Annual MCA Compliance for an Insurance Company - Up to 20% OFF on Professional Fees

The main Forms for annual MCA-related regulatory obligations includes: 1) AOC-4 for financial statements; 2) MGT-7/MGT-7A for annual returns; 3) ADT-1 for auditor appointment; 4) MGT-14 for filing resolutions; 5) DIR-3 for annual director KYC; 6) DPT-3 for return on deposits and loans; 7) CRA-2/CRA-4 for appointment of cost auditor and related filings; 8) CSR-2 for corporate social responsibility.

The AOC-4 Form includes: 1) balance sheet, cash flow statement, and profit & loss in the XBRL format; 2) directors’ and auditor’s report; 3) AOC-1 statement of a subsidiary entity of the applicable.

Yes, insurance entities are required to establish a structured framework and internal governance system, including committees like:

• Audit committee
• Investment committee
• Risk mitigation committee
• Corporate Social Responsibility (CSR) if the INR 5 crore or more net profit. 
• Policyholder Protection, Grievance Redressal, and Claims Monitoring Committee
• Nomination and Remuneration Committee
• With Profits Committee (if applicable)

Any failure in reporting or submitting the mandatory and obligatory filings will result in penalties, ranging from INR 50,000 to INR 5 lakhs against the defaulting companies. Officers and directors are also held liable for a sum between INR 25,000 and INR 2 lakhs, depending on the type of non-compliance.

Given below are the types of entities required to submit the MCA return filing for insurance companies-

• Life insurance
• General insurance
• Health insurance
• Reinsurance
• Listed and unlisted insurance companies
• Foreign insurance entities with branch offices and reinsurance branches

The due dates and timelines for the insurance company ROC compliance are as follows:

• Four board meetings- 120-day gap between the preceding and succeeding ones.
• AGM within six months from the FY end, meaning Sept. 30. 
• AOC-4 XBRL within 30 days of the annual general meeting. 
• MGT-7 within 60 days of the AGM. 
• ADT-1 within 15 days of the annual general meeting. 
• CSR-2 is filed with AOC-4 or notified by the MCA. 
• MBP-1 after the first board meeting or whenever there’s a change in the interests.
• DIR-12, PAS-3, INC-22, CHG-1, MGT-14, or SH-7 within 30 days of the said change. 

Event-based regulatory compliance filings are reported by an insurance entity if there’s a change in the company’s Memorandum of Association, Articles of Association, directors/KMPs, official company listed address, or legal name.

Directors of an insurance entity are required to submit the DIR-3 KYC Form to avoid the potential deactivation of their “Director Identification Number” and sanctions. The return must be filed by Sept. 30.

Yes, all insurance entities are required to submit audited financial statements, covering balance sheets, cash flow, profit & loss accounts, and director/auditor reports in an XBRL format.