A Company with a distinct identity known as a private limited company must regularly file reports with the MCA in order to maintain its active status. Every corporation must submit an annual return and audited financial statements to the MCA at the end of each fiscal year. No matter the turnover, whether it is zero or in crores, the RoC filing is required. Every registered firm is required to submit annual compliances for private limited, whether any transactions are made or not.
Both forms are submitted in order to report the financial data and operations for the relevant Financial Year. A company’s annual filing deadlines are determined by the date of the annual general meeting. The company’s name could be struck from the RoC registry as a result of persistent failure, and directors could also lose their qualifications. Additionally, it has been noted that MCA has aggressively taken decisive action to address any failures of this nature
Increase Company’s Credibility
Compliance of law is the primary requirement for any business. The date of the company’s annual return filing displayed on the Master Data on MCA portal. Government tenders, loan approval or for similar other purposes, the regularity in compliance is a major criterion to measure the credibility of an organization.
Active Status & Avoid Penalties
Continuous failure in filing the return turns the company status to default and charges it with heavy penalties. The company may also be declared as defunct or removed from the RoC. The concerned directors are also disqualified and debarred from their further appointment.
