My company in Amravati 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 Amravati has not filed its annual return for the last two years, it can face significant penalties as per the Companies Act, 2013, specifically under Section 92 and Section 137. To regularise the filing, you must take specific steps to ensure compliance.

Here are the penalties and the process for regularising your annual return filing:

• Penalties for Non-Compliance:
  • Under Section 92(5), a company that fails to file its annual return is liable to a penalty of Rs. 1 lakh, and in case of continuing default, an additional penalty of Rs. 5,000 for each day during which the default continues.
  • Under Section 137, if a company fails to file its financial statements, it may incur a penalty of Rs. 1 lakh, with a similar continuing penalty of Rs. 5,000 per day.
  • Additionally, officers of the company in default may also be liable for penalties, including fines and possible imprisonment under Section 448 for false statements.
• Steps to Regularise Filing:
  • Gather Necessary Documents: Collect all required documents, including the financial statements and details of the company’s directors and shareholders.
  • Prepare Annual Return: Ensure the annual return is properly drafted in accordance with the provisions of the Companies Act, 2013.
  • File with Registrar of Companies (ROC): Use the Ministry of Corporate Affairs (MCA) online portal to file the annual return. This can be done using the forms MGT-7 for annual return and AOC-4 for financial statements.
  • Pay Penalties: Be prepared to pay any applicable penalties for late filing at the time of submission.
  • Seek Professional Help: Consider consulting a company secretary or legal professional to ensure compliance and to address any specific legal queries.
• Future Compliance:
  • Establish a compliance calendar to track due dates for annual returns and financial statements.
  • Regularly review and update your internal processes to ensure adherence to the Companies Act.

By following these steps and ensuring timely compliance in the future, your company can avoid further penalties and maintain its good standing with regulatory authorities.