeting details and details of the transfer of shares during the year if any etc.,
Documents required for Form MGT-7 / MGT-7A:
i. List of Shareholders
ii. List of Directors
iii. MGT-8 (Only if applicable)
These are the basic documents required. Based on the transactions, additional documents may be required.
Due date for Filing Form MGT-7/MGT-7A is 60 days from the date of Annual General Meeting
YOU MAY NOTE THAT THE MINISTRY OF CORPORATE AFFAIRS HAS EXTENDED THE DUE DATE FOR HOLDING AGM UP TO 30TH NOVEMBER 2021. The notification can be accessed in below link:
https://www.mca.gov.in/bin/dms/getdocument?mds=tLqU1aBUgBji27vFDdJOWg%253D%253D&type=open
YOU MAY FURTHER NOTE THAT THE MINISTRY OF CORPORATE AFFAIRS HAS WAIVED OF THE ADDITIONAL FEES FOR FILING AOC-4 AND MGT-7/7A, UP TO 31.12.2021 FOR THE FILINGS RELATED TO THE FINANCIAL YEAR ENDED 31.03.2021 The notification can be accessed in below link:
https://www.mca.gov.in/bin/dms/getdocument?mds=5qMjdDesXhBDFgDSplqkmA%253D%253D&type=open
ALL COMPNAIES CONDUCTED AGM MUCH BEFORE THE DUE DATE, FOR THE FINANCIAL YEAR ENDED 31.03.2021, CAN FILE AOC-4 AND MGT-7/7A WITHOUT ADDITIONAL FEES UP TO 31.12.2021 IRRESPECTIVE OF THEIR DUE DATE. HOWEVER, THE ADDITIONAL FEES FOR THE DELAY AFTER 31.12.2021 WILL BE CALCULATED FROM THE ORIGINAL DUE DATE.
3. Form ADT 1: This form will be filed for auditor appointment. It is required to be filed only when the Auditor is getting re-appointed and when the Auditor is getting changed.
Documents required for Form ADT-1:
i. AGM Resolution
ii. Eligibility Certificate from Auditor
iii. Appointment Letter from the Company
iv. Acceptance Letter from the Auditor
Due date for filing Form ADT-1 is 15 days from the date of Annual General Meeting
Penalties for Non-compliance in company return filing:
Non-filing of Annual returns entails hefty penalties. Additional fees are Rs. 100 per day per form. These are over and above normal fees charged by MCA and there is no way to reduce the penalties.
For more details you can contact us
email: dcsadvisors@gmail.com
Mobile: 9019421726
Author:
TEAM DCS ADVISORS LLP
Disclaimer:
The Views expressed are solely of the Authour and the contents of this article is to share the Knowledge on subject matter. Expert advice should be sought for your specific circumstances.
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