Guidelines and Procedures for Filing Annual Returns by Companies

 

MCA requires all Indian companies – private limited companies, limited liability companies, corporations, and sections 8 companies – to file an annual report every year. Generally, filing annual returns is used to confirm that the company is still in the market, in business, or planning to start soon. A company that fails to file its Annual Return with the MCA for three successive fiscal years may lead to the director of that company being disqualified and to various penalties and punishments under the Companies Act, 2013.

An annual report is required with the MCA by companies (private companies, limited companies, section 8 companies, and so on). The company would also have to file an income tax return, in addition to the MCA annual return.

Annual General Meetings should be held by companies at the end of every fiscal year, before filing the annual return. Within 18 months after incorporation, newly combined companies should hold their first Annual General Meeting. From April 1 to March 31, the financial year begins. At the earliest of the following dates, the following AGM shall be held:

  1. The previous AGM was held 15 months ago

  2. 31st December is the last day of the calendar year

  3. A six-month period following the end of the financial year

In addition to that, MCA

annual returns also require companies to file income tax returns regardless of whether they have profited or lost. Therefore, even abeyant companies with no business deals or trades are responsible for filing their annual income tax returns with the IRS. 

In a nutshell, an annual return contains details about an entity's composition, activities, and financial condition. It is also important to remember that all active companies registered with an appropriate authority must file their Annual Report at the end of every fiscal year.

How to file an annual return :

The following steps explain how to file an annual return for a company:

  1. Organize a meeting :

  • According to Schedule III of the Companies Act, 2013, the company should hire an auditor to research and prepare financial reports.

  • In accordance with the Companies Act, 2013, the Board Report and Annual Report should be prepared by the Secretary.

  1. Prepare or supervise the Board Report and Annual Return for the company, following another board meeting.

  2. Convene an Annual General Meeting and make the necessary declarations. Once the shareholders approve the financial statements of the company at the AGM, they are considered final.

Filing an annual return requires the following documents :

When filing the annual return, the following documents must be attached by every company  

  • Documents related to the Balance Sheet

  • Documents related to the profit and loss account

  • Documents for the Annual Return

  • Documents pertaining to the Cost Audit Report, if applicable

Applicants for registration under the Companies Act 2013 or the Companies Act 1956 are required to have the following E forms to file their annual returns:

  • It is used to file balance sheets for all types of companies. 

  • Profit & Loss Account: This form is required

  • The XBRL balance sheet is filed on form 23AC-XBRL

  • It's used to file the Profit and Loss Account for selected classes of companies 

  • For companies that hold share capital, Form 20B is required

  • For companies with paid-in capital between Rs.10 lakhs and Rs.5 crores, Form 66 is required.

  • Companies without share capital must use Form 21A to file their Annual Return

  • Financial statement and other documents for certain categories need to be filed on form AOC-4 

  • An AOC4 report containing the highlights of a consolidated financial statement is required to be submitted 

  • For the filing of financial statements and other documentation in XBRL format, use Form AOC4-XBRL

  • All companies must submit this form to file their annual return 

Electronic filing of company's annual returns with the MCA :

A simple e-filing process makes it easy for the company to file its annual returns. Take a look at the procedure for filing an annual return:

  1. The Company Forms can be downloaded from the MCA website www.mca.gov.in, by clicking the MCA services menu, and then clicking E-filing. Obtain forms AOC-4 and MGT-7.

  2. Simply complete the E-forms which apply to your business, attach PDF or XML documents, and add the Digital Signatures of the director and the professional who is currently in-charge.

  3. Register as a Business User on the MCA portal in this way. As a registered user, you can login to MCA using your ID and password after this process has been completed.

  4. By logging into the website, you can file your annual return. Online, you can upload all necessary forms.

  5. Uploading the documents automatically generates a Service Request Number (SRN), which is then used for payment options. We offer two types of payment.

  • Save the payment challan for future reference and pay by debit/credit card or online banking

  • If you have paid late, save the challan. Here you should pay on time

  1. After the transaction is completed, you can track the status under MCA services using SRN.
Location: Chennai, Tamil Nadu, India

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