My company in Bhubaneswar 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 Bhubaneswar has not filed its annual return for the last two years, it can face penalties under the Companies Act, 2013, specifically Section 92 and Section 137.

Here are the penalties applicable for non-filing of annual returns:

• Under Section 92(5), a company that fails to file its annual return is liable to a penalty of ₹100,000 (one lakh rupees).
• Additionally, under Section 92(6), every officer of the company who is in default shall be liable to a fine of ₹1,000 for each day during which the default continues, subject to a maximum of ₹2,00,000 (two lakh rupees).
• For non-filing of financial statements under Section 137, a similar penalty structure applies, with the company facing a fine of ₹1,00,000 and officers facing fines of ₹1,000 per day for continued non-compliance.

To regularise the filing of your company's annual returns, follow these steps:

• Compile Necessary Documents: Gather all requisite documents, including financial statements, statutory registers, and previous annual returns.
• Prepare Annual Returns: Ensure that the annual returns are accurately completed as per the requirements outlined in Form MGT-7 for the annual return and Form AOC-4 for financial statements.
• File with Registrar of Companies (RoC): Submit the completed forms through the Ministry of Corporate Affairs (MCA) website. Ensure to select the appropriate financial year for the filings.
• Pay Penalties: Be prepared to pay any penalties that arise due to late filing. You can pay these fees online through the MCA portal.
• Seek Professional Help: Consider consulting a Company Secretary or legal advisor to ensure compliance with all statutory requirements and to avoid further penalties.

Additionally, under Section 403 of the Companies Act, you may apply for condonation of delay to the Registrar, which may allow you to avoid penalties if justified. Ensure to provide a reasonable explanation for the delay in filing.

Regularising your annual return filings is crucial for maintaining your company's good standing and avoiding further legal complications.