My company in Salem 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 Salem has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. To regularize the filing, you must take specific steps to comply with regulatory requirements.

Under the Companies Act, 2013, failure to file annual returns is subject to penalties as outlined below:

• Section 92(5): A company that fails to file its annual return is liable to pay a fine which may go up to ₹10,000. Additionally, if the default continues, there is a further fine of ₹1,000 for each day of default.
• Section 137(3): Non-filing of financial statements can attract similar penalties, with a fine of ₹1 lakh and an additional fine of ₹5,000 for each day of default.
• Section 403: If any company fails to file any document required to be filed under the Act, it shall be liable to pay a penalty as prescribed for late filing under the Companies (Registration Offices and Fees) Rules, 2014.

To regularize your annual return filings, follow these steps:

• Gather Required Documents: Prepare all necessary documents including the company's balance sheet, profit and loss account, and director's report for the relevant financial years.
• File with Registrar of Companies (RoC): Submit the pending annual returns using Form MGT-7 along with the financial statements in Form AOC-4 to the RoC.
• Pay Penalties: Ensure payment of applicable penalties for late filing as stipulated under the Companies Act. This can be done through the MCA21 portal.
• Obtain Approval from Board: The board of directors should approve the financial statements and annual returns before filing to ensure compliance.
• Consider Form GNL-1: If the delay is substantial, consider filing a form for condonation of delay (Form GNL-1) to seek approval from the RoC, which could mitigate penalties.
• Consult a Professional: It is advisable to engage a company secretary or legal professional to assist with the filing process and ensure compliance with all legal requirements.

Regularizing your company's filings is crucial to avoid further penalties and maintain good standing with regulatory authorities.