My company in Varanasi 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 Varanasi has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. To regularise the filing, you need to follow specific steps outlined in the Act.

Under Section 92 of the Companies Act, 2013, every company is required to file its annual return with the Registrar of Companies (RoC). Failure to do so attracts penalties. The following key points highlight the penalties and the process to regularise the filings:

• Penalties for Non-Filing:
  • As per Section 92(5), a company that fails to file its annual return shall be liable to a penalty of INR 50,000.
  • Additionally, every officer of the company who is in default may also face a fine of INR 5,000 for each day of continuing default, subject to a maximum of INR 1,00,000.
  • Under Section 137, if the financial statements are not filed, the company may incur further penalties.
• Steps to Regularise Filing:
  • Gather all necessary documents including the financial statements, directors' report, and any other required information as per the Companies Act.
  • Prepare the annual return in Form MGT-7 and the financial statements in Form AOC-4.
  • File the overdue annual return and financial statements with the RoC through the Ministry of Corporate Affairs (MCA) portal.
  • Pay the applicable late fee as prescribed under the Companies (Registration Offices and Fees) Rules, 2014. The late fee can range from INR 100 to INR 1,000 for each day of delay depending on the type of company.
  • If the filing is significantly delayed, consider applying for a condonation of delay under Section 460 of the Companies Act, which allows the Central Government to condone the delay if justified.
• Additional Considerations:
  • Ensure that all compliance requirements are met to avoid further penalties.
  • Consult with a company secretary or legal advisor for guidance on the filing process and to ensure compliance with all legal obligations.

Regularising your company’s annual return filing is crucial to maintaining good standing and avoiding additional legal complications. It is advisable to complete these filings as soon as possible.