Filing Returns with ROC – How Secretarial Services Help?
Word Count: 542 Words
The Ministry of Corporate Affairs, through the Companies Act 2013, makes it mandatory for companies to file annual returns with the Registrar of Companies. There are certain procedures involved in filing these annual returns. In this write-up, we will be letting you know how hiring secretarial services can help your organization in fulfilling the legal compliances that are part of the Companies Act 2013.
Annual Returns Filing with the ROC The Companies Act through which various legal compliances are set for businesses to follow, makes it mandatory to e-file Balance Sheet, Profit & Loss Account, Annual Return and Compliance Certificate. But before this happens, there are certain processes that need to be followed which includes the holding of Board Meetings and preparation of financial statements and board reports. At every step there are many processes to be followed in order to meet the compliance requirements. For instance; to hold a board meeting that is part of the requirement of ROC filing, a notice should be sent to all board members at least 7 days before the meeting and the acknowledgement for the same should also be taken. Since these details of the documentation are very important for filing annual returns with ROC, by availing company secretarial services, business owners can get the necessary support with regards to meeting all the essential legal requirements.
What is XBRL and why you should know about it when filing annual return with ROC? XBRL is a software framework which is used globally for exchange of business and financial information. In India, XBRL is used for reporting of financial information of a business. Most of the companies should comply with using XBRL for reporting the financial information of their organization. There are many benefits of using XBRL like improved efficiency, cost saving, better analytics etc. According to Ministry of Corporate Affairs or MCA, all public and private companies and their subsidiaries which have been listed in the stock exchange and companies with paid up capital of more than Rs. 5 crore or having a turnover of more than Rs. 100 crore should file their financial statements in XBRL format mandatorily. Since filing of audited financial statement is part of the MCA filing compliance with the ROC, one has to be aware of what XBRL is and how it can help companies.