What is ROC Filing and Why is it Necessary?

Understand ROC filing requirements for Indian companies. Learn about the process, importance, and consequences of non-compliance.

Stay ahead of the curve with our expert guide to ROC filing. Understand why ROC filing is essential and what the process entails.

The Government of India has rules and regulations for every private corporation within the country. These corporations need to be transparent about their business and run their businesses with a clean, ethical mindset. At the very heart of the framework is the Registrar of Companies (ROC). ROC filing for all registered Indian companies requires different types of document submissions and return filing within various time frames.

Filing for ROC may incur fines and other legal penalties for non-compliance. This article is going to be helpful for the understanding of ROC filing procedure and its importance to every business house in India.

What is ROC Filing?

ROC filing is the submission of important documents and financial statements to the Registrar of Companies, who supervises the working of companies registered in India. The objective of ROC filing is that the companies should maintain proper and updated records in compliance with statutory requirements. It encourages transparency, accountability, and good governance within the organizations.

Why is ROC Filing Important?

1. Legal Compliance

• Mandatory Requirement: All registered companies under the Companies Act, 2013, are mandated to file specific documents and returns with the ROC.
• Avoidance of Penalties: Compliance avoids penalties and legal sanctions for the company.
• Maintenance of Legal Status: Filing within time helps maintain the legal status of the company and prevents deregistration.

2. Transparency and Trust

• Public Disclosure: The ROC filing helps make company operations public and develops trust among the shareholders and clients.
• Investor Confidence: ROC compliance for startup companies will help attract potential investors due to transparency.
• Stakeholder Relations: Accurate filings strengthen relationships with shareholders and regulatory authorities.

3. Corporate Governance

• Effective Governance: ROC obligations promote adherence to ethical practices and effective governance
• Board Oversight: Directors can regularly review company performance and financial health through filed documents.
• Risk Management: Timely filings help identify risks and enable proactive measures to address them.

4. Financial Health Assessment

• Financial Performance: Companies scrutinize their financial performance, profitability, and liquidity during the filing process.
• Creditworthiness: Banks and other lending institutions use ROC filings to determine creditworthiness.

5. Statutory Record Keeping

• Historical Data: ROC filings are done in time, thus providing a complete historical record of the operations and performance of a company.
• Legal Reference: ROC filings act as proof in court cases.
• Regulatory Compliance: They enable companies to comply with tax, foreign exchange, and environmental laws.

ROC Filing Process

1. Preparation of Financial Statements and Annual Return

The board of directors authorizes the preparation of the annual financial statements, like the balance sheet, profit and loss account, and statement of cash flows. The return for the previous year, regarding shareholders, the directors, and the business conduct, is made by the secretary or any person authorized by him.

2. Board Approval

The board considers and approves these financial statements with the annual return.

3. Annual General Meeting (AGM)

The accepted documents are submitted to the shareholders at the AGM for the shareholders to consider and pass.

4. Filing with the ROC

After approval, the documents are filed with the ROC through prescribed forms available on the MCA portal. Ensure that authorized signatories sign the documents and attach the necessary supporting papers

5. Payment of Fees

During the submission process, pay the stipulated filing fees.

6. ROC Verification

The ROC verifies the documents that have been filed. In the event of differences, queries arise, and the company has to respond within the given time limit

7. Acknowledgement and Certification

In case the documents are verified successfully, the ROC issues an acknowledgment and certification of filing.

Online Procedure for Filing ROC Forms

Step 1: Log in to the MCA Portal

Go to the official website of MCA. Log in with your User ID and Password.

Step 2: Uploading Form to MCA Portal

Go to the "Upload E-Forms" section under the "E-Forms" tab. Browse and upload the appropriate form.

Step 3: Payment and SRN Generation

Upon uploading, the portal will generate a Service Request Number. Click to make the payment and download the receipt of the payment.

Step 4: Download Payment Receipt and Acknowledgment

Download the challan receipt and acknowledgment slip, which would be required for subsequent reference.

Step 5: Track SRN Status

Use the "Track SRN" option on the portal to view the status of your submission.