My company in Srinagar 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 Srinagar has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013, and can regularize the filing by following a specific process.

According to the Companies Act, 2013, the annual return must be filed by all companies registered in India. The key provisions related to the penalties for non-compliance and the process for regularization are as follows:

• Penalties for Non-Filing:
  • Section 92(5) of the Companies Act, 2013 states that if a company fails to file its annual return, it is liable to pay a penalty of ₹100 for each day of default, subject to a maximum of ₹5 lakh.
  • Additionally, the officers of the company in default are also liable for penalties under Section 92(6), which may include imprisonment for a term that may extend to six months or a fine that may extend to ₹1 lakh, with a further fine of ₹5,000 for each day of continuing default.
• Regularizing the Filing:
  • Prepare the pending annual return for the financial years that have not been filed. This includes gathering the necessary financial statements and details as per Section 92(1).
  • File the annual return using the prescribed form (Form MGT-7) along with the annual financial statements (Form AOC-4) through the Ministry of Corporate Affairs (MCA) portal.
  • If the delay exceeds 30 days, you will need to file for condonation of delay. This can be done by submitting an application to the Registrar of Companies (RoC) along with the prescribed fees and justifications for the delay.
  • Pay the applicable late fees as prescribed in the Companies (Registration Offices and Fees) Rules, 2014, which is ₹100 per day for the delay in filing.
  • Ensure that all filings are completed and the penalties are settled to avoid further legal complications.

It is advisable to seek assistance from a company secretary or legal advisor to ensure compliance and to navigate the filing process efficiently. Regularizing the filing as soon as possible will help mitigate penalties and restore good standing for your company.