{"id":998,"date":"2019-11-07T13:12:19","date_gmt":"2019-11-07T13:12:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=998"},"modified":"2022-11-16T15:09:03","modified_gmt":"2022-11-16T09:39:03","slug":"procedure-of-filing-annual-return","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/","title":{"rendered":"Procedure of Filing Annual Return: A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\"> All companies need to&nbsp;file annual return&nbsp;at the end of each financial year with the Ministry of Corporate Affairs. &nbsp;In this article we are going to gain knowledge about the steps involved in the filing of annual return, what forms you need to fill and what are the other requisites regarding filing the same. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#What_is_Annual_Return\" >What is Annual Return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Who_Needs_to_File_Annual_Return\" >Who Needs to File Annual Return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Steps_Involved_in_the_Filing_of_Annual_Return\" >Steps Involved in the Filing of Annual Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Maintenance_of_Book_of_Accounts\" >Maintenance of Book of Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Preparing_a_Companys_Financial_Statements\" >Preparing a Company\u2019s Financial Statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Conducting_Audit_of_Financial_Statements\" >Conducting Audit of Financial Statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Commencing_Annual_General_Meeting\" >Commencing Annual General Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Annual_Return_Filing\" >Annual Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Forms_used_to_file_Annual_Return\" >Forms used to file Annual Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Documents_and_Information_that_needs_to_be_submitted_in_Form_MGT_7\" >Documents and Information that needs to be submitted in\nForm MGT 7<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#General_Points_while_Doing_the_Annual_ROC_Filing\" >General\nPoints while Doing the Annual ROC Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Annual_Return\"><\/span>What is Annual Return?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The annual\nreturn is the yearly statement containing essential information about an\nentity\u2019s composition, activities and financial position. Not to mention, every\nactive company registered with an appropriate authority need to file Annual\nReturn at the end of every fiscal year. As per the provisions of general\ncorporate legislation, it ought to consist of the following;<\/p>\n\n\n\n<ol><li>A particular of shareholders or\nstockholders, debenture holders, firm\u2019s secretary and the directors.<\/li><li>List of charges against the entity\n(if any)<\/li><li>Address of the registered office with\nlocation of the register of members<\/li><li>Copy of latest financial statements<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Needs_to_File_Annual_Return\"><\/span>Who Needs to File Annual Return?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are three categories of companies that need to comply with the provision of filing an&nbsp;annual return;<\/p>\n\n\n\n<ol><li><strong>Class I<\/strong>: Every company registered under the\nCompanies Act, 2013 or the Companies Act, 1956 need to file Annual Return in\nForm MGT 7 within 60 days from the wrapping up of its Annual General Meeting\n{AGM}. Also, such companies have to file their Financial Statements in e-Form\nAOC-4 within 30 days from the conclusion of their AGM.<\/li><li><strong>Class II<\/strong>: Every company whose name has been\npublished for not complying with the Annual Compliance and Filing, in the\nStrike-off Public Notice No-ROC-DEL\/248\/STK-5\/2018\/2912, Dated 18\/6\/2018. As a\nmatter of fact, 31250 companies received this notice.<\/li><li><strong>Class III<\/strong>: All companies whose directors have\nbeen disqualified under Section 164(20) for not filing an annual return.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_Involved_in_the_Filing_of_Annual_Return\"><\/span>Steps Involved in the Filing of Annual Return<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The following steps are involved in the filing of annual return; <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-17.png\" alt=\"Steps in the Filing of Annual Return\" class=\"wp-image-27953\" width=\"559\" height=\"326\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-17.png 583w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/image-17-300x175.png 300w\" sizes=\"(max-width: 559px) 100vw, 559px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Maintenance_of_Book_of_Accounts\"><\/span>Maintenance of Book of Accounts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is obligatory for every company to maintain a Book of Accounts. Not only it serves as compliance with the law but also, it helps in keeping track of the inflow\/ outflow of finances of the company. Moreover, as per the <strong>Companies Act, 2013<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\"><strong>[1]<\/strong><\/a><\/sup>, it is mandatory for all companies to maintain a Book of Accounts in a specified format.<\/p>\n\n\n\n<p>Furthermore,\nthe following should be included in it, namely;<\/p>\n\n\n\n<ol><li>Detail of monies received or spent by\nthe company<\/li><li>Also, the assets and liabilities of\nthe company<\/li><li>Furthermore, the details of sales and\npurchases of the company and<\/li><li>Lastly, other financial or business\ntransactions<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preparing_a_Companys_Financial_Statements\"><\/span>Preparing a Company\u2019s Financial Statements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nfinancial statement of a company is prepared based on the Book of Accounts.\nFurthermore, the financial statement is a statement that contains the\ninformation about the financial position, performance and changes in the\nfinancial position of an assessee of the company. Additionally, it comprises of\nthe balance sheet, profit and loss account and other statements\/ explanatory\nnotes of the company. &nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conducting_Audit_of_Financial_Statements\"><\/span>Conducting Audit of Financial Statements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every\nCompany needs to appoint its first Auditor within one month of the registration\nof the company. Furthermore, any individual who is a qualified Chartered\nAccountant in practice, or an entity of Chartered Accountants may be selected\nthe Auditor of a Company.<\/p>\n\n\n\n<p>After his appointment, the Auditor of the Company needs to audit the financial statements of the Company and submit his\/ her report on the accounts of the Company to the members. The Auditor also has to state in his report whether the accounts of the Company give an accurate and fair picture of the state of affairs of the Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Commencing_Annual_General_Meeting\"><\/span>Commencing Annual General Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An Annual\nGeneral Meeting is the congregation of the shareholders of a Company conducted\nevery year. Furthermore, the Companies Act, 2013 mandates that all companies\nexcept One Person Company need to hold&nbsp;<strong>Annual General Meeting<\/strong>&nbsp;each\nyear. Moreover, the date of any Annual General Meeting has to be kept within 15\nmonths from the date of commencement of the preceding&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>Annual General Meeting<\/strong><\/a>. On the other hand, for a newly\nincorporated company, the first Annual General Meeting<a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>&nbsp;<\/strong><\/a>must be held within 18 months from\nthe date of incorporation&nbsp;of the Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_Return_Filing\"><\/span>Annual Return Filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the commencement\nof the Annual General Meeting, you have to file it to the Registrar of\nCompanies (ROC). Also, it is necessary to submit the audited financial\nstatements of the company in the prescribed format to the Ministry of Corporate\nAffairs (MCA). Furthermore, the company should file the financial statements\nwithin 30 days, and annual return within 60 days after the winding up of the\nAnnual General Meeting (AGM). &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Forms_used_to_file_Annual_Return\"><\/span>Forms used to file Annual Return<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Company\u2019s\nset-up under the Companies Act, 2013 need to fill the following forms with the\nRegistrar of Companies as a part of annual return filing;<\/p>\n\n\n\n<ol><li><strong>AOC 4&nbsp;Form:&nbsp;<\/strong>Form used for the purpose of filing\nthe financial statements and required documents<\/li><li><strong>Form AOC 4- CSF :&nbsp;<\/strong>Form for submitting containing\nsalient features of consolidated financial statement of a group<\/li><li><strong>AOC 4- XBRL<\/strong>&nbsp;<strong>Form&nbsp;:&nbsp;<\/strong>Form\nused in order to file the XBRL documents in respect of financial statement and\nother document<\/li><li><strong>MGT 7&nbsp;Form&nbsp;:&nbsp;<\/strong>Form used for the purpose of filing\nAnnual Return by companies having share capital<\/li><\/ol>\n\n\n\n<p><strong>Signing:&nbsp;<\/strong>The Director and Company Secretary,\nof the company should sign the Annual Return Form. Also, a practicing Company\nSecretary can sign it in case there is no CS in the company. &nbsp;However, in\nOne Person Company, it has to be signed by the director of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_and_Information_that_needs_to_be_submitted_in_Form_MGT_7\"><\/span>Documents and Information that needs to be submitted in\nForm MGT 7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing documents and information are required to be submitted along with the\nForm MGT 7;<\/p>\n\n\n\n<ul><li>Balance  Sheet of the Company, Profit &amp; Loss Account<\/li><li>Compliance Certificate, Registered Office Address<\/li><li>Also, a list of shareholders and shareholding structure of the company<\/li><li>Furthermore, the details of transfers &amp;\/or Transmission of securities<\/li><li>Additionally, the details of Shares and Debentures<\/li><li>Lastly, information related to any changes in the Directorship<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"General_Points_while_Doing_the_Annual_ROC_Filing\"><\/span>General\nPoints while Doing the Annual ROC Filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>&nbsp;Before 7 days from the date of Board Meeting the notice shall be sent to all the directors and acknowledgement of the notice must be taken.<\/li><li>The financial statement together with the consolidated financial statement according to Section 134 of the Companies Act, 2013, on behalf of the Board shall be signed by the company\u2019s chairperson where he is sanctioned by the Board or any two directors from which one shall be the Chief Executive Officer and the managing director. In case of a director in the company, the company secretary of the company and the Chief Financial Officer, wherever they are appointed, or only by one director in the case of a One Person Company.<\/li><li>According to Section 101 of the Companies Act, 2013, the general meeting notice for 21 days shall be given to all the members, legal representatives of person who are dead, every director of the company and auditor by both electronic and physical mode. The notice should include the location map of the place of the general      meeting in accordance with the Secretarial Standards and should be updated on the website if any.<\/li><li>The company shall make its own books of accounts and the same shall be in the registered office. If the company decides to locate at some different place, then the company shall have to pass a board resolution by filing AOC-5.<\/li><li>During the process of uploading the forms, proper caution should be taken that the form is correct and is the updated version as given on the MCA portal.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Annual Return is a mandatory compliance for all companies registered under the Companies Act, 2013 or as specified by law under specific circumstances. Also, you can file NIL annual return; if your company does not have any transactions in the preceding year. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/appointment-and-removal-of-auditor-in-a-privately-held-organization\/\">\nAppointment and Removal of Auditor in a Privately-held Organization\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All companies need to&nbsp;file annual return&nbsp;at the end of each financial year with the Ministry of Corporate Affairs. &nbsp;In this article we are going to gain knowledge about the steps involved in the filing of annual return, what forms you need to fill and what are the other requisites regarding filing the same. What is [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[171,170],"acf":{"service_id":"321"},"authorName":"Tanya Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190703-WA0001__01-150x150.jpg","authorDescription":"Tanya is working as writer &amp; editor from past 2 years with experience in covering startup and technology related topics.","postViews":16112,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/998"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=998"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/998\/revisions"}],"predecessor-version":[{"id":50762,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/998\/revisions\/50762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1000"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}