Now that we have learned why Annual Return filing is important for Private Limited Company, we also need to encourage ourselves to complete these filings on or before time. Below is a small list of some points jotted down by Look4Expert specialists for Filing Annual Returns on time.
Safety from Penalty
If a private limited company fails to file timely annual returns, it may be liable to a fine which could range anywhere from Rs 50,000 to Rs. 5 lakhs. Also, even the default officer/director can be punishable with imprisonment which may extend for 6 months or could be fine with the above-mentioned amount or both.
Disqualify the Director
If a private limited company did not file its returns for three years successively, then the director of that company can be disqualified. He/she cannot be eligible for being appointed as director for any other company for five years from the date of their first default.
Off course, the above mentioned are two vital facts for which we must avoid delays in filing the annual returns but there are other great advantages which have already been discussed in our previous blog ‘Importance of Filing Annual Returns for Private Limited Company’. Following the right guidance with the Look4Expert specialists makes a complicated procedure as simple as a piece of cake.
Finally the most prominent – Do you need to file annual returns??
According to the Companies Act, all the companies incorporated in India have to file annual returns. These include all the companies that have their name included in the Register of Companies by the Registrar. Even defunct companies, non-functional companies or companies with little or no activity have to file their annual returns every year. So, whether it is a private limited company or one person company or limited company, it needs to have its annual returns filed every year within 60 days of the Annual Meeting. Deadlines and procedures have been put in place for a reason which is to avoid chaos and haphazard situations inside as well as outside the company. Market reputation is closely knit with these procedures and hence, it is pertinent for each and every company to keep a close eye on accounts.
As William Shakespeare says, “Better three hours too soon than a minute too late”.