For a company to maintain compliance, it is required to conduct Annual General Meetings at the end of each financial year. The Annual returns should be filed with the Ministry of Corporate Affairs. In the case of a new company, the Annual General Meetings should be conducted within a timeframe of 18 months from the date of initiation or 9 months from the date of closing the financial year, whichever is feasible. The following annual General Meeting must be held within 6 months from the end of that financial year. Typically, a company’s annual return would be on the 30th of September.
Annual returns of a company generally disclose information like Registered Office Address, Shares and Debentures details, Debt details, Register of Member and other information about the Management of the company. The Annual returns also disclose information on the shareholding structure of the company, modifications in Directorship and details of transfers of securities. It also consists of information and certification that include the Balance Sheet of the organization, Certificate of Compliance and an account of Profit & Loss.
A Company is considered as a legal entity and an authorized person established under the act. Thus, a company has wide legal capabilities. It can own property and incur debts, but its members (Shareholders/Directors) will have no liability like debts to the creditors of a company
In a company, the shares are transferable by a shareholder to any person. The process includes signing and filing of a share form and offering it to the buyer, the share along with the share certificate.
As long as the company is an ongoing concern, the company can acquire, sell and enjoy the property in its own name. No shareholder can claim the company’s property as the company is a legal entity.
The company shall enjoy ‘perpetual succession’ which means, the existence will not be interrupted until it is legally dissolved. A company, as a separate legal person shall remain unaltered by the departure or demise of any member and it remains to be in existence regardless of any modifications in the membership.
In India, a company holds bargaining powers and enjoys better avenues for obtaining appropriate funds. A company can issue debentures (secured and unsecured) and accept deposits from the public, etc. Banks and Financial institutions offer substantial financial assistance to companies rather than Partnership or Proprietary concerns.
Our Professionals at Complisure will assist you to prepare and file Annual returns of your company based on the financials and performance during the preceding financial year.
On preparing the Annual Return in the prescribed format, the Client’s Finance Team will verify the thus prepared annual return and affix a digital signature.
Once prepared and verified, the annual return can be filed with the Ministry of Corporate Affairs along with the required documents.