Filing an Annual Return for a Private Limited Company


Filing an Annual Return for a Private Limited Company :

After the end of each financial year, every company (Private Limited Company, Limited Company, One Person Company) must file an annual return. Financial advisors can easily complete the process of filing the annual return for a private limited company. Our article looks at how a private limited company files its annual return.

Accounting records to be maintained :

The requirement of a Book of Accounts for all companies is important not only for compliance with the law, but also so that the company can exercise control over its finances. In 2013, the Companies Act, 2013 made maintaining book of accounts a requirement for all corporations. The Directors may not even know if the company is in the red or in the black without a book of accounts and an accounting system. The industry also has difficulties filing regulatory returns such as service tax returns, VAT returns, TDS returns, etc. In order to maintain a proper accounting record, the following information is essential:


  1. A detailed accounting of all the monies received by and expended by the business as well as the matter regarding which the transaction took place;

  2. The company is responsible for all sales and purchases made by the company;

  3. The total value of the company's assets and liabilities;

  4. This includes any other financial or business transaction.


An accounting software program such as Tally or QuickBooks can be extremely helpful for keeping track of business finances.

The process of preparing the company's financial statements :

Using the company's Book of Accounts, all companies must prepare financial statements. In addition to balance sheets, profit and loss accounts, and other statements and explanations forming part of financial statements, financial statements include any statements that provide information about the financial position, performance, or changes in the financial position of an assessee.

Company appoints auditor :

Within one month of registering the company, all companies must appoint their first auditor. The auditors of the company must be Chartered Accountants or a firm of Chartered Accountants in practice. Auditor appointments are not available to the following parties / entities:


  • An organization;

  • (Regardless of whether the person is qualified as a Chartered Accountant);

  • An employee of the company who is a Partner or Director;

  • An individual who owes a company money;

  • An individual who works full time elsewhere;


Keeping in mind that the Auditors of the Company will be independent and not have a bias towards them is very important.


Auditors tend to be appointed for a fixed period, expiring on the conclusion of the Annual General Meeting. The company may re-appoint the same Auditor or replace the Auditor.

Performing an audit of the company's financial statements :

Management of the Company relies heavily on audit. The Companies Act, 2013 states that every company must appoint an auditor to audit the company's accounts. Individual auditors are to present their report on the accounts to the board of directors. Following the appointment of the auditor by the company, the auditor will be responsible for auditing its financial statements and reporting on the accounts of the company to the members. Aside from stating whether or not the accounts of the company contain a true and fair view of its current situation, the auditor is also required to state whether the accounts are properly qualified in the report.


As an Auditor, if you are not satisfied with any information / clarification provided by the Company in its financial statements, or you have any reservations about the accounts or books of accounts maintained by the Company, then if you feel that the information / clarification is not sufficient, then the Auditor can qualify the Audit Report in order to bring the facts to the stakeholders' attention.

Annual General Meeting :

Company shareholders meet every year at an Annual General Meeting. Under California's Companies Act, 2013, every company except one-person companies must hold an annual meeting. This is a requirement for all companies. Whenever possible, Annual General Meetings must take place within 15 months of the previous one. In most cases, however, the first Annual General Meeting of a newly incorporated company must take place within 18 months from the date of registration of said company.

It is customary for the members of the company to receive the audited financial statements of the company, together with the Auditor's Report and Directors Report, at the Annual General Meeting. On the basis that the Financial Statements of the company are satisfactory to the members, the company can adopt the Corporate Accounts for the coming year after due consideration. It is only after the Shareholders of a company have approved the financial statements of the company in the Meeting that the financial statements are considered final and trustworthy.

Annual Returns for Private Limited Companies :

An audited financial statement must be filed with the Registrar after the Annual General Meeting is completed. Filing an annual return with the Ministry of Corporate Affairs is the process of submitting the audited financial statements of a company in the prescribed format. Companies are required to file their annual report within 60 days after their annual general meeting..

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