My company in Jammu 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 Jammu has not filed its annual return for the last two years, it is subject to penalties under the Companies Act, 2013. To regularise the filing, you need to take specific steps to ensure compliance with the law.

Under the Companies Act, 2013, annual returns must be filed in accordance with Section 92. Failure to do so can result in penalties. The key points regarding penalties and the process to regularise your filings are as follows:

• Penalties for Non-filing:
  • As per Section 92(5) of the Companies Act, 2013, if a company fails to file its annual return, it may face a penalty of up to ₹1 lakh.
  • Additionally, there is a fine of ₹5,000 for each day of continuing default, which may extend to a maximum of ₹5 lakh.
  • Directors of the company may also be liable for penalties under Section 92(6).
• Steps to Regularise Filing:
  • Prepare the Annual Return: Gather all necessary information and prepare the annual return for the last two financial years as per the relevant format prescribed in the Companies (Management and Administration) Rules, 2014.
  • File with the Registrar: Submit the annual return along with the necessary forms (Form MGT-7) to the Registrar of Companies (ROC) within the stipulated time. Ensure that you file for both years.
  • Pay the Penalty: Upon filing, be prepared to pay the requisite penalties as calculated based on the duration of the delay.
  • Additional Compliance: You may also need to file Form GNL-1 for the overdue filings and possibly seek condonation of delay, if applicable, under Section 403 of the Companies Act, 2013.
  • Seek Professional Assistance: It is advisable to consult a company secretary or legal advisor for guidance throughout the process to ensure compliance with all requirements.

By following these steps and ensuring timely compliance moving forward, your company can avoid further penalties and legal complications under the Companies Act, 2013.