My company in Gwalior 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 Gwalior has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. Regularising the filing can be achieved through specific steps outlined in the law.

According to the Companies Act, 2013, particularly under Section 92 and Section 137, every company is mandated to file its annual return and financial statements with the Registrar of Companies (RoC) within prescribed timelines. Failure to comply with these requirements can attract penalties as follows:

• Penalty for Non-Compliance: Under Section 92(5), a company that fails to file its annual return shall be liable to a penalty of INR 50,000, and in case of continuing default, a further penalty of INR 1,000 per day during the continuance of such failure.
• Penalty for Non-Filing of Financial Statements: Under Section 137(3), if a company fails to file its financial statements, it can face a penalty of INR 1 lakh, which may extend to INR 5 lakhs, along with a daily fine of INR 5,000 for continued failure.

To regularise your company's filing, you can follow these steps:

• Assess the Situation: Determine the exact status of your filings and identify the specific returns that have not been filed.
• Prepare the Necessary Documents: Gather all required documents for the annual return and financial statements, including balance sheets and profit & loss accounts.
• File the Returns: You can file the overdue annual return using the prescribed e-filing forms available on the Ministry of Corporate Affairs (MCA) website, such as Form MGT-7 for the annual return and Form AOC-4 for financial statements.
• Pay the Penalties: Be prepared to pay any penalties applicable for late filing. This can be done during the filing process on the MCA portal.
• Seek Professional Assistance: Consider engaging a company secretary or a legal professional who specializes in corporate law to ensure compliance and handle any complexities.
• Keep Records: Maintain copies of all filings and correspondence with the RoC for future reference.

Regularising your filings will help your company avoid further penalties and legal complications while ensuring compliance with the Companies Act, 2013.