My company in Bhavnagar has not filed its annual return for the last two years; what penalties apply and how can I regularise the filing?
SA Asked by Saurabh Pandey from India
Quick Answer
If your company in Bhavnagar has not filed its annual return for the last two years, you may face penalties as per the Companies Act, 2013, and you can regularize the filing by following certain steps. Under the Companies Act, 2013, specifically Section 92 and Section 137, every company is required to file its annual return and financial statements, respectively.
Detailed Legal Analysis
If your company in Bhavnagar has not filed its annual return for the last two years, you may face penalties as per the Companies Act, 2013, and you can regularize the filing by following certain steps.
Under the Companies Act, 2013, specifically Section 92 and Section 137, every company is required to file its annual return and financial statements, respectively. The failure to do so can lead to significant penalties.
- Penalties for Non-Compliance:
- As per Section 92(5), if a company fails to file its annual return, it may be liable to pay a penalty of ₹50,000, and in case of continuing default, an additional ₹1,000 for each day during which such default continues.
- According to Section 137(3), for not filing the financial statements, the company may have to pay a penalty of ₹1 lakh and ₹5,000 for each day of continuing default.
- Regularising the Filing:
- Prepare the necessary documents, including the annual return (Form MGT-7) and financial statements (Form AOC-4).
- Ensure that the documents are compliant with the provisions of the Companies Act, 2013, and the rules made thereunder.
- File the documents with the Registrar of Companies (RoC) through the Ministry of Corporate Affairs (MCA) portal.
- Pay the applicable late fees as stipulated under the Companies (Registration Offices and Fees) Rules, 2014, which includes the penalties mentioned earlier.
- If the company has not filed for multiple years, consider seeking a professional's advice, such as a Company Secretary or Chartered Accountant, to assist with compliance and to possibly apply for condonation of delay as per Section 460 of the Companies Act, 2013.
It is crucial to act promptly to avoid accumulating further penalties and to maintain compliance with regulatory requirements. Regular filing ensures good standing for your company and avoids legal complications in the future.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.