Know all about the Annual filing of Companies

Annual filing is an important aspect of regulatory compliance for companies. It ensures transparency, accountability and adherence to legal requirements, while also providing stakeholders with essential information about the financial health and operations of the company. In this comprehensive guide, we'll shed light on the intricacies of annual filing and annual filing for companies.

What is Annual Filing of a company?

The term “Annual Filing of a company” refers to the filing of audited annual financial statements, directors' report, annual return and Income Tax Return with the Government Authorities Like Registrar of Companies and Income Tax Department. Every company, whether carrying business or not, must submit these annual filings.

Annual compliances for Companies.

Running a company comes with a set of annual compliance to meet legal and regulatory obligations. The major annual compliance here is to break:

• Board meetings

Companies need to hold board meetings at least 4 times in a year at regular intervals. During which there is a need to discuss financial performance, professional operations, strategic decisions and compliance matters. The minutes of the board meetings should be maintained according to the regulatory requirements.

• Annual General Meeting (AGM)

Each company should organize AGM within six months from the end of the financial year. During the AGM, shareholders discuss the essential matters of the company, approve their financial statements, Shareholders should be provided at least 21 clear days’ notice with agenda of the AGM.

• Dir-3 KYC: Director KYC Submission

It is required for the Directors of companies to update an annual DIR-3 KYC with MCA (Ministry of Corporate Affairs) to update their details. This ensures that accurate information about directors in the MCA database is maintained.

• Appointment of Auditor and E -form ADT -1 filing

It is compulsory for a companies to appoint auditor in Annual general meeting and file form ADT -1 within 15 days of AGM. This form informs about the appointment of auditors to ROC for the upcoming financial year.

• Form AOC-4 (Financial statement) Filing

Companies need to prepare and file AOC-4 with ROC within 30 days from the date of AGM. The form includes balance sheets, profit and loss account and cash flow details.

• Form MGT-7/MGT7A (Annual Return)

Form MGT-7 is mandatory for all companies, while OPCs and small companies can use form MGT-7A and should be filed with ROC within 60 days from the date of AGM. The form includes details about the company's shareholders, directors and other major information as the AGM date.