Filing of Annual Returns for Private Limited Companies
All businesses are required to file their annual returns at the end of each fiscal year. Small and large businesses must adhere to the same guidelines. While many smaller businesses skip this step entirely, doing so is not recommended because it can result in heavy fines from the Registrar and even blacklisting of the company's directors.
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So, keep in mind the following compliance steps that every private limited company must take:
The Upkeep of Accounts - The Submission of Annual Returns
The Companies Act of 2013 requires businesses to keep their books of accounts in a specific format. Furthermore, in order to have adequate oversight and control over the business, companies must keep accurate books of accounts.
Filing tax refund, making business projections, filing goods and services (GST) returns, and even filing TDS returns are all required while doing so.
All business accounts must include the following information:
- A detailed accounting of all funds received and spent by the company
- a list of all sales and purchases
- A list of current assets and liabilities; any other financial transactions, such as salary payments
Appointing an Auditor - Filing Annual Returns
Certain requirements must be met by all new businesses. The appointment of a first auditor is a must for successful adherence to these compliances. Every company must appoint its first auditor within one month of its incorporation.
A private limited company's auditor can be anyone who is a qualified chartered accountant (CA) or a firm of CAs. The appointment of an auditor expires at the conclusion of the company's first annual general meeting (AGM). The auditor may be reappointed by the company.
The following individuals/entities are not permitted to be appointed as auditors of a private limited company:
a) A corporate body
b) A company officer or employee
c) A person who is a partner or director of the company
d) A person who is indebted to the company
e) A person who is employed full-time elsewhere
When auditors finish their work, they write an audit report in which they explain what they did and offer their opinion based on their findings. The auditor's role is to ensure that the information presented in the financial report accurately reflects the organization's financial position in a given year. Auditors must follow auditing standards mandated by the government of India when reviewing financial reports.
Organizing Annual General Meetings
The Companies Act of 2013 mandates that, with the exception of a one-person company, all companies hold an annual general meeting (AGM) each year.
At the AGM, the board of directors presents an annual report to shareholders that includes information about the company's performance and competitive strategy.
Furthermore, voting shareholders vote on current issues such as board of director appointments, executive compensation, dividend payments, and auditor selection.
Annual Return Filing
Following the completion of the AGM and the adoption of the audited financial statements by the company, the returns must be filed with the Registrar. . These returns must be submitted within 60 days of the date of the AGM.
The Bottom Line
It is required to keep the books of accounts in a systematic manner. Accountancy is required to present the various types of transactions that occurred during a fiscal year. Your company should keep a detailed record of the money it spends and receives. Contact Cheap accountant in London today to reap the benefits of hassle-free and seamless return filing. Explore a wide range of compliance services and packages by contacting today!