My company in Visakhapatnam 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 Visakhapatnam has not filed its annual return for the last two years, it may face penalties under the Companies Act, 2013. The penalties can vary depending on the duration of the default and the nature of the company.

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 the annual general meeting (AGM). If a company fails to do so, it may incur the following penalties:

• The company and every officer in default may be liable to a penalty of up to INR 1 lakh, with an additional fine of INR 5,000 for each day of continuing default as per Section 92(5).
• If the default continues for more than a year, the penalty can increase significantly. The maximum penalty can go up to INR 5 lakh for the company and INR 1 lakh for the officers in default, as per Section 447.

To regularize the filing of annual returns, you can follow these steps:

• Prepare the Financial Statements: Ensure that the financial statements for the respective financial years are accurate and complete.
• Hold an Annual General Meeting (AGM): If not already done, convene an AGM to approve the financial statements and to discuss other necessary matters.
• File the Annual Returns: Use the Form MGT-7 to file the annual return with the Registrar of Companies (RoC). This form includes details about the company, its shareholders, and directors.
• Pay the Penalties: Be prepared to pay the applicable penalties for late filing at the time of submission of the annual return.
• File with Additional Fees: If the return is filed after the due date, additional fees as prescribed under the Companies (Registration Offices and Fees) Rules, 2014, will apply.
• Seek Professional Help: Consider hiring a company secretary or legal professional to ensure compliance with all requirements and to assist in addressing any legal implications.

Regularizing the filing of annual returns is crucial to avoid further penalties and potential legal complications. It is advisable to take prompt action to ensure compliance with the Companies Act, 2013.