My company in Shimla has not filed its annual return for the last two years; what penalties apply and how can I regularise the filing?
TA Asked by Tariq Anwar from India
Quick Answer
If your company in Shimla has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013, and can regularize its filings by following specific steps. 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 its annual general meeting (AGM).
Detailed Legal Analysis
If your company in Shimla has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013, and can regularize its filings by following specific steps.
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 its annual general meeting (AGM). Failure to do so can result in penalties as outlined in Section 92(5) and Section 137(3) of the Act.
- For a company, the penalty for not filing the annual return can be:
- Minimum fine of ₹1 lakh which may extend to ₹5 lakh.
- Additionally, the company may face a fine of ₹100 per day for each day of default.
- The officers in default (such as directors) may also face a penalty of ₹25,000 to ₹1 lakh, along with a daily fine of ₹100 for continued default.
To regularize the filing of your company’s annual return, follow these steps:
- Prepare Financial Statements: Ensure that your financial statements for the past two years are prepared and audited, as these documents will need to be included with your annual return.
- File Pending Returns: Use the relevant forms (Form MGT-7 for annual return and Form AOC-4 for financial statements) to file the pending returns with the Registrar of Companies (RoC).
- Pay Penalties: Be prepared to pay the applicable penalties for late filing as mentioned above. The penalties can be calculated based on the number of days the filing is delayed.
- File Online: Log in to the Ministry of Corporate Affairs (MCA) portal and file the required forms online.
- Seek Professional Help: It may be beneficial to consult with a company secretary or legal advisor to ensure compliance and to help navigate any complexities in the filing process.
Regularizing your filings not only helps in avoiding further penalties but also ensures compliance with the statutory requirements under the Companies Act, 2013.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.