Annual Return Filing for Company

All companies (

private limited company, one person company, limited company, section 8 company, etc) are required to file an annual return with the MCA every year. In addition to filing MCA annual return, companies would also be required to file income tax return. In this article, we look at MCA annual return filing for a company in detail. Note: Directors of companies that have failed to file the annual return for three years will be disqualified for 5 years. Know more about Director Disqualification.

MCA Annual Return

All companies registered in India must prepare and file with the Registrar of Companies, an annual return in FORM MGT 7, within 60 days from the date of annual general meeting. The annual return of a company can be filed with the digital signature of the Director of the Company and the digital signature of the Chartered Accountant auditing the company. In case of annual return filing by a listed company or a company having paid-up share capital of ten crore rupees or more or turnover of fifty crore rupees or more, the annual return must be certified by a Company Secretary in practice in Form No. MGT 8.

Details Provided in Annual Return

A MCA annual return contains the information as pertaining to the previous financial year:

Details of registered office, principal business activities, particulars of its holding, subsidiary and associate companies.
Details of shares, debentures and other securities and shareholding pattern.
Details of indebtedness.
Details of its members and debenture-holders along with changes therein since the close of the previous financial year.
Details of promoters, directors, key managerial personnel along with changes therein since the close of the previous financial year.
Details of meetings of members or a class thereof, Board and its various committees along with attendance details.
In case of limited company, the remuneration of directors and key managerial personnel must be provided;
Details of penalty or punishment imposed on the company, its directors or officers and details of compounding of offences and appeals made against such penalty or punishment.
Details of matters relating to certification of compliances, disclosures as may be prescribed.
Details of shares held by or on behalf of the Foreign Institutional Investors indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by the.
Details of other matters as may be prescribed, and signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice.

Penalty for Not Filing MCA Annual Return

The penalty for a company not filing MCA annual return is Rs.5 lakhs. In addition, every officer of the company who is in default will be punishable with imprisonment for a term of upto 6 months or with a fine or both. In addition, companies that do not file their income tax return or MCA annual return continuously can be marked as a

strike off by the Registrar of Companies. Before the company is striked off, the bank accounts of the company could also be frozen. Finally, once a company is marked as strike off by the Registrar of Companies, the directors in the company would be disqualified from acting as Director of a company for a period of 5 years.

To file annual return for your company, visit IndiaFilings.com or email sales@indiafilings.com for assistance.

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Frequently Asked Questions

Common questions about MCA Annual Return Filing for Companies in India.

An MCA annual return is a mandatory document that all companies registered in India must file with the Registrar of Companies every year. It contains essential details about the company, such as its registered office, business activities, shareholding pattern, directors, and key managerial personnel.

Filing the MCA annual return is crucial because failure to do so for three consecutive years can lead to the disqualification of the company's directors for a period of 5 years. Additionally, companies that do not file their annual returns or income tax returns continuously may be marked for strike-off by the Registrar of Companies.

Companies must file their MCA annual return in FORM MGT 7 within 60 days from the date of their annual general meeting.

The MCA annual return can be certified with the digital signature of the company's director and the chartered accountant auditing the company. In the case of listed companies or companies with a paid-up share capital of ₹10 crore or more or a turnover of ₹50 crore or more, the annual return must be certified by a Company Secretary in practice in Form No. MGT 8.

The MCA annual return contains details such as the company's registered office, principal business activities, shareholding pattern, indebtedness, changes in members and debenture-holders, changes in promoters, directors, and key managerial personnel, details of meetings and attendance, remuneration of directors and key managerial personnel (for limited companies), penalties or punishments imposed, and shareholding by Foreign Institutional Investors.

The penalty for a company not filing the MCA annual return is ₹5 lakhs. Additionally, every officer of the company in default may be punishable with imprisonment for up to 6 months or a fine, or both.

Yes, if a company does not file its income tax return or MCA annual return continuously, the Registrar of Companies can mark the company for strike-off, and its bank accounts may be frozen before the strike-off process is initiated.

Companies can file their MCA annual return by visiting platforms like IndiaFilings.com or by contacting their sales team at sales@indiafilings.com for assistance.

The MCA annual return requires companies to provide details of shares held by or on behalf of Foreign Institutional Investors, including their names, addresses, countries of incorporation, registration, and percentage of shareholding. This information helps in monitoring foreign investment in the company.

Yes, for listed companies or companies with a paid-up share capital of ₹10 crore or more or a turnover of ₹50 crore or more, the MCA annual return must be certified by a Company Secretary in practice in Form No. MGT 8, in addition to the certification by the director and chartered accountant.