My company in Kharagpur 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 Kharagpur has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. To regularise the filing, you need to adhere to specific steps and comply with the provisions set forth by the law.

According to Section 92 of the Companies Act, 2013, every company is required to file its annual return within 60 days from the date of the Annual General Meeting (AGM). Failure to do so can lead to several repercussions:

• Penalties for Delayed Filing: Under Section 92(5), if a company fails to file its annual return, it can be fined up to ₹1 lakh, and in case of continuing default, an additional fine of ₹5,000 per day may be levied until the default continues.
• Additional Compliance: If the company is a listed company or a company governed by any other specific regulations, additional penalties may also apply as per the respective laws.

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

• Prepare and Audit Financial Statements: Ensure that the financial statements for the last two financial years are prepared and audited as per the provisions of the Companies Act and relevant accounting standards.
• Hold AGM: Conduct the Annual General Meeting for the respective years, if not already done, to approve the financial statements and any other matters that need shareholder approval.
• File Annual Returns: File the annual return (Form MGT-7) along with the financial statements (Form AOC-4) on the Ministry of Corporate Affairs (MCA) portal.
• Pay Penalties: Be prepared to pay the applicable penalties along with the filing fees. The fees are dependent on the amount of paid-up capital and the duration of the delay.
• Regularisation Scheme: Check if there is any ongoing condonation of delay scheme by the MCA that may help in waiving off some penalties.

Additionally, you may consider consulting a company secretary or legal professional specializing in corporate law to ensure full compliance and to navigate any complexities that might arise during the process. Regularising your filings will not only help avoid further penalties but also maintain your company’s good standing with regulatory authorities.