
As a business owner in India, understanding the compliance and legal requirements is very important. You’re required to maintain transparency in the business environment. It helps in building credibility and confidence for the company.
One of the important aspects of compliance is ROC filing. It safeguards your business reputation. We’ll delve into this blog to understand it better.
What is ROC Filing?
ROC Filing is a procedure for submitting financial statements and Annual Returns of the Company to the Registrar of Companies (ROC). It is regulated by the Ministry of Corporate Affairs. It is required to do annual filing with the ROC for every company that is incorporated under the Companies Act, 2013.
The documents serve as a record of important information about the company, including account disclosure, shareholding patterns, and other crucial details.
Why is ROC Filing Important for Your Business?
Here are Some of the Key Benefits of Filing with the Registrar of Companies.
- Compliance: The ROC ensures all the regulatory compliances of the company. It protects the company from reputational damage.
- Maintain Transparency: It provides important information about the company’s operations and management to the stakeholders.
- Increases Credibility: Timely ROC filings represent a company’s authenticity. It also enhances their reputation in the business dimension.
- Investor Confidence: ROC filing guides investors to make informed decisions about investing in any company. It helps them to measure risks and rewards.
- Penalty avoidance: Non-compliance leads to heavy fines and penalties. But filing protects any legal actions against the company.
Complete Guide for ROC Filing in India
Annual Return Filing: In India, every company has to file its annual return with the ROC. This return includes every detail of the company’s activities throughout the year.
This filing is done through the MGT-7 form on the MCA portal. It has to be done within 60 days from the date of the annual general meeting (AGM) of the company.
Financial Statements Filing: Not just annual returns, but companies are required to file their financial statements as well. This filing requires clarity and transparency of the company’s financial positions.
It may include its assets, liabilities, profits, and losses. The statement has to be audited by the auditor before submission. It is to be filed through Form AOC-4 on the MCA portal within 30 days of the annual general meeting.
Changes in Directors or Shareholding: Companies are required to update the ROC about the changes in their board of directors and shareholdings. The necessary documents needed to be submitted through the form. It includes appointment or resignation of directors (form DIR-11), transfer of shares, or any changes in capital share.
Director’s Report Filing: It is a very crucial document. Its purpose is to provide an overview of the company’s performance and prospects. It is a part of the annual financial filing. Also, make sure that the reports are signed by at least two directors.
Compliance Certificate: It is an important document, issued by a chartered accountant (CA) or company secretary (CS). It is obtained as proof that the company is following all the regulatory compliances set by the MCA.
Procedure for ROC Filing in India
ROC filings vary depending on the kind of filing being made, like Annual Returns Filing, financial statements filing, directors’ report filing, etc. Make sure that all the documents are relevant before filing them to avoid any rejections.
1. Preparation of the Documents: The very first step is to gather the necessary documents for the filings. It includes incorporation documents, financial reports, directors’ reports, and other specific documents as well. Also, obtain a digital signature certificate (DSC) and digital identification number (DIN).
2. Filing with the ROC: Once the documents are prepared and signed, you’ll need to file the documents with the Registrar of Companies. It is done through the Ministry of Corporate Affairs (MCA) portal after selecting relevant forms.
3. Payment of fees: The fees of the filing have to be paid online. The prescribed amount of the fees depends on the specific filing.
4. Verification and Approval: Then the ROC will verify all the submitted documents. They may ask for additional documents for better clarification. Once they are satisfied, the registration of the documents will be approved.
5. Certificate of Compliance: The ROC will issue a certificate of compliance once they are satisfied with the documents.
Compliance Requirements for ROC Filings
The compliance requirements for ROC filing include submitting annual returns, board meeting minutes, annual financial statements, and other additional documents. It is regulated by the Ministry of Corporate Affairs.
Failure to comply with these compliances will lead to legal actions and heavy penalties against the company. Late ROC filing fees start from ₹100- ₹1000 per day. It will increase as per the delays.
Frequently Asked Questions
What is the timeline for ROC filing?
Ans. The due date varies depending on the filing being made. But mainly it is to be done within 30 days from the annual general meeting of the corporation.
What are the documents required for ROC filing?
Ans. Some basic documents like a digital signature certificate, PAN and TAN of the company, address proof, financial statements, annual returns, directors report, etc. are needed.
What is the validity of ROC filing?
Ans. It depends on the specific filing. But it is mainly valid for 1 year and has to be renewed timely.
Conclusion
ROC Filing may seem complicated, but it can be done efficiently with the right knowledge. This filing discloses the information of the management, financial operations, and practices of the company. It becomes helpful for potential investors to measure risks and rewards. It also facilitates the growth and expansion of the company in multiple ways. It is advisable to consult an expert for detailed guidance. Feel free to contact JustStart. We are here to help you throughout every step.