FAQs on Annual Filing for Companies-and-LLP
Que. 1 What is annual filing for companies and LLP in India?
Ans. Annual filing for companies and LLP in India involves submitting financial statements and annual returns to the Registrar of Companies (RoC) in compliance with the Companies Act, 2013 for companies, and the Limited Liability Partnership (LLP) Act, 2008 for LLPs. These filings are mandatory to maintain legal compliance and ensure transparency.
Que. 2 Why is annual filing important for companies and LLP?
Ans. Annual filing is crucial as it ensures the company or LLP complies with statutory obligations, maintains good standing with regulatory authorities, and provides transparency to stakeholders. Failure to file can result in penalties and legal consequences.
Que. 3 What is the deadline for annual filing of companies in India?
Ans. For companies, the deadline for filing financial statements (Form AOC-4) is within 30 days from the conclusion of the Annual General Meeting (AGM), while the annual return (Form MGT-7) must be filed within 60 days of the AGM.
Que. 4 What are the consequences of non-compliance with annual filing requirements?
Ans. Non-compliance with annual filing requirements may lead to penalties, disqualification of directors, and even the striking off of the company's or LLP's name from the register by the Registrar of Companies. This can severely affect operations and legal status.
Que. 5 What is the annual return for a company?
Ans. The annual return (Form MGT-7) is a detailed document that provides information on the company's directors, shareholders, financial details, and any changes made during the financial year. It must be filed with the RoC as per the Companies Act, 2013.
Que. 6 What are the mandatory forms for annual filing of an LLP?
Ans. The mandatory forms for annual filing of an LLP include Form 11 (Annual Return) which is due by May 30 each year, and Form 8 (Statement of Accounts & Solvency) due by October 30 each year.
Que. 7 Can a company or LLP file their annual return after the due date?
Ans. Yes, a company or LLP can file their annual return after the due date, but it will be subject to late filing fees and penalties. Persistent failure to file may result in further legal actions such as disqualification of directors or partners.
Que. 8 What are the penalties for late filing of annual returns for companies?
Ans. The penalty for late filing of annual returns for companies is Rs. 100 per day per form until the compliance is met. There is no upper limit to the penalty, which makes timely filing important.
Que. 9 What is Form 8 for LLP annual filing?
Ans. Form 8 is a statement of accounts and solvency that every LLP in India must file annually. It certifies that the LLP is solvent and provides a summary of the financial status of the LLP.
Que. 10 Do small companies have any exemptions in annual filing?
Ans. Yes, small companies enjoy certain exemptions and reduced compliance requirements, such as simplified forms and fewer disclosures. However, they are still required to submit their financial statements and annual returns.
Que. 11 What is Form AOC-4 for annual filing of companies?
Ans. Form AOC-4 is used to file the financial statements of a company with the Registrar of Companies. It includes the balance sheet, profit & loss account, and the director's report, as required under the Companies Act, 2013.
Que. 12 Can LLPs face legal action for non-filing of annual returns?
Ans. Yes, LLPs that fail to file their annual returns and other mandatory forms can face legal action, including penalties, disqualification of partners, and even the striking off of the LLP's name from the register.
Que. 13 What documents are required for annual filing of companies?
Ans. Documents required for annual filing include audited financial statements, the director’s report, the auditor’s report, and any changes in shareholding or directorships during the year.
Que. 14 How does the Trademark Act, 1999 relate to annual filings?
Ans. While the Trademark Act, 1999 primarily deals with trademark registration and protection, compliance with company filings helps to ensure that a company's trademark remains legally valid and that the company is in good standing to maintain its trademark rights.
Que. 15 What is Form MGT-7 for companies?
Ans. Form MGT-7 is the annual return form that companies must file with the Registrar of Companies. It provides a snapshot of the company's structure, including shareholding patterns, management, and other relevant information.
Que. 16 Are companies required to hold an AGM before filing annual returns?
Ans. Yes, companies are required to hold an Annual General Meeting (AGM) where the financial statements are approved by shareholders. The AGM must be held before the annual returns are filed.
Que. 17 Can a company be penalized for incorrect filing of annual returns?
Ans. Yes, companies can be penalized for incorrect or incomplete filing of annual returns. It is important to ensure accuracy and compliance with the provisions of the Companies Act, 2013.
Que. 18 What is the fee for filing annual returns of companies?
Ans. The fee for filing annual returns of companies varies depending on the company’s authorized share capital. The fee increases with the amount of authorized share capital.
Que. 19 Can annual filings be done online?
Ans. Yes, both companies and LLPs can file their annual returns and other mandatory forms online through the Ministry of Corporate Affairs (MCA) portal. The online process simplifies compliance and allows for easy submission of documents.
Que. 20 What are the benefits of timely annual filing for companies?
Ans. Timely annual filing ensures compliance with statutory obligations, helps avoid penalties, and enhances the company’s credibility. It also makes it easier to maintain the company’s trademark rights under the Trademark Act, 1999.
Que. 21 What happens if an LLP fails to file Form 11?
Ans. If an LLP fails to file Form 11 (Annual Return), it may face penalties starting at Rs. 100 per day until the filing is completed. Continued non-compliance may lead to additional legal actions against the LLP.
Que. 22 Is it mandatory for LLPs to have their accounts audited?
Ans. It is mandatory for LLPs to have their accounts audited if their annual turnover exceeds Rs. 40 lakhs or if their contribution exceeds Rs. 25 lakhs. Otherwise, audit requirements are not applicable.
Que. 23 Can a dormant company file annual returns?
Ans. Yes, dormant companies are required to file annual returns and comply with other statutory obligations under the Companies Act, 2013, despite not conducting any business operations.
Que. 24 How can companies ensure compliance with the Trademark Act, 1999 during annual filings?
Ans. Companies can ensure compliance with the Trademark Act, 1999 by maintaining accurate records, completing timely annual filings, and updating any changes in ownership, structure, or use of their trademarks during their annual return submissions.
