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January 4, 2021

Companies & LLP who have missed filing annual returns have to pay Additional fees post 1st Jan, 2021

by CA Shivam Jaiswal in Circular and Notifications, MCA Circular

Companies & LLP who have missed filing annual returns have to pay Additional fees post 1st Jan, 2021

Adhering to the compliance proposed by the Indian government is mandatory for entities in India. The Ministry of Corporate Affairs (MCA) is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the corporate sector in accordance with law. The MCA has a number of compliances that are to be mandatorily followed by entities.

Non-compliance with these rules and regulation may result in imposing of heavy penalties by the government for the entities in India. MCA compliances have been difficult especially in the COVID period where importance for foremost given to human health and safety.

What is the due date of filing Annual Return with the ROC?

  • The Annual Return gives a synoptic view of the organizational structure, functions and activities of the entity undertaken during the previous financial year. All companies (private limited company, one-person company, limited company, section 8 company, etc) are required to file an annual return with the MCA every year.
  • Every company shall file with the ROC a copy of the annual return, within 60 days from the date on which the annual general meeting is held.
  • If no annual general meeting is held in any year, then the said return has to be filed within 60 days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed
  • The due date of holding the AGM was extended till 31st December, 2020 for FY 2019-20.

No extension in late fee structure

Even though there was extension provided in conducting the AGM, it is crucial to note that there was no change in the additional fee logic of forms MGT-7 and AOC-4 for FY 2019-20

MGT-7 is an electronic form provided by the Ministry of Corporate affairs to all the corporates in order to fill their annual return details. This e-form is maintained by the Registrar of Companies via electronic mode and on basis of the statement of correctness given by the company. MGT – 7 is to be submitted within 60 days from the conclusion of AGM

AOC-4 is for filing the company’s financial statement for every financial year with the Registrar of Companies. Hence, Form AOC-4 is submitted with the MCA for each Financial Year within 30 days of a company’s annual general meeting (In case of OPC within 180 days from the close of the financial year).

The late fee for filing MGT-7 and AOC-4 is Rs 100 per day till the date of filing. It is now been clarified that the extension is provided to all companies for conducting the AGM and not for filing the respective forms.

All the due dates of form filing shall be computed based on the actual date of AGM or due date / extended due date as the case may be. Therefore, from 31st December, 2021, additional fee shall be applicable from the actual date of AGM or due date / extended due date as the case may be i.e., Rs 100 shall be charged starting from such day, even if this date falls before 31st December, 2020.

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