My company in Agra has not filed its annual return for the last two years; what penalties apply and how can I regularise the filing?

Detailed Legal Analysis

If your company in Agra has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. The penalties for non-filing, as well as the process to regularize the filings, are outlined below.

According to Section 92 of the Companies Act, 2013, every company is required to file its annual return within 60 days from the date of holding its annual general meeting (AGM). Failure to do so attracts specific penalties.

• Penalties for Non-filing:
  • Under Section 92(5), a company that fails to file its annual return is liable to a penalty of ₹50,000, which can increase to ₹1,000 for each day of continuing default.
  • Additionally, the officers of the company who are in default may also be liable to a penalty ranging from ₹25,000 to ₹1,00,000, or imprisonment for a term that may extend to six months, or both, as per Section 92(6).
• Regularizing the Filing:
  • Prepare the necessary documents, including the annual return and financial statements for the missed years.
  • Ensure that all financial records are up-to-date and comply with the requirements set forth by the Companies Act, 2013.
  • File the annual returns with the Registrar of Companies (RoC) through the Ministry of Corporate Affairs (MCA) portal. This can be done using Form MGT-7 for the annual return and Form AOC-4 for the financial statements.
  • Pay the applicable late fees as specified under the Companies (Registration Offices and Fees) Rules, 2014, which stipulates that the fee will be as per the delay in filing.
  • Consider seeking approval from the Board of Directors or the shareholders (if required) for any necessary resolutions related to the filings.
  • If the company has defaulted for more than a year, it may also consider seeking a compounding of offenses under Section 441 of the Companies Act, 2013, which allows for penalties to be compounded by the Regional Director.

It is imperative to address these filings at the earliest to avoid further penalties and complications with regulatory authorities. Consulting a qualified company secretary or legal advisor can also provide valuable assistance in navigating this process efficiently.