Accounting & Compliance

For almost every business, yes. The sole proprietorship firm is the exception, and only up to a point: once it crosses a prescribed turnover it has to maintain accounts as well.

Companies carry the heaviest version of the obligation, because their books have to be kept to the accounting standards that apply to them rather than simply be accurate.

The immediate benefit is that it produces the data every authority asks for, so an MCA filing, an income tax return and a GST return are all drawn from one set of records rather than assembled three times.

The larger one is that it shows the owner where money is going while there is still time to act on it, which is the difference between accounts as a compliance chore and accounts as a management tool.

For every company and LLP registered with the MCA, yes, and it does not depend on turnover or capital. An entity that did no business at all in the year still files.

Late filing or non-filing attracts an additional fee and penalties, which accrue rather than cap.

Yes. The first financial year is shorter or longer depending on the date of incorporation, but the filing for it is mandatory either way.

The financial statements for the year, audited where an audit is required, together with the details of the directors or partners for that year.

For a company, always. For an LLP it depends: the accounts must be audited if turnover exceeds INR 40 lakh or the partners’ contribution exceeds INR 25 lakh.