My company in Tumkur 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 Tumkur 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 specific steps.

Under the Companies Act, 2013, particularly Section 92 and Section 137, every company is mandated to file its annual return and financial statements respectively. The failure to comply with these requirements can lead to significant penalties.

• Penalties for Non-Compliance:
  • Section 92(5): If a company fails to file its annual return, it can be subject to a penalty of INR 50,000, and in case of continuing default, an additional penalty of INR 1,000 for each day during which the default continues.
  • Section 137(3): If a company fails to file its financial statements, a similar penalty structure applies, with a fine of INR 1 lakh, and in case of continuing default, an additional fine of INR 5,000 for each day of default.
  • Section 448: If any return, report, certificate, financial statement, or other documents are filed with false information, the company can face imprisonment up to six months and/or a fine up to INR 1 lakh.

To regularize the filing of annual returns and financial statements, follow these steps:

• Gather Necessary Documents:
  • Annual returns for the past two years.
  • Financial statements for the respective years.
  • Form MGT-7 for annual return and Form AOC-4 for financial statements.
• Prepare Forms:
  • Ensure all forms are correctly filled with accurate information.
  • Make use of the e-filing portal of the Ministry of Corporate Affairs (MCA).
• Pay Applicable Penalties:
  • Calculate and pay any penalties due for the late filing as prescribed under the Companies Act.
• File Returns:
  • Submit the forms online through the MCA website by selecting the appropriate filing options.
  • Keep a record of the acknowledgment of the filings for future reference.
• Regular Compliance:
  • Ensure timely filing of annual returns and financial statements in the future to avoid penalties.

By taking these steps, your company can rectify the non-compliance and avoid further legal complications under the Companies Act, 2013.