Company Annual Return – All You Need to Know

What is an Annual Return?

An Annual Return is a mandatory document that every registered company in India must file yearly.  It provides a comprehensive overview of the company’s activities, including details on shareholding, directorship, capital structure, and other essential information. Filing an Annual Return helps ensure transparency and provides stakeholders with crucial insights into the company. 

• All Private & Public Limited Companies use Form MGT-7,
• One Person Companies use Form MGT-7A, 
• LLPs use LLP Form NO 11 to file the annual return

Why Do You Need to File an Annual Return?

Filing an Annual Return is essential for regulatory compliance and helps maintain the company’s legal status. It serves as an official record of the company’s operations and structure for the fiscal year. Without it, a company can face penalties or even deregistration, making it important to keep this filing up-to-date.

When Should You File an Annual Return?

The Annual Return is typically filed within 30 days of the Annual General Meeting (AGM), which most companies hold in September, based on a March fiscal year-end. This means the filing deadline for the Annual Return generally falls by the end of November each year, depending on the company’s AGM date​.

How to File an Annual Return

To file an annual return with the Ministry of Corporate Affairs (MCA) in India, follow these steps:

• Gather Required Information

  Collect key details, such as company address, business activities, director details, shareholding structure, financial statements, and compliance certifications.

• Log In to the MCA Portal

   Go to the MCA21 portal, log in, or create an account if needed.

• Download and Fill the Right Form

   Use Form MGT-7 for most companies, or Form MGT-7A for small or One Person Companies (OPCs) or LLP Form No 11 for LLPs. Complete sections on registration details, business activities, directors, and shareholding.

• Attach Required Documents

   Include the list of shareholders, signed financials, and a company secretary’s certification, if necessary. Use digital signatures for authorized personnel.

• Pay Filing Fee

   Once forms and documents are ready, submit them and pay the required fee (the amount varies by company type).

• Submit and Confirm

   Submit the return, noting the Service Request Number (SRN) to track filing status.

• Download and Keep a Copy

   Store a digital or printed copy of the filed return for future reference.

What Happens if You Fail to File the Annual Return?

Failing to file an annual return can lead to serious consequences for a company. Here’s what you can expect if the filing deadline is missed:

• Financial Penalties

  The Ministry of Corporate Affairs (MCA) imposes penalties for each day the filing is delayed. Typically, fines accumulate daily, which can become substantial over time. For companies in India, penalties may range from Rs. 100 per day or more, depending on company size and filing status.

• Director Disqualification

   Continuous failure to file an annual return can result in directors being disqualified under Section 164 of the Companies Act, 2013. Disqualified directors are prohibited from serving on the board of any company for up to five years.

• Company Status as ‘Defaulting’

   When a company fails to file an annual return, the MCA may mark it as “defaulting.” Defaulting companies lose certain privileges, face legal restrictions, and may be barred from taking specific corporate actions, such as issuing new shares or participating in government tenders.

• Possible Strike-Off by MCA

   In extreme cases, prolonged failure to comply may lead the MCA to strike the company’s name off the register, effectively dissolving it. This can have lasting implications, including potential legal and financial difficulties for shareholders and directors.

• Difficulty in Securing Loans or Investors

   Non-compliance impacts a company’s credibility, making it harder to obtain funding or attract investors. Many institutions check MCA compliance records, so a history of missed filings can hurt financing opportunities.

Overall, filing your annual return on time helps avoid these penalties and keeps your company in good legal standing with the MCA.

How to Check if a Company Has Filed Its Annual Return via InstaFinancials?

To check a company’s filing status on InstaFinancials:

• Visit InstaFinancials.
• Search for the Company by Company Name or CIN or LLP Name or LLPIN in the search bar.
• You’ll be directed to the company’s page, which includes registration details and more, all available for FREE.
• In the “Company Highlights” section, locate the Balance Sheet Date.
• If the Balance Sheet Date is 31-03-2024, it indicates that the company has recently filed its Annual Return.

This quick check makes InstaFinancials an efficient tool for tracking the filing status of any company.

How Can You Download the Latest Annual Return Report for a Company on InstaFinancials?

If you want to access a company’s latest Annual Return Report on InstaFinancials. Here’s a step-by-step guide to help you order and download the report:

Step 1: Ordering the Report

• Login to InstaFinancials: Go to the InstaFinancials website and log in to your account. If you don’t have an account yet, you can easily create one by signing up for free.
• Search for the Company: Use the company name or CIN (Company Identification Number) in the search bar to find the company.
• Click on the ‘Order Now’ Button: Once you find the company, click the ‘Order Now’ button to proceed with purchasing the report.
• Select Your Preferred Option: For concise and direct public RoC documents, choose InstaDocs. For a detailed, insightful, and well-presented financial report, opt for InstaDetailed. If you need a copy of both InstaDocs & InstaDetailed Report you can choose InstaCombo. If you need the most comprehensive details along with redflag analysis, risk scoring, legal data, and more data along InstaDocs, you may choose Brisk Report
• Add to Cart: After selecting the report, click on the ‘Add to Cart’ Button.
• Confirm Your Order: Review your selection and click on ‘Confirm Order’ to finalize the process.
• Make Payment: Use the secure payment gateway to pay for the report.

Step 2: Downloading the Report

Once your order is confirmed and processed, you can download the report.

• Login to InstaFinancials: Return to the InstaFinancials website and log into your account again.
• Go to ‘My Reports’: Navigate to the ‘My Reports’ section of your account to view the reports you’ve ordered.
• Download the Report: Click on the “Download” button against the company to get your Annual Return Report.

By following these simple steps, you can easily order and download any company’s Annual Return Report from InstaFinancials.

Cost of Downloading the Annual Return Report in InstaFinancials

InstaFinancials offers the following report options:

• InstaDocs Report: Rs. 299
• InstaDetailed Report: Rs. 599
• InstaCombo Report: Rs 699
• Brisk Report: Rs 1,500

Subscribe to attractive plans and enjoy an almost 50% discount on the MRP on purchases of just 5 or 10 reports or more.

On the MCA platform, you receive reports individually, but InstaFinancials provides an all-in-one, comprehensive report, so you won’t need to download each one separately. Plus, InstaFinancials reports are designed for easy understanding, unlike the complex format on MCA.

Contact our sales team for any bulk requirement or product demo or customization.

FAQs

• What are the key details included in the Annual Return?

The annual Return form includes the Company Name/LLP Name, CIN/LLPIN, financial year for which the filing is done or shareholder details or partner details, and more.

• What is the late fee for filing the Annual Return after the due date?

The late fee for not filing the Annual Return on time is typically Rs. 100 per day. This can quickly add up, so it’s important to file before the deadline to avoid additional charges.

• Can I file the Annual Return before the AGM date?

No, the Annual Return must be filed within 30 days after the Annual General Meeting (AGM). If you miss this deadline, you will incur penalties.

• How long does it take to process the Annual Return after filing?

After submission, it usually takes about 7-10 business days for the MCA to process the Annual Return and approve it. However, if there are any issues or missing details, it could take longer.

• How to check the availability of the Latest Annual Returns of Any Company?

Visit InstaFinancials website –> Search By Company Name or CIN or LLP Name or LLPIN –> Check Last AGM / Balance Sheet Date of the Company for Free.

• Where can I download the latest annual return of any company?

You can download the latest annual return of any OPC, LLP, Private or Public Company from either the MCA website or InstaFinancials