What is Public Limited Company Annual Filing ?

What is a Public Limited Company?

• A Public Limited Company is a company that offers shares to the general public and has limited liability.
• Moreover, Public Limited Company is required to publish its true financial status to its shareholders.

Annual Return of the Public Limited Company  

• The Public Limited Companies are undoubtedly required to make the largest number of compliances every year, as compared to those by all other types of companies.
• Every Public Limited Company in India mandatorily required to file annual filling every year as per the Companies Act, 2013.
• The Public Limited Company needs to file the Balance Sheet, P&L Account and other documents with MCA.
• The Annual Return is totally different from the income tax department and it’s governed by Ministry of Corporate Affairs.

Advantages of Public Limited Company Annual Filing

• Proper compliance according to company law is the obligation of every company, it creates transparency. The regular compliance increases the credibility of the company.
• The Annual Compliance helps in marinating active status.
• Regular annual compliance results in assuring the clients that the company is regularly reviewing its operation. So, they can trust the company regarding their operations.
• Annual compliance gives a competitive edge in the market. It can be used in advertising the business & assuring the investors or customers about the company’s business.
• Annual compliance by the companies ensures that the data collected for annual compliance is correct.
• Many times small businesses end up with heavy penalties as they do not comply with annual compliances. So, regular annual compliances result in avoiding heavy penalties.