My company in Belgaum 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 Belgaum has not filed its annual return for the last two years, it can face penalties under the Companies Act, 2013, and you can regularise the filing by following specific steps outlined below.

Under Section 92 of the Companies Act, 2013, every company is required to file its annual return with the Registrar of Companies (RoC) within 60 days from the date of the Annual General Meeting (AGM). Failure to do so can result in the following penalties:

• For the company: A penalty of ₹100 for each day of default, subject to a maximum of ₹5 lakhs.
• For every officer in default: A penalty of ₹50,000, which may extend up to ₹1 lakh, as per Section 92(5).

To regularise the filing of the annual return, you can follow these steps:

• Gather Required Documents: Collect all necessary financial statements, records of meetings, and details of the company’s shareholding pattern for the relevant years.
• Prepare the Annual Return: Draft the annual return as per the prescribed format using Form MGT-7. Ensure that all details are accurate and compliant with the Companies Act, 2013.
• File with the Registrar: Submit the annual return along with the necessary financial statements and Form MGT-7 through the Ministry of Corporate Affairs (MCA) portal.
• Pay Penalties: Be prepared to pay the applicable late fees and penalties while filing the return. This can be done online during the filing process.
• Consider Additional Compliance: If there are other compliance issues, such as non-filing of financial statements, ensure to regularise those as well. You may need to file Form AOC-4 for financial statements.
• Seek Professional Assistance: It is advisable to consult a Company Secretary or a legal professional to navigate the filing process and ensure compliance with all regulatory requirements.

By following these steps, you can regularise your company's annual return filings and mitigate the penalties associated with non-compliance. Additionally, consider the provisions of Section 403 of the Companies Act, which provides for the compounding of offenses, should you need to address any severe penalties.