My company in New Delhi 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 New Delhi has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013, and you can regularize the filing by following specific procedures set forth in the law.

Under the Companies Act, 2013, particularly Section 92 and Section 137, every company is required to file its annual return and financial statements respectively within a stipulated time. The penalties for non-compliance are as follows:

• Penalties for Non-filing:
  • Under Section 92(5), a company that fails to file its annual return shall be liable to a penalty of Rs. 1,00,000, and in case of continuing default, a further penalty of Rs. 5,000 for each day during which such default continues.
  • Under Section 137(3), if a company fails to file its financial statements, it can incur a penalty of Rs. 1,00,000, and for continuing defaults, an additional Rs. 5,000 per day.

To regularize the filing of your annual return and financial statements, you can take the following steps:

• Prepare the Documents:
  • Ensure that all necessary documents, including the annual return and financial statements, are accurately prepared and signed by the authorized persons.
• File with the Registrar of Companies (RoC):
  • Submit the annual return in Form MGT-7 and the financial statements in Form AOC-4 via the Ministry of Corporate Affairs (MCA) portal.
• Pay the Penalty:
  • Upon filing, you must also pay the applicable penalties for the period of non-compliance as computed by the RoC.
• Seek Additional Relief:
  • If the penalties are substantial or if you encounter any issues, consider seeking the relief provisions under Section 460 of the Companies Act, which allows for a waiver of penalties in certain circumstances.

It is advisable to consult with a legal professional or a company secretary to ensure compliance with all legal requirements and to manage the filing process effectively.