Last updated: February 10th, 2023 12:10 PM

Why is ROC filing needed?

ROC (Registrar of Companies) filing refers to submitting various documents and returns to the Registrar of Companies. Every Company registered in India must file some forms annually with the ROC under the ministry of corporate affairs. Failing to file with these compliances can lead to the levy of hefty penalties and punishments. Thus, filing these returns within the stipulated time is of utmost importance. In this article, we will examine why ROC filing is needed.

ROC - Registrar of Companies

ROC is the regulatory body overseeing the functioning of companies in India. The ROC is established under the Ministry of Corporate Affairs (MCA) and is responsible for maintaining the database of all registered companies in India.

ROC filing  

ROC filing is a mandatory requirement for all companies registered in India, and companies are required to file various forms, returns, and documents with the ROC regularly. ROC filing includes the following:

• Annual financial statements
• Annual returns

As per sections 129 and 137 of the Companies Act 2013, every Company should file audited financial statements with the ROC. Similarly, under section 92 of the Companies Act 2013, the annual returns must be submitted to the ROC. Know more about the Introduction to Financial Statements Know more about the Annual Return Filing for the Company

Due Date for ROC filing    

• Every Company must file the financial statement form within 30 days of the annual general meeting.
• The annual returns company with a share capital must be filed within 60 days of the Company's annual general meeting.

Refer to our article to know more about the Due Date for ROC filing

Amount of penalty levied on late ROC filing 

The penalty amount is directly proportional to the number of days the applicant delays. Following is the amount of penalty:

Sl.No	Period of Delay	Penalty
1	Up to 30 days delay	Two times of regular filing fee
2	More than 30 days and up to 60 days	Four times of regular filing fee
3	More than 60 days and the upto 90 days	Six times of regular filing fee
4	More than 90 days and upto 180 days	Ten times of regular filing fee
5	More than 180 days	twelve times of regular filing fee

Why is ROC filing needed?

ROC filing helps maintain accurate and up-to-date records of a company, ensure its legal compliance and demonstrate its commitment to transparency and credibility. It is also necessary for facilitating various business operations.

• Legal Compliance: Companies Act 2013 mandates that all companies registered in India must regularly file Annual financial statements and Annual returns with ROC. ROC filing is a legal requirement, and non-compliance can attract penalties and legal action.
• Maintaining Company Records: ROC filing helps maintain accurate and up-to-date records of a company, including details about its directors, shareholders, financial statements, and other important information.
• Transparency and Credibility: Filing with the ROC demonstrates a company's commitment to transparency and credibility, which is essential for building trust among stakeholders such as customers, suppliers, investors, and lenders.
• Facilitating Business Operations: ROC filing is also essential for business operations, such as opening a bank account, securing loans, and entering into contracts with clients and suppliers.

In summary, ROC filing is essential for maintaining a company's legal compliance, records, transparency, and credibility and facilitating its business operations.