Who should read this: directors, designated partners, company secretaries, accountants and auditors of private, public, one person and small companies, and of LLPs, preparing the annual filings due in the second half of 2026 for the financial year that ended on 31 March 2026.

1. Statutory Overview and Legislative Intent

Every company and every LLP registered in India enjoys limited liability. The price of that privilege is public disclosure. The annual filing regime exists so that creditors, investors, employees, regulators and the public can see, through the Registrar of Companies (ROC), what the entity owns, what it owes, who controls it and whether it is solvent. The MCA21 registry is, in effect, the public balance sheet of corporate India.

Companies Act, 2013

  • Section 129: financial statements must give a true and fair view, comply with notified Accounting Standards (or Ind AS where applicable) and follow the form in Schedule III.
  • Section 134: the Board approves the financial statements and attaches the Board's report, which includes the directors' responsibility statement and disclosures prescribed by Rule 8 of the Companies (Accounts) Rules, 2014.
  • Section 96: every company other than a One Person Company (OPC) must hold an Annual General Meeting (AGM) within six months from the close of the financial year, and not more than fifteen months after the previous AGM. The first AGM may be held within nine months of the close of the first financial year.
  • Section 137: a copy of the adopted financial statements, including consolidated financial statements, must be filed with the Registrar within 30 days of the AGM in e-form AOC-4.
  • Section 92: every company must prepare an annual return in the prescribed form and file it within 60 days from the date of the AGM (or from the date on which the AGM should have been held).
  • Section 143(11): the Central Government may require the auditor's report of specified classes of companies to include matters prescribed by order. The Companies (Auditor's Report) Order, 2020 (CARO 2020) is issued under this power.

Rules that operationalise the filings

  • Companies (Accounts) Rules, 2014, Rule 12: manner of filing financial statements (AOC-4, AOC-4 CFS, AOC-4 XBRL, AOC-4 NBFC (Ind AS)).
  • Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015: classes of companies that must file in XBRL.
  • Companies (Management and Administration) Rules, 2014, Rule 11: annual return in Form MGT-7, and Form MGT-7A for OPCs and small companies.
  • Companies (Registration Offices and Fees) Rules, 2014: filing fees and additional fees for delayed filing.

Limited Liability Partnership Act, 2008

  • Section 34 read with Rule 24 of the LLP Rules, 2009: every LLP must maintain proper books of account on cash or accrual basis and double entry, and file a Statement of Account and Solvency in Form 8 within 30 days from the end of six months of the financial year.
  • Section 35 read with Rule 25: every LLP must file an Annual Return in Form 11 within 60 days of the close of its financial year.

2. Applicability and Threshold Matrix

The first task each year is to classify the entity correctly. A wrong classification leads to the wrong form, rejected filings or an annual return certified by the wrong professional.

FilingWho must fileKey threshold or conditionCertification or signing
AOC-4Every company not required to file in XBRLStandalone financial statements, Board's report, auditor's reportDirector (DSC); certified by practising CA, CS or CMA
AOC-4 CFSCompanies with one or more subsidiaries, associates or joint venturesSection 129(3) consolidationDirector (DSC); practising professional
AOC-4 XBRLListed companies and their Indian subsidiaries; companies with paid-up capital of Rs. 5 crore or more; companies with turnover of Rs. 100 crore or more; companies required to prepare Ind AS financial statementsExclusions: banking, insurance, power companies and NBFCs follow sector-specific instructionsDirector (DSC); practising professional; XBRL validation tool
MGT-7All companies other than OPCs and small companiesFull annual return with shareholding, transfers, indebtedness, meetings, remunerationDirector and Company Secretary (if any); MGT-8 certificate by a practising CS for listed companies and companies with paid-up capital of Rs. 10 crore or more or turnover of Rs. 50 crore or more
MGT-7AOne Person Companies and small companiesSmall company under Section 2(85): paid-up capital not exceeding the prescribed limit and turnover not exceeding the prescribed limit (see note below)Director and Company Secretary (if any); no practising professional certification
LLP Form 8Every LLPAccounts audited if turnover exceeds Rs. 40 lakh or contribution exceeds Rs. 25 lakh (Rule 24(8))Two designated partners (DSC); certified by practising CA, CS or CMA
LLP Form 11Every LLPPartners, contribution, body corporate partners, penalties imposedDesignated partner; certificate by practising CS where turnover exceeds Rs. 50 crore or contribution exceeds Rs. 50 lakh
Small company limits changed more than once. The limits under Section 2(85) read with Rule 2(1)(t) of the Companies (Specification of Definitions Details) Rules, 2014 were raised to paid-up capital up to Rs. 4 crore and turnover up to Rs. 40 crore with effect from 15 September 2022, and were revised again by the MCA in 2025. Always test the limits as they stood on the relevant balance sheet date using the current notification on mca.gov.in. Public companies, holding or subsidiary companies, Section 8 companies and companies governed by a special Act can never be small companies, whatever their size.

CARO 2020: does it apply?

CARO 2020 applies to every company, including foreign companies, except:

  • banking companies, insurance companies, Section 8 companies, OPCs and small companies; and
  • a private limited company that is not a holding or subsidiary of a public company and that, as on the balance sheet date, has paid-up capital plus reserves and surplus not exceeding Rs. 1 crore, total borrowings from banks or financial institutions not exceeding Rs. 1 crore at any point during the year, and total revenue (including revenue from discontinued operations) not exceeding Rs. 10 crore during the year.

All three conditions of the private company exemption must be met together. Breaching any one of them brings the company within CARO for that year.

The CARO 2020 clauses that most often trigger questions

ClauseSubjectWhat the auditor checks
3(i)Property, plant and equipmentRecords, physical verification, title deeds of immovable property in the company's name, revaluation, benami proceedings
3(ii)Inventory and working capitalPhysical verification discrepancies of 10% or more in aggregate per class; quarterly statements to banks for sanctioned limits above Rs. 5 crore agreeing with books
3(iii)Loans, advances and guaranteesTerms not prejudicial, repayment schedules, overdue amounts, loans repayable on demand
3(iv)Sections 185 and 186Loans to directors and inter-corporate limits
3(v)DepositsCompliance with Sections 73 to 76 and the Acceptance of Deposits Rules
3(vii)Statutory duesRegular deposit of GST, PF, ESI, income tax, customs and cess; arrears outstanding for more than six months; disputed dues by forum
3(viii)Unrecorded incomeIncome surrendered in tax assessments but not recorded in books
3(ix)Defaults and use of fundsDefault in repayment, wilful defaulter status, term loans used for stated purpose, short-term funds used for long-term purposes
3(xi)Fraud and whistle-blower complaintsFrauds noticed, ADT-4 reports to the Central Government
3(xiii)Related party transactionsCompliance with Sections 177 and 188 and disclosure in financial statements
3(xvii)Cash lossesCash losses in the current and immediately preceding year
3(xix)Material uncertaintyAbility to meet liabilities falling due within one year
3(xx)CSRUnspent CSR amounts transferred to Schedule VII funds or Unspent CSR Account within the statutory time
3(xxi)Consolidated financial statementsQualifications or adverse remarks in CARO reports of group companies

3. Step-by-Step Compliance and Filing Workflow

Part A: Companies

  1. Close the books and finalise the trial balance. Complete bank, GST, TDS, PF and ESI reconciliations, fixed asset register, inventory valuation, MSME payable classification and related party listing. Schedule III requires MSME dues, ageing of trade payables and receivables, title deeds not in the company's name, ratios with explanations for variance above 25% and other additional regulatory information.
  2. Statutory audit. The auditor appointed under Section 139 issues the audit report, the CARO report (where applicable) and the report on internal financial controls under Section 143(3)(i) (private companies with turnover below Rs. 50 crore and borrowings below Rs. 25 crore are exempt from the IFC reporting). The auditor generates a UDIN for every report.
  3. Board meeting under Section 134. The Board approves the financial statements and the Board's report. The financial statements are signed by the chairperson or by two directors (one of whom is the managing director where there is one), the CEO, CFO and CS where appointed. Public companies file the board resolution in MGT-14 within 30 days under Section 179(3)(g); private companies are exempt from filing these Board resolutions.
  4. Notice of AGM. Send notice at least 21 clear days before the AGM with the financial statements, auditor's report and Board's report. Shorter notice is permitted with the consent of at least 95% of members entitled to vote.
  5. Hold the AGM by 30 September 2026 for the financial year 2025-26 (unless the ROC has granted an extension of up to three months under Section 96(1), which is not available for the first AGM). Adopt the accounts, declare dividend if any, and re-appoint or appoint the auditor. File ADT-1 within 15 days if a new auditor is appointed or an auditor is appointed for a new term.
  6. Prepare AOC-4. Log in to the MCA V3 portal at mca.gov.in with the company's business user ID, open the AOC-4 web form, enter the CIN to pre-fill master data, key in balance sheet and profit and loss figures, and attach: (a) the signed financial statements with notes, (b) the Board's report with annexures (including AOC-2 for related party contracts, CSR annual report where applicable and the secretarial audit report where applicable), (c) the auditor's report and CARO report, and (d) the AGM notice where required. Where the company has a CSR obligation, complete Form CSR-2 as an addendum.
  7. Affix digital signatures. A director's Class 3 DSC (with an active DIN), and the practising professional's DSC with membership number and certificate details. Pay the fee online and download the challan with the SRN.
  8. Prepare MGT-7 or MGT-7A. Pre-fill from master data, then complete principal business activities, holding, subsidiary and associate details, share capital and debentures, shareholding pattern, transfers, turnover and net worth, number of members and debenture holders, details of promoters, directors and KMP with changes, meetings of members, Board and committees with attendance, remuneration of directors and KMP, matters relating to certification of compliances, penalties and compounding. Attach the list of shareholders and debenture holders if not given in the form, and the MGT-8 certificate where applicable.
  9. Sign and file within 60 days of the AGM. Retain the SRN acknowledgement and the approved status. Check the company master data a few days later to confirm that the filing status has been updated.

Part B: LLPs

  1. Finalise books by 31 March. LLPs must follow a financial year ending on 31 March.
  2. Form 11 (Annual Return) by 30 May. Report the designated partners and partners, contribution received, changes during the year, details of body corporate partners and nominees, and any penalties or compounding. Sign with the designated partner's DSC; attach the CS certificate where required.
  3. Audit where required. Accounts must be audited if turnover exceeds Rs. 40 lakh or contribution exceeds Rs. 25 lakh. The partners may appoint the auditor at any time during the year but at least 30 days before the end of the financial year.
  4. Form 8 (Statement of Account and Solvency) by 30 October. Part A is a declaration of solvency by the designated partners, stating that the LLP is or is not able to pay its debts in full as they become due in the normal course of business. Part B is the statement of assets and liabilities and the statement of income and expenditure, including contingent liabilities. Two designated partners sign with DSC, and a practising CA, CS or CMA certifies the form.
DSC and DIN hygiene: a filing will fail if the signing director's DIN is deactivated for non-filing of DIR-3 KYC or if the DSC is expired or not registered against the DIN on the MCA portal. Check both before the filing week, not on the due date.

4. Statutory Due Dates and Frequency Table

ComplianceFrequencyDue date for FY 2025-26Governing provision
LLP Form 11 (Annual Return)Annual30 May 2026Section 35, LLP Act; Rule 25
AGM of companiesAnnual30 September 2026Section 96
ADT-1 (auditor appointment at AGM)Event basedWithin 15 days of the AGMSection 139; Rule 4(2), Audit and Auditors Rules
AOC-4, AOC-4 CFS, AOC-4 XBRLAnnualWithin 30 days of the AGM (30 October 2026 if AGM held on 30 September)Section 137; Rule 12
AOC-4 for OPCAnnualWithin 180 days from the close of the financial year (27 September 2026)Proviso to Section 137(1)
LLP Form 8 (Account and Solvency)Annual30 October 2026Section 34; Rule 24
MGT-7 or MGT-7AAnnualWithin 60 days of the AGM (29 November 2026 if AGM held on 30 September)Section 92(4); Rule 11
MGT-7A for OPCAnnualWithin 60 days from the date on which the AGM would have been dueSection 92 read with Rule 11
Filing where AGM was not heldAnnualWithin 30 days (AOC-4) and 60 days (MGT-7) from the last date on which the AGM should have been held, with reasonsSection 137(1) proviso; Section 92(4)

5. Interest, Late Fees and Penal Consequences

Additional fee: Rs. 100 per day, without any upper limit

Under the Companies (Registration Offices and Fees) Rules, 2014, as amended with effect from 1 July 2018, a delay in filing AOC-4 or MGT-7 or MGT-7A attracts an additional fee of Rs. 100 for every day of delay, in addition to the normal filing fee. There is no cap. A return filed one year late therefore costs Rs. 36,500 per form in additional fees alone. LLP Forms 8 and 11 carry the same Rs. 100 per day additional fee, also without a cap, under the LLP Rules. These are fees, not penalties, so they are payable automatically at the time of filing and are separate from any penalty adjudicated later.

DefaultSectionPenalty on entityPenalty on officer or partner in default
Annual return not filed92(5), Companies ActRs. 10,000 plus Rs. 100 per day of continuing default, maximum Rs. 2,00,000Rs. 10,000 plus Rs. 100 per day, maximum Rs. 50,000
Financial statements not filed137(3), Companies ActRs. 10,000 plus Rs. 100 per day, maximum Rs. 2,00,000Managing director, CFO or other responsible officer: Rs. 10,000 plus Rs. 100 per day, maximum Rs. 50,000
AGM not held99, Companies ActUp to Rs. 1,00,000; continuing default up to Rs. 5,000 per daySame as company
Small company or OPC default446B, Companies ActPenalty not exceeding one half of the penalty specified, maximum Rs. 2,00,000Maximum Rs. 1,00,000
Form 8 not filed34(5), LLP ActRs. 100 per day, maximum Rs. 1,00,000Each designated partner: Rs. 100 per day, maximum Rs. 50,000
Form 11 not filed35(3), LLP ActRs. 100 per day, maximum Rs. 5,00,000Each designated partner: Rs. 100 per day, maximum Rs. 1,00,000

Consequences that matter more than money

  • Director disqualification under Section 164(2)(a): if a company fails to file financial statements or annual returns for any continuous period of three financial years, every director of that company becomes ineligible to be reappointed in that company or appointed in any other company for five years. The DIN is flagged, and directorships in other companies are vacated under Section 167(1)(a).
  • Strike-off under Section 248(1): the ROC may strike off a company that has not been carrying on business for two financial years and has not applied for dormant status. Long non-filing is the usual evidence.
  • Lender and investor consequences: due diligence reports flag non-filing, banks treat it as a covenant breach, and tender authorities reject bidders whose MCA status is not active.
  • Adjudication: penalties are imposed by the adjudicating officer under Section 454 (Companies Act) or Section 76A (LLP Act) after a show cause notice and hearing. Appeals lie to the Regional Director within 60 days.

6. Practical Audit Pitfalls and Best Practices

  • Reconcile share capital across forms. MGT-7 shareholding must agree with the register of members (MGT-1), PAS-3 allotments, SH-4 transfers and the demat statements from the RTA. A mismatch is the single most common reason for ROC queries.
  • Match AOC-4 numbers to the signed accounts. The form figures must tie to the PDF attached, line by line, including previous year figures. XBRL instance documents must pass the MCA validation tool, and taxonomy tags must reflect the actual line items.
  • Get the date sequence right. The audit report date cannot precede the Board approval date, the AGM cannot precede the notice, and ADT-1 must be filed within 15 days of the AGM. The ROC system cross-checks dates.
  • Disclose MSME dues correctly. Schedule III requires principal and interest due to micro and small enterprises. Obtain Udyam registration status from vendors before year end. This disclosure also drives the Section 43B(h) income tax disallowance.
  • Tie CARO clause 3(vii) to tax portals. Before the auditor signs, reconcile GST, TDS, PF and ESI dues with the GST portal ledgers, TRACES, EPFO ECR history and ESIC challans. Arrears appearing on government portals but not in the CARO report invite questions.
  • Complete the related party trail. Board approvals under Section 188, the register of contracts in MBP-4, AOC-2 in the Board's report and Ind AS 24 or AS 18 disclosures in the notes must all describe the same transactions.
  • Check the CSR arithmetic. The CSR obligation is 2% of average net profits of the three immediately preceding financial years, computed under Section 198. Unspent amounts must move to the Unspent CSR Account within 30 days of the year end for ongoing projects, or to a Schedule VII fund within six months otherwise.
  • For LLPs, file Form 3 changes first. Partner changes and contribution changes in Form 3 and Form 4 must be filed before Form 11, otherwise the annual return will not agree with the master data.
  • Maintain a compliance calendar with buffer. Plan Board meetings in July or August, AGMs in early September and filings by mid October. Avoid the last week, when the portal is slowest.
  • Preserve evidence. Keep signed minutes, attendance registers, notices, proof of dispatch, the auditor's consent and eligibility certificate, and challans for at least eight years.

7. Statutory References and Official Sources

  • Companies Act, 2013: Sections 2(85), 92, 96, 99, 129, 134, 135, 137, 139, 143(11), 164(2), 167, 179(3), 248, 446B and 454 (India Code: indiacode.nic.in; MCA: mca.gov.in).
  • Companies (Accounts) Rules, 2014, Rules 8 and 12.
  • Companies (Management and Administration) Rules, 2014, Rule 11 (Forms MGT-7 and MGT-7A) and Rule 11(2) (Form MGT-8).
  • Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015.
  • Companies (Registration Offices and Fees) Rules, 2014, as amended with effect from 1 July 2018 (additional fee of Rs. 100 per day).
  • Companies (Specification of Definitions Details) Rules, 2014, Rule 2(1)(t), as amended by G.S.R. 700(E) dated 15 September 2022 and subsequent amendments.
  • Companies (Auditor's Report) Order, 2020, issued by MCA notification S.O. 849(E) dated 25 February 2020.
  • Limited Liability Partnership Act, 2008: Sections 34, 35 and 76A; LLP Rules, 2009, Rules 24 and 25 and the fee Annexure.
  • Schedule III to the Companies Act, 2013, as amended by MCA notification dated 24 March 2021.
  • Official portals: MCA21 V3 at mca.gov.in for filing and company master data; ICAI UDIN portal at udin.icai.org.