My company in Rajkot 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 Rajkot has not filed its annual return for the last two years, it is subject to penalties under the Companies Act, 2013, and you can regularize the filing by following specific steps.

According to the Companies Act, 2013, every company is required to file its annual return within a prescribed period. The consequences of failing to do so include both financial penalties and potential restrictions on company operations.

Here are the key points regarding penalties for non-filing of annual returns:

• The penalty for not filing the annual return under Section 92(5) of the Companies Act, 2013 is INR 100 for each day of default, subject to a maximum of INR 10 lakh.
• Additionally, the company and every officer in default may also be liable to a fine that may extend to INR 5,000 for each day during which the default continues, as per Section 92(6).
• In cases where the annual return is not filed at all, the Registrar of Companies (RoC) may initiate proceedings against the company, leading to further complications.

To regularize the filing of your annual returns, you can follow these steps:

• Prepare Required Documents: Gather the necessary documents including financial statements, director's report, and previous annual returns.
• File Outstanding Returns: Log in to the Ministry of Corporate Affairs (MCA) portal and file the outstanding annual returns using Form MGT-7 along with the financial statements in Form AOC-4.
• Pay Penalties: Calculate and pay the applicable late filing fees on the MCA portal while submitting the forms.
• Seek Approval if Needed: If the delay is significant, consider obtaining a condonation of delay from the Registrar under Section 460 of the Companies Act, 2013.
• Maintain Compliance: Ensure that future annual returns are filed within the stipulated time frame to avoid penalties.

It is advisable to consult a company secretary or legal professional to guide you through the process and ensure compliance with all legal requirements.