My company in Kota 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 Kota has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. Regularising the filing requires following specific steps to comply with legal requirements.

According to the Companies Act, 2013, particularly Section 92, every company is required to file its annual return within 60 days of holding its Annual General Meeting (AGM). Failure to do so can result in penalties for both the company and its officers. The penalties are as follows:

• Under Section 92(5), the company may incur a fine of ₹50,000, and for continuing defaults, a further fine of ₹1,000 for each day during which the default continues.
• Under Section 137(3), if a company fails to file its financial statements, it may face similar penalties of ₹100,000, with an additional ₹5,000 for each day of continuing default.
• Additionally, the officers in default can also be fined up to ₹5,000 for each day of default.

To regularise the filing of the annual return and avoid further penalties, follow these steps:

• Prepare the Annual Return: Gather all necessary information, including details of the company's registered office, principal business activities, particulars of its holding, subsidiary and associate companies, and details of its share capital and debt.
• File the Annual Return: Use the prescribed form (Form MGT-7) on the Ministry of Corporate Affairs (MCA) website. Ensure compliance with the format and details as required under the Companies Act.
• Pay the Penalty Fee: Along with the filing, calculate and pay any penalties incurred for the delay. This payment can be made through the MCA portal using the prescribed fee structure.
• Obtain Certification: After filing, obtain confirmation of filing from the MCA. This acts as proof of compliance and can be useful for future references.
• Consider Professional Help: If complexities arise, it may be prudent to engage a Chartered Accountant or Company Secretary to assist with the filing and ensure all compliance requirements are met.

By following these steps and adhering to the provisions of the Companies Act, 2013, you can effectively regularise your annual return filing and mitigate penalties. It is advisable to maintain compliance moving forward to avoid similar issues in the future.