Who must deposit the accounts in the commercial register?

Companies are required to file their annual accounts in the commercial register so that anyone can access their accounting information.

It is the administrators who will communicate the annual accounts, the management report and the proposed application of the result, as well as the consolidated accounts and management report.

But what are annual accounts?

Annual accounts are the accounting documents that compile a company's financial information every 12 months.

They are made up of the balance sheet, the profit and loss account, a statement that reflects the changes in equity for the year, a statement of cash flows and the report. These documents must show a true picture of the assets, the financial situation and the results of the company.

These annual accounts will be approved by the general meeting and the agreements relating to their approval will be recorded in a general General Meeting of members.

Who is obliged to present the annual accounts?

This legal obligation to submit annual accounts affects:

• Limited companies
• Limited companies.
• Foreign companies that have a branch in Spain.
• Pension fund.
• Limited partnerships.

Therefore, individual or self-employed entrepreneurs are not required to submit their annual accounts to the commercial register.

How are the annual accounts presented in the commercial register?

The annual accounts are submitted to the commercial register of the province where the tax domicile is located. However, it is currently also possible to take advantage of the College of Registrars' online platform. The maximum deadline for submitting the necessary documentation is seven months from the end of the financial year.

Documentation to present

• Standardized model of annual accounts, including treasury stock and environmental information.
• Instance of presentation in triplicate.
• Certificate of the minutes of the general meeting of members, if applicable.
• Proof of bank payment of the deposit.
• Advice on the presentation of annual accounts.

Financial sanctions

Despite seeming like a simple procedure, its presentation in the commercial register is of great importance since it is a legal requirement that almost all companies must comply with.

If the submission deadline is exceeded without the process having been carried out, the Accounting and Auditing Institute can impose a financial penalty ranging from 1,200 euros to 60,000 euros. And it can reach 300,000 euros in the cases of large companies, if they had not presented them.

After this period, the legal obligation to present the annual accounts continues, so, if a year has passed, the registration sheet is provisionally closed.

These are administrative consequences, but there are others to consider. For example, the bad image that can be offered to banks and suppliers, especially in terms of risk analysis.

Benefits

Presenting the annual accounts can bring benefits to the company as some errors can be identified. The amendment of defects in the annual accounts does not entail any penalty and allows the correction of financial information that will help the company in its accounting.

In addition, presenting the annual accounts correctly allows suppliers and credit companies to have reliable and proven information about the company.

This makes it much easier to get credit and gives you a key competitive advantage over those companies that don't present their accounts properly and on time.

If you need more information, do not hesitate to contact DATA AND SERVICES