Company Annual Return: Meaning, Particulars, Documents, Fees, and Timelines

Every company registered under the Companies Act, 2013 needs to comply with various formalities and compliances. One of those compliances is the company's annual return. Every company, whether small, public, private, or LLP, shall file its company annual report. The annual report is a document containing important information about the company. This information benefits stakeholders and improves corporate governance. BizFoc can be a professional partner to help you with the annual return under the Companies Act, 2013.

What is the Annual Return of a Company?

The annual return of a company is a document containing important information about the company. The annual return includes information about the financial position, information about the company, directors, shareholding pattern, etc. The annual return should be filed by each class of companies. The Companies Act, 2013 provides all the provisions related to private limited annual filings and other companies.

Particulars of Company Annual Return

Every company shall prepare a company annual return containing the following particulars, namely:

• The details of its registered office, principal business activities, particulars of holding, subsidiary, and associates
• Details about the shares, debentures, and other securities and shareholding pattern of the company
• Liabilities of the company
• The details of the members and debenture holders, along with the changes, if any
• The details of promoters, directors, key managerial personnel, and changes, if any
• Details of the meetings of the members or a class thereof, the board, and the board committees
• Remuneration of directors and KMP
• Penalty or punishment imposed on the company, directors, or officer and details of compounding of offences and appeals made
• Matters relating to certification of compliance
• Details of the shares held by or on behalf of foreign institutional investors
• Such other matters as may be prescribed.

Due Date of Filing Company Annual Return

The annual return of a company should be filed within 60 days from the conclusion of the annual general meeting (AGM). Every company is required to hold its annual general meeting (AGM) within 6 months of the end of the financial year, i.e., 30th September. Therefore, the company's annual return should be filed no later than November 29 of every year.

Forms of Company Annual Return

Every company is required to file its annual return on Form MGT-7. The Form MGT-7 is an electronic form available on the online portal of the Ministry of Corporate Affairs (MCA).

Every company, including the one person company, is required to file their annual return in the format prescribed in Form MGT-7.

Authorised Signatories to Company Annual Return

The company annual return shall be signed by any one director authorised by the board of directors for the said purpose. The director may or may not be the managing director or whole-time director. If a company has a full-time company secretary, then the return shall also be signed by the company secretary of the company. In case there is no company secretary in the company, then the company annual return shall be signed by the company secretary in practice.

In the case of a one person company (OPC), the annual return should be signed by only one director. It should be noted that if the OPC has a whole-time company secretary, then the company annual return should be signed by the company secretary as well.

Certification of Company Annual Return

The provisions of the Companies Act, 2013 also impose a provision for certification of the company's annual return. The following classes of companies are required to get their company annual return certified by the company secretary in practice:

• Every listed company
• Unlisted public company having:
  • Paid-up share capital of Rs. 10 crores or more;
  • Turnover of Rs. 50 crore or more

The company secretary in practice should certify the company's annual return in Form MGT-8, stating that all the information is correct in the annual return and the company has complied with all the applicable laws.

Penalty for Non-Compliance

The annual filings are an essential compliance requirement for every company. It should be taken seriously by the company. In case of default in filing the annual return, the penalty of Rs. 100/- per day will be applicable to the company till the default continues.

Documents for Company Annual Return

The documents required to be attached to the company annual return are:

• List of Shareholders
• Copy of duly certified MGT-8
• Approval letter for extension of AGM;
• Any other attachment, as may be applicable

Why Choose Bizfoc?

The company annual return filing can be a hectic process. BizFoc can be a compliance tool to make this process easy and fast. BizFoc can help you with your company annual return filing in the following ways:

• Gathering all the information to be filed
• Filing the return before the deadline
• Certifying the annual return
• Experienced and qualified staff to perform the compliances
• Saving the cost of penalties

Conclusion

In conclusion, the company annual return is important for every company. The filing of an annual return is mandatory for every company. The annual return of a company includes all the important information about the company, including details about the registered office, promoters, members, etc. The annual return should be filed before the due date with the requisite fee. The filing of annual returns is an important compliance matter and it can be done easily with the help of BizFoc. We will take care of everything, including the preparation of the annual return to its certification. Trust us and contact us today!

Frequently Asked Questions (FAQs) on Company Annual Return