What is the primary requirement of owning a company or a firm? Think about it, even before paying your taxes the government must have a record of your company in its database, right? How does the government get that?
It is done by a simple process of filing with ROC. Section 3 of the Companies Act, 2013 dictates the provisions to register a company. The office responsible to register companies is called the Registrar of Companies or ROC.
This article focuses on explaining what is ROC, the ROC centers in India, the time period for filing with ROC, etc.
What Do You Mean by ROC?
ROC or Registrar of Companies is a government organization that is appointed to register companies and LLPs present in different states and union territories.
Each state and union territory has ROC offices which are responsible to register any company or firm formed in their jurisdictional area.
Each of the regional offices is headed by a Regional Director who controls the proceedings in these offices.
Let’s understand why we need ROC.
What is the Purpose of ROC Filing?
ROC filing is an important step as it helps the government to keep records of the companies.
The registrar of Companies is trusted with the information of financial statements, and annual returns of the company every year.
ROC also illustrates the prerequisites for filing a ROC form by a company.
ROC regulations state that a company must have the following to register the company.
Name of the company, directors for the company, fees to register the company, minimum subscriber and minimum paid-up capital at the time of registration.
More information is shared in the table below.
|Reserving the company’s name||Form – SPICe||Fees- INR 1000 (For reservation of name)|
|The Minimum paid up capital at the time of registration|
How Many ROCs Are There in India?
There are around 30 ROCs in India spread across all the states and Union Territories.
Below is the link to the map displayed on the website of the Ministry of Corporate affairs. To get the contact details you just have to click on the thumbnail of your state.
After that, the contact information containing the details like- the name of the director of the ROC, the address of the office, and the contact number of the office will be displayed in a small dialogue box.
Is ROC Filing Mandatory Every Year?
Yes, ROC filing is mandatory every year. The Balance Sheet and Annual Return are the two pieces of information that must be filed every year.
Apart from this, the following documents can be submitted within the respective due dates as per the Companies Act of 2013.
- Return of Allotment by filing Form No. Pas-3,
- Change in Directors by filing Form No. DIR-12,
- Charges by Filing Form No. CHG- 1, 9, 4, etc.
ROC filing is mandatory for every firm or company established on Indian soil. The MCA has declared set dates and durations for filing different types of ROC. that’s what is discussed below!
What is ROC Filing Due Date
The due dates for various purposes associated with ROC are given below:
|Objective||Form No.||Duration||Due Date|
|Annual Return Filing||Form MGT-7||2 months from the date of the Annual general meeting.||29 Nov (If Agm held on 30 Sept)|
|Filing of Annual Account||Form AOC-4, AOC-4 CFS||1 month from the date of the Annual General Meeting.||29 Oct (If Agm held on 30 Sept)|
|Auditor Appointment||Form ADT-1||15 days from the date of the Annual general meeting||15 Oct (If Agm held on 30 Sept)|
|Filing of Cost Audit Report||Form CRA-4||1 month from the date mentioned on the cost audit report receipt.||Within a month of receipt of the cost audit report.|
|Filing of resolutions with MCA for Board Report and Annual Accounts||MSME-1||Within one month for every 6 months of a year.||30 April and 31 Oct.|
What is the Penalty for Non-Filing ROC Forms?
A company is liable to pay a penalty for Non-filing of ROC forms after the due date. If the annual return is filed after 2 months from the date of the Annual General Meeting or after 29 Nov, a penalty will be imposed on the company.
The Ministry of Corporate Affairs has proposed changes to impose an additional fee of INR 100 per day for filings as per section 92 or section 137 of the companies act, 2013.
The fee will be charged for the late ROC filings.
So, it is advised to the companies and LLPs to file all of the ROC forms within the due date to be saved from the penalty of INR 100 per day.
The penalty of INR 100 will be applied from the last date of filing to the date of filing of the ROC, subject to a maximum penalty of INR 2,00,000.
After looking into the penalty, and time limit let’s move to understand what is the need for filing ROC.
Why is ROC Filing Needed?
ROC filing is necessary for the legal stature of the company. Any company loses its existential rights if the ROC forms are not filed. ROC filing is a proof that the company is active.
Other factors that encourage a company to file ROC forms are shared below.
ROC states the financial condition of the company by submitting the annual account reports and audit reports. It helps the audit department to analyze whether a company is in profit or loss.
1. It also helps the government to calculate the income tax liability of the company, filing taxes on time, the different sources of money, etc.
2. It keeps the MCA informed of the current managerial structure of the company like who is in charge of the company, what year it’s been founded, any acquisition, bankruptcy, etc.
3. Companies that don’t file their ROC for a longer period can lose their registration. Also, not filing ROC is subject to a penalty.
FAQ- What is ROC?
What is the Time Limit for ROC?
As general criteria, the time limit to file the annual account and annual audit report is thirty days from the date of the Annual General Meeting.
What Happens if ROC is Not Filed for 2 Years?
A penalty is charged to the company or person at the rate of INR 100 per day, till the date of final payment. Further, the ROC has power to strike the name of the company from the Register of Companies.
ROC hopes to set straight the basic concept behind its purpose and existence. ROC is governed by the Ministry of Corporate Affairs. The offices are spread across pan India. The process of filing ROC forms is online. The companies are mandatorily supposed to file their ROC forms every year. If the filings are not done timely, a penalty provision is also there. So, follow the guidelines of ROC and file on time.
For further details head to the recommended blogs section. If you have a question about ROC, feel free to contact us.