What does annual return mean?
- The annual return is a yearly report that contains critical information about the structure, operations, and complete financial status of the company's business and all the commercial activities.
- Not to mention the fact that each operating company registered with the relevant government institution is bound to file an Annual Return at the conclusion of each fiscal year.
- It should include the following, pursuant to the basic corporate legislation.
- Details of the company's shareholders/ stockholders, debt holders, secretary, and all the directors.
- Any Charges levied against the company.
- Company's registered office address, including the location of the registrar of members.
- Copies of the most recent financial statements.
Who Is Required to File an Annual Return?
There are three types of companies that are bound to file an annual return.
- Class I: All companies incorporated in accordance with the Companies Act, 2013/the Companies Act, 1956 are obliged to officially file an Annual Return through Form MGT 7 in 60 days of the conclusion of their Annual General Meeting.
- Additionally, such companies must duly file the financial statements as stipulated in e-Form AOC-4 within 30 days post the completion of their annual general meeting.
- Class II: Any company whose name has been issued in the Strike-off Public Notice No-ROC-DEL/248/STK-5/2018/2912, dated 18/6/2018, for failing to comply with the Annual Compliance and Filing.
- Class III: All companies whose directors have been formally dismissed for non-compliance in filing annual returns pursuant to Section 164(20).