company-annual-filing

Company annual filing is a mandatory compliance requirement for all companies registered under the Companies Act, 2013. It involves submitting financial statements and other regulatory documents to the Ministry of Corporate Affairs (MCA) within specified deadlines. The annual filing ensures transparency, accountability, and compliance with legal requirements.

Every company, whether private or public, must file its annual returns and financial statements with the Registrar of Companies (ROC). The filings provide details about the company’s financial health, management, shareholding structure, and compliance with corporate laws.

The two primary forms required for company annual filing are Form AOC-4 and Form MGT-7. Form AOC-4 is used for filing the company’s financial statements, while Form MGT-7 contains details of the company’s shareholding, directors, and other statutory disclosures.

Private limited companies, public limited companies, and one-person companies (OPCs) must file Form AOC-4 within 30 days from the conclusion of the Annual General Meeting (AGM). The AGM must be held within six months from the end of the financial year, making the usual deadline for AOC-4 filing October 30th.

Form MGT-7, which is the annual return of the company, must be filed within 60 days from the conclusion of the AGM. For most companies, the deadline falls on or before November 29th each year.

One Person Companies (OPCs) and small companies can file Form MGT-7A instead of MGT-7. This is a simplified version of the annual return designed for smaller entities to ease the compliance burden.

Companies that fail to file annual returns within the prescribed time limits are subject to penalties. The MCA imposes a late filing fee of ₹100 per day for each delayed form, with no maximum cap, leading to significant financial penalties if compliance is not maintained.

In addition to MCA filings, companies must also file their Income Tax Return (ITR) with the Income Tax Department. Companies must file their tax returns using Form ITR-6 if they are not claiming exemption under Section 11 of the Income Tax Act.

If a company’s turnover exceeds ₹1 crore (for business) or ₹50 lakh (for professionals), a tax audit is required under Section 44AB of the Income Tax Act. The tax audit report must be filed before September 30th of the assessment year.

Companies that fail to comply with annual filing requirements may face legal consequences, including disqualification of directors. If a company does not file annual returns for three consecutive years, its directors can be disqualified from holding directorship in any other company for five years.

Companies with a turnover exceeding ₹5 crore must also submit their financial statements in XBRL format, a digital format required for improved financial reporting and compliance monitoring by regulatory authorities.

Foreign companies operating in India through branch offices, liaison offices, or wholly-owned subsidiaries must also comply with annual filing requirements. They must file financial statements, details of their operations, and compliance reports with the MCA.

Startups and newly incorporated companies must also comply with annual filing requirements from their first financial year. Even if there is no business activity, companies must file ‘Nil’ returns to avoid penalties.

Listed companies and companies regulated by SEBI have additional compliance requirements, including quarterly financial filings, disclosures on related party transactions, and corporate governance reports.

Companies planning to raise investments, apply for loans, or undergo mergers and acquisitions must ensure compliance with annual filing requirements. Banks, investors, and regulatory authorities require up-to-date financial statements before approving transactions.