Annual Return Filing is a mandatory compliance for all companies and LLPs registered in India.
The Annual Return provides a snapshot of the company’s structure, ownership, and governance for a specific financial year. It ensures transparency, corporate accountability, and legal recognition with the Ministry of Corporate Affairs (MCA).
Simple Returns Process
Fulfill all the compliance requirements of your Company every year the most convenient way possible – online. With CAFilings excellent support at best price, Annual return filing is a simple process
What is Company Annual Return Filings?
Annual General Meeting must be conducted by companies at the end of each financial year and an annual return must be filed with the Ministry of Corporate Affair to maintain compliance. Normally the financial year starts on April 1st and end on 31st March, in India. Annual General Meeting should be held within 18 months from date of incorporation or 9 months from the date of closing of financial year whichever is earlier, for newly incorporated Companies. Subsequent Annual General Meeting should be held within 6 months from the end of that financial year.
Balance Sheet, Profit & Loss Account, Compliance Certificate, Registered Office Address, Register of Member, Shares and Debentures details, Debt details and information about the Management of the Company all are consisted in annual returns of the company. Shareholding structure, changes in Directorship and details of transfers of securities of the company all are disclose in annual return of the company.
Highlights of Company Annual Filings Process
Separate Legal Entity
A company has a separate legal entity identity, from its owners or shareholders. Companies are having distinct legal entity which is different from its promoters and is treated separate under law with the registration of the company according to the law in force.
Uninterrupted Existence
A company has ‘perpetual succession uninterrupted existence until it is legally dissolved. A Company being a separate legal person doesn’t matter how many shareholders, directors and officers join or leave, company will continue to exist unaffected by the death or other departure of any person.
Borrowing Capacity
A company enjoys better avenues for borrowing of funds. Not only the companies has more options for taking financial assistance from financial institutions and banks but also enjoys an advantage of borrowing funds, the option of issuing debentures secured as well as unsecured and convertible debentures are always available to it.
Easy Transferability
In Companies limited by shares, shares of the company are transferable to any other person by shareholders. Signing, filing and handing over a share transfer form along with share certificate to the buyer of the shares can easily transfer shares.
Owning Property
A company on its own name can sale, purchase, possess, own, enjoy and transfer property rights to anyone. On As long as the the property of the company exist, no claim can be made upon by the shareholder.
Limited Liability
In Company limited liability implies, the owners or shareholders are not held personally responsible for the liabilities of the company. Limited Liability means the status of being legally responsible only to a limited amount for debts of a company i.e only liable for unpaid shares of capital of the company held by them and not more than that.