Companies registered in India need to file an annual return in form AOC-4 and MGT-7 with the Registrar of Companies (ROC) and also the Income Tax Return (ITR) after the financial statement is ready for the year ending on 31st March every year. These returns are mandatory and time bound.
The Company Annual Return is the process by which a company files its annual report to the Registrar of Companies and Income Tax Department for the previous year. These are mandatory filing and, if not complied, attracts severe penalty and other consequences under the law. The books of account or say financial statement plays a pivotal role to file the ITR and ROC Returns. In the following section, we are discussing every aspect of the annual return of a company in a systematic manner.
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Documents Required for Company Registration
Newest Company
Incorporated in 2019-20 On or After 1 January
Partner DIN KYC
Income Tax Return
New Company
Incorporated in 2019-20
On or Before 31 December
Partner DIN KYC
Income Tax Return
Form ADT-1
Form AOC-4
Form MGT-7
Old Company
Incorporated Before FY 2019-20
Partner DIN KYC
Income Tax Return
Form ADT-1
Form AOC-4
Form MGT-7
Step Wise Process For Company Annual Filing
01
Check The Applicability Of Returns And Their Due Date
Well, refer to the date of incorporation of your company and based. On that that you will know what returns are to be filed. If the company is incorporated on or before 31st December 2019, then Both ROC Returns as well ITR is filed. However, for newly incorporated companies after 1st January 2020, only ITR is necessary. Of course, director KYC is applicable in both cases.
02
Check Validity of Digital Signature of Directors
The ROC return and ITR are filed electronically after its authentication by the digital signature of the directors. Check the validity of the digital signature, and if expired, please take steps to renew the same.
03
Obtain Complete Bank Statement and Identify Transactions
Bank statements are the basis for accounting. Please obtain the bank statement for the period starting 1st April and ending on 31st March of the financial year. We suggest you mention the details of the party and the nature transaction against each entry of the bank statement.
04
Reconcile Your Books and Confirm Balance from Parties.
Now accumulate all the invoices raised and bills of expenses. Please note we follow the accrual accounting system, hence include all the invoices or statements even if the same is unpaid. Further, reconcile with GST and TDS Returns. Ask for ledger from significant parties and reconcile the balance as on 31st March for accuracy of financial statement.
05
Contact Us, We will do rest
Well done, now is the time for your consultants to prepare a financial statement, get the same confirmed from you. Then send the books of account for statutory audit of the financial statement. We will further assist you in holding AGM and do necessary ROC & ITR Filing for your company.
Six Stages of Company Registration in India
01.
Director KYC
Every director of a private limited company has to submit their updated residential address, current mobile number, and email address to the ROC in form DIR-3(KYC). The filing of directors KYC is mandatory for every person who holds a DIN Number, and if not complied, the DIN gets deactivated.
04.
Filing of Form ADT-1
A company is a separate and distinct legal entity. It is thus under a legal obligation to file its Income Tax Return during the year 2020-21, even if the company existed even for one day in fiscal 2019-20. The audited financial statement and the opinion expressed by the independent auditor in the audit report are the basis of preparation for the income tax return of the company.
02.
Statutory Audit of Company
After the end of the financial year, every company must prepare a financial statement which consists of Balance Sheet and Profit & Loss Account. The financial statement then must be audited by an Independent CA in whole-time practice.
05.
Filing of Form ADT-1
Form ADT-1 is prescribed eform for filing intimation about appointments or changes in the auditor of the company. The annual general meetings are held to conduct four activities, such as approval of financial statements, declaration of dividend appointment of directors, and to consider the auditor's appointment or reappointment.
03.
ITR of Company
A company is a separate and distinct legal entity. It is thus under a legal obligation to file its Income Tax Return during the year 2020-21, even if the company existed even for one day in fiscal 2019-20. The audited financial statement and the opinion expressed by the independent auditor in the audit report are the basis of preparation for the income tax return of the company. The delay in filing the ITR has its perils.
06.
Filing of Form AOC-4
In form AOC-4, the company files its financial statement and directors report as required under the law. This is also known as financial filing to the roc by a company. The audited balance sheet, profit, and loss account, auditors report, and directors report are the mandatory attachments.
FAQ's
What's is the punishment for not maintaining the books of account?
The failure in complying with the requirement of preparing and maintaining the books of account of the company at the registered address results in Imprisonment of one year or with fine which shall not be less than 50,000 but may extend to 5,00,000.
Can i file belated Income Tax Return for the Company?
In case the company could not file the ITR within its due date then still the ITR can be filed with penalty ranging from Rs. 1,000/- to 10,000/-. However, late filed ITR is known as belated return. In case of belated ITR no loss of business or accumulated depreciation can be carried forward. It may be noted that the late ITR can be filed only upto 31st March of the assessment year.
My company has no transaction, do I still have to file ROC Returns and ITR?
Yes, every company which is registered under the companies act must file the annual roc return and ITR within its due date. However, for newly incorporated companies, there is some relaxation on time of holding the AGM. To help companies with NIL or up to less than ten transactions during the financial year, we have straightforward pricing.
What are the documents required for filing ROC Return for the company?
The essential documents are balance sheet, profit & loss account, and audit report for filing the ROC Returns. However, in the annual return of the company information concerning shares, registered address changes of any during the financial year. We would need all ROC filing done during the fiscal year.
When and where to conduct the AGM of the company?
The annual general meeting is generally conducted at the registered address of the company. However, an AGM can be held at any other address within the city where the company has its registered address. Please note that the AGM can not be held on a Sunday and public holiday and the best time is from 9:00 am to 6:00 pm.
