My company in Ahmedabad 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 Ahmedabad has not filed its annual return for the last two years, it can face penalties under the Companies Act, 2013. To regularize the filing, you need to take specific steps to ensure compliance and mitigate the penalties.

Under the Companies Act, 2013, the annual return must be filed in accordance with Section 92. Failure to file the annual return within the prescribed time frame can lead to the following penalties:

• For a company that fails to file its annual return, a penalty of INR 100,000 (one lakh) may be imposed.
• Additionally, the company may incur a daily fine of INR 1,000 for each day of default until the return is filed, as per Section 92(5).
• Directors and officers in default may also face penalties, which could involve fines ranging from INR 25,000 to INR 1,00,000 and/or imprisonment for a term that may extend up to six months.

To regularize the filing of annual returns, follow these steps:

• Prepare the Annual Return: Collect all necessary information and documentation required to complete the annual return as per Section 92 of the Companies Act, 2013.
• File the Return: Submit the annual return using the e-filing portal of the Ministry of Corporate Affairs (MCA) within the stipulated time frame.
• Pay Penalties: Be prepared to pay any applicable penalties while filing the return. The penalties can be paid online through the MCA portal.
• File Form GNL-1: If you are filing the annual return after the due date, you may need to file Form GNL-1 for seeking the Registrar's approval to file the delayed return.
• Regularize Other Defaults: If there are any other outstanding filings or defaults, address them simultaneously to avoid further penalties.
• Consult Professionals: It is advisable to engage a company secretary or legal professional to ensure compliance with all legal requirements and to assist in the filing process.

By taking these steps, you can successfully regularize the filing of your company’s annual returns and minimize the impact of any penalties imposed due to the delay.