Annual Filing of Compliance
Annual Filing of Compliance
Annual Returns: Companies are typically required to file annual returns with the relevant regulatory authority. Annual returns provide updated information about the company’s registered office address, directors, shareholders, and share capital structure.
Financial Statements: Companies must prepare and file financial statements annually, including balance sheets, profit and loss accounts, and cash flow statements. These financial statements provide a snapshot of the company’s financial health and performance during the fiscal year.
Director’s Report: The director’s report is a part of the annual filing package and provides an overview of the company’s operations, financial performance, and future prospects. It may also include information about corporate governance practices and risk management strategies.
Auditor’s Report: An auditor’s report is prepared by the company’s external auditors and provides an independent assessment of the company’s financial statements. The auditor’s report confirms whether the financial statements present a true and fair view of the company’s financial position and performance.
Income Tax Returns: Companies are required to file income tax returns annually with the tax authorities. Income tax returns provide details of the company’s income, expenses, and tax liabilities for the fiscal year.
Goods and Services Tax (GST) Returns: Companies engaged in the supply of goods or services may be required to file GST returns on a monthly or quarterly basis. Annual GST returns summarizing the company’s GST transactions for the fiscal year may also be required.
Other Regulatory Filings:
Industry-Specific Filings: Certain industries or sectors may have additional regulatory filings or disclosures mandated by sector-specific regulators or authorities.
Compliance Reports: Entities may be required to file compliance reports addressing specific regulatory requirements, such as environmental compliance, labor laws, or corporate governance standards.
Importance of Annual Filing of Compliance:
Legal Compliance: Ensures compliance with statutory and regulatory requirements.
Transparency and Accountability: Provides stakeholders with accurate and up-to-date information about the entity’s operations, finances, and governance practices.
Risk Mitigation: Helps mitigate legal and financial risks associated with non-compliance or inaccurate reporting.
Maintains Good Standing: Maintains the entity’s legal standing and reputation in the business community.
Appointment of Auditors:
Statutory Audit: Appoint a statutory auditor to audit the company’s financial statements for the financial year.
Auditor’s Report: Obtain an audit report from the auditor, providing their opinion on the company’s financial statements.
Annual General Meeting (AGM):
Convening AGM: Hold an Annual General Meeting (AGM) of the shareholders within six months from the end of the financial year.
Approval of Financial Statements: Present and approve the financial statements, director’s report, and auditor’s report at the AGM.
Resolutions: Pass necessary resolutions, including the adoption of financial statements and the appointment/reappointment of auditors.
Annual Return Filing:
Form MGT-7: File the annual return in Form MGT-7 with the Registrar of Companies (RoC) within 60 days from the date of the AGM.
Contents of Form MGT-7: The annual return contains details such as registered office address, particulars of shareholders, directors, and changes therein during the financial year.
Financial Statement Filing:
Form AOC-4: File the financial statements in Form AOC-4 with the RoC within 30 days from the date of the AGM.
Contents of Form AOC-4: The financial statements filed include the balance sheet, profit and loss account, auditor’s report, and director’s report.
Income Tax Compliance:
Income Tax Return: File the income tax return with the Income Tax Department by the due date, typically September 30th of the assessment year.
Tax Audit: If the company’s turnover exceeds the prescribed limit, get the accounts audited by a Chartered Accountant and file the tax audit report along with the income tax return.
GST Compliance:
GST Returns: File Goods and Services Tax (GST) returns with the GST authorities by the due dates specified for monthly or quarterly returns.
Annual GST Return: File the annual GST return by December 31st of the subsequent financial year for Annual Filing of Compliance.
Other Compliance Requirements:
ESI and PF: Ensure compliance with the Employees’ State Insurance (ESI) and Provident Fund (PF) regulations, if applicable.
Secretarial Compliance: Ensure compliance with other secretarial requirements, including maintenance of statutory registers, minutes of meetings, and filings with regulatory authorities.
Record Keeping:
Document Retention: Maintain proper records of financial statements, audit reports, resolutions, and other documents for the prescribed period.
Corporate Records: Keep records of board meeting minutes, AGM minutes, and other corporate governance documents.
Annual Compliance for Private Limited Company
Holding of Annual General Meeting (AGM):
Convening: Hold an AGM within six months from the end of the financial year.
Approval of Financial Statements: Present and approve the audited financial statements, including the balance sheet, profit and loss account, and cash flow statement.
Approval of Director’s Report: Present and approve the director’s report, which includes details about the company’s operations, financial performance, and future prospects.
Resolutions: Pass resolutions for the adoption of financial statements, appointment/reappointment of auditors, and any other agenda items.
- 2. Appointment of Auditor:
Statutory Auditor: Appoint a statutory auditor to audit the company’s financial statements for the financial year.
Audit Report: Obtain an audit report from the statutory auditor, which includes their opinion on the accuracy and fairness of the financial statements.
- Preparation and Filing of Annual Financial Statements:
Balance Sheet: Prepare a balance sheet as of the end of the financial year, showing the company’s financial position.
Profit and Loss Account: Prepare a profit and loss account detailing the company’s income and expenses during the financial year.
Cash Flow Statement: Prepare a cash flow statement reflecting the company’s cash inflows and outflows.
Notes to Accounts: Include explanatory notes providing additional information related to the financial statements.
Filing with Registrar of Companies (RoC): File the annual financial statements, along with the auditor’s report and director’s report, with the RoC within 30 days from the date of the AGM.
- Annual Return Filing:
Form MGT-7: File the annual return in Form MGT-7 with the RoC within 60 days from the date of the AGM.
Contents of Form MGT-7: The annual return contains details such as registered office address, particulars of shareholders, directors, and changes therein during the financial year.
- 5. Income Tax Compliance:
Income Tax Return: File the income tax return with the Income Tax Department by the due date, which is usually September 30th of the assessment year.
Tax Audit: If the company’s turnover exceeds the prescribed limit, get the accounts audited by a Chartered Accountant and file the tax audit report along with the income tax return.
- Goods and Services Tax (GST) Compliance:
GST Returns: File GST returns with the GST authorities by the due dates specified for monthly or quarterly returns.
Annual GST Return: File the annual GST return by December 31st of the subsequent financial year.
- Compliance with Other Regulatory Authorities:
Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI): Ensure compliance with EPF and ESI regulations if applicable.
Other Regulatory Filings: Ensure compliance with any other regulatory filings required by sector-specific regulators or authorities.
- Maintenance of Statutory Registers and Records:
Maintenance of Registers: Maintain statutory registers, including registers of members, directors, and debenture holders.
Record-Keeping: Keep proper records of board meeting minutes, AGM minutes, and other corporate governance documents.