The Companies (Management and Administration) Rules, 2014
requires all companies to prepare and file an annual return at the end of close
of each financial year. Non-filing of annual return can attract stringent
penalty and fines, hence its important for Entrepreneurs to be aware of their
responsibilities and file the annual return on time. In this article, we look
at all aspects of filing annual return of company in India.
The following information is provided to the Registrar while
filing the annual return of the Company:
The annual return of most Private Limited Company and One Person Company can be signed by a Director of the Company or a
Company Secretary. In case an annual return is being filed for a company
having paid-up share capital of Rs.10 crore or more and turnover of Rs.50 crore
rupees or more, then the annual return must be certified by a practicing
Company Secretary. The practicing Company Secretary must certify that the
annual return discloses all facts correctly and adequately and that the company
has complied with all the provision of the Companies Act, 2013.
The due date for filing annual return of a company is within
sixty days from the date on which the Annual General Meeting of the
Company is held. Annual General Meeting of a company must be held within 9
months of closing of accounts of a company, in case of first year of operations
of a company. In the second year, Annual General Meeting must be held
within 6 months of closing of accounts of the Company.
Even if a company is not functioning and there are no
transactions, annual return must be filed by the Company. However, a company
may be able to apply for dormant status
of company and obtain the same to
reduce
compliance burden.
The penalty for not filing annual return of a company is
very hefty. If a company fails to file annual return, then it shall be
punishable with a fine which shall not be less than Rs.50,000 but which may
extend to Rs.5 lakhs and every Officer of the Company shall be punishable with
a fine that is not less than Rs.50,000 which may extend to Rs.5 lakhs and
imprisonment.
Further, if a Company has not filed annual return
continuously for three years, then any Director of such company would be
disqualified and would not be eligible for appointment as a Director of that
company or any other company for a period of fiver years from the date on which
the company failed to file annual return.