If you are an entrepreneur and you have a business in India then you must file annual returns and financial statements to MCA. By providing the annual financial statements to MCA, your company will show transparency to the stakeholders. Also, it will ensure that all the compliance connects with legal requirements and maintains your company's reputation.
However, filing annual returns and financial statements is important for your company's stakeholders to understand your financial health and performance. Other than stakeholders, the creditors, and customers also need to know your company’s past years' performances, so filing financial statements every year will help your business gain authority in the market. Below in the article, we shared reasons why you should file annual statements to MCA and what is the procedure.
Financial statements are the most sensitive and important documents which contain the annual financial data systematically so that these can be comprehended by the reader or users. Financial statements show a picture of the company's financial status. This is like a health report of your business.
Filing these statements is an essential requirement for companies to operate in India. The Ministry of Corporate Affairs (MCA) has established regulations that mandate companies to submit their financial statements annually. The financial statements include three parts:
The definition of financial statements is clearly defined under the Companies Act, 2013. Reporting of financial statements is a mandatory requirement under the Companies Act, 2013. Under the Act, there are only two forms, namely, AOC-4 and MGT-7 which are prescribed for annual filing in Delhi. Both forms are filed online to ROC.
Companies need to file their financial statements with the MCA and below are the several reasons why this is necessary.
To submit financial statements to the MCA, follow these steps:
Financial statement filing with the MCA in India is a crucial aspect of corporate governance and regulatory compliance. It ensures transparency, accountability, and trust in business operations. By adhering to the prescribed timelines and filing accurate financial statements, companies can reap the benefits of enhanced credibility, access to capital, and stakeholder confidence.
Businesses must recognise the significance of financial statement filing and dedicate the necessary resources to fulfil this vital obligation. To fulfil the vital obligation of financial statement filing, it is important to recognize its significance and allocate the necessary resources. At Registrationwala, we assist the company in filing financial statements.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.