Annual Compliances for FY 2022-23 W.R.T ROC & RBI

Companies and LLPs in India must comply with the yearly filing requirements stipulated in the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. Filing with the ROC should be done once a year or when certain events occur. The Ministry of Corporate Affairs released a series of notifications in the early months of the new calendar year, 2022, establishing new Compliances and reporting responsibilities in the Corporate Circle. Every Indian company must abide by the provisions of the Companies Act, 2013. In this article we’ll discuss about Annual Compliances for FY 2022-23 W.R.T ROC & RBI.

Before we move upon to Annual Compliances for FY 2022-23 W.R.T ROC & RBI, we should discuss first about the Annual Compliances with respect to Reserve Bank of India (RBI) and Registrars of Companies (ROC).

Annual Compliance with respect to ROC

The Companies Act, 2013 requires every company incorporated under the provisions of the said Act, whether public or private, to file its audited Financial Statements in various e-forms along with the necessary documents with the respective Registrar of Companies on an annual basis, regardless of turnover, capital, transactions done, etc. The Annual Report is completed to report on the actions carried out throughout the Fiscal Year.

The annual filing of a company includes all documentation pertaining to the filing of audited Financial Statements and the Annual return, which includes the information that of the Financial Statements of the Company, Registered Office Address Certifications (if any), Details of the Shares and Debenture issued during the year and transferred, Register of Members as of the date of the end of the Financial Year, The details and information of Debt, and also about the changes in the Debt.

Advantages of Annual Compliance with respect to ROC

The following are the advantages of Annual Compliance with respect to ROC:

• Enhances trustworthiness: The main necessity for every company is legal compliance. If the company complies with the laws, it attracts potential investors to invest in the company because the date of the company’s annual return is displayed on the Master Data on the MCA portal, which also helps in obtaining Government tenders, obtaining loan facilities from banks and financial institutions, and obtaining approvals for similar other purposes.

• Aids in the maintenance of a company’s active status: To keep the company operating, it is required to file returns on a regular basis, which helps to avoid the imposition of significant fines. If the company fails to comply with the regulations and fails to file the returns, it may be deemed defunct or deleted from the ROC records, which affects the status of the relevant directors, disqualifying or barring them from further employment in any business.

More Information on the Company’s Annual Filing

Every company is required by law to comply with the yearly standards outlined in the Companies Act, 2013. Appointing a statutory auditor to audit the company’s yearly accounts is a legal necessity. Companies must compile their accounts and have them approved by their Board of Directors and Auditors.

In addition to MCA yearly filings, companies must file an Income Tax Return in the appropriate form with the Income Tax Department by September 30th of each year. It is mandatory to submit ITR and yearly accounts with ROC regardless of whether the company is active or not.

Legal Window will help you to file your Income Tax Return, and GST Return, GST Registration. Our Experts will guide you through the complex corporate compliances such as XBRL Filing etc,.

Companies are obligated to have an Annual General Meeting once a year, within 6 months after the conclusion of the fiscal year, on September 30th of each year. The AGM of newly established companies must be held within 9 months after the end of the fiscal year, i.e. by December 31st of the relevant year. Any two AGMs should not be separated by more than 15 months.

Annual Compliance with respect to RBI

According to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017, an Annual Return on Foreign Liabilities and Assets (FLA) must be filed by an Indian company that has received FDI or made ODI abroad, or an LLP that has received investment by way of capital contribution in the previous year(s), including the current year, on or before the 15th of July of each year.

Connect to Legal Window to get your RBI Compliance done.

Who can file FLA Return?

Every company that has foreign assets or liabilities in its financial accounts as of March 31, or an LLP that has received investment by way of capital contribution and is still active as of March 31, is obliged to file a FLA return.

If an Indian company does not have any outstanding FDI and/or ODI investments as of the 31st March of the reporting year, the company is not obliged to file the FLA Return. Similarly, if an Indian company has not received any new FDI or ODI in the previous year but has outstanding FDI or ODI, the company is still obligated to file the FLA Return on 15 July of each year.

Features of Annual Compliance with respect to RBI

The updated Foreign Liabilities and Assets Information Reporting (FLAIR) System includes the following features: –

• The RBI would offer reporting organisations with a web-portal access (RBI Portal). Entities must complete a User registration form. Following successful registration, a Login Name and Password will be generated, and a FLA return can be filed.
• The updated form will additionally request details on the first year of ODI/FDI receipt and disinvestment.
• After successfully submitting the form, reporting organisations will receive a system-generated acknowledgment receipt.
• If necessary, the data may be changed, and the information supplied can be viewed/downloaded.
• After getting RBI confirmation on their request email, entities can submit FLA information for previous year/s.
• The current procedure for submitting FLA forms through email will be phased down.

Compliance Calendar for Annual Compliances for FY 2022-23 W.R.T ROC & RBI.

Points to Ponder

The following are the points you should keep in mind:

• Companies that will alter their shareholding during the planning process for BEN 2 must remember to fill out MGT 6 for any changes in beneficial shareholding.
• DIR 6 still remains for any changes to the particulars of a DIN and must be filed regardless if DIR 3 KYC already filed.
• AOC 4 XBRL must be filed by Listed Companies and their Subsidiaries, Companies with a turnover of or greater than Rs 100 Crore, Companies with a paid-up capital of or greater than Rs 5 Crore, and any Company that has previously filed this form mandatorily since its inception. Any of these companies that have an “Associate & / or Subsidiary” as of 31.03.22 must additionally file their “Consolidated Financial Statements” using AOC 4 XBRL.

Endnote

Filing ROC and RBI yearly compliance is a critical element of the Companies Act, 2013, and must be followed by all companies. Non-filing is punishable by fines and has ruined the company’s reputation. As a result, achieving these requirements ahead of the deadline is favourable.