My company in Bokaro 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 Bokaro 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 must take specific steps to ensure compliance with the law.

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 lead to significant penalties.

• Penalties for Non-Compliance:
  • Under Section 92(5), a company that fails to file its annual return shall be liable to a penalty of ₹1 lakh, which can increase by ₹5,000 for each day of continuing default.
  • Every officer of the company who is in default shall also be liable to the same penalty as the company under Section 92(6).

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

• Prepare Financial Statements: Ensure that you have prepared the financial statements for the years for which the returns were not filed. This includes the balance sheet, profit and loss account, and director's report as per Section 134 of the Companies Act, 2013.
• Hold Annual General Meetings (AGMs): If you have not held AGMs for those years, you must conduct them to approve the financial statements. Section 96 mandates that AGMs should be held within six months from the end of the financial year.
• File Annual Returns: Once the AGMs are held, file the annual return in Form MGT-7 and the financial statements in Form AOC-4 with the RoC. Ensure that these documents are filed within the stipulated time frame following the AGM.
• Pay Penalties: Be prepared to pay any applicable penalties for late filing as mentioned above. You can calculate the total penalty based on the duration of the delay and make the payment while filing.
• Seek Professional Help: If necessary, consult a company secretary or legal advisor to assist with the filing process and to ensure all legal requirements are met.

By following these steps, your company can regularize its annual return filings and minimize the penalties incurred due to non-compliance with the Companies Act, 2013.