My company in Indore 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 Indore has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. Regularising the filing is essential to avoid further complications and penalties.

Under the Companies Act, 2013, the failure to file an annual return is governed by the following provisions:

• Section 92: Every company is required to file an annual return with the Registrar of Companies (RoC) within 60 days from the date of the annual general meeting (AGM).
• Section 137: This section mandates the filing of financial statements, which should accompany the annual return.
• Penalties: If a company fails to file its annual return, it may incur penalties, which include:
• A fine of ₹50,000 for the company and ₹1,000 per day for continuing default, subject to a maximum of ₹2,00,000.
• Additional penalties for officers in default, which can lead to fines and potential imprisonment.

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

• Prepare Financial Statements: Ensure that the financial statements for the relevant years are prepared and audited (if applicable).
• Conduct an AGM: Hold the Annual General Meeting (AGM) to discuss and approve the financial statements, if this has not been done.
• File Annual Return: Submit the annual return (Form MGT-7) and financial statements (Form AOC-4) to the RoC online through the Ministry of Corporate Affairs (MCA) portal.
• Pay Penalties: Be prepared to pay the applicable penalties for the delay in filing.
• File for Compounding (if necessary): If penalties are substantial, consider filing for compounding of offences under Section 441 of the Companies Act, 2013.

It is advisable to consult with a company secretary or a legal professional to navigate the filing process and ensure compliance with all legal requirements. This can help mitigate penalties and prevent any further legal issues.