Penalty for late filing or failure to file Company’s annual return – Form MGT7

Company’s annual return is to be filed with registrar of companies within 60 days from the date of annual general meeting. Where annual general meeting has not been held for the year then within 60 days from the date on which AGM should have been held.

Read: Detail provision on time limit for filing company’s annual return

In this article, we will discuss normal fees that every company is required to pay while filing annual return in form MGT7 with registrar of companies and penalty that gets attracted in case of delay in filing or failure to file company’s annual return. From financial year 2014-2015 onwards, form MGT7 has to be filed in place of form 20B.

penalty for not filling or failure to file company annual return

Normal fee to be paid for filing company’s annual return

Normal filing fee is required to be paid by every company while filing company’s annual return. Normal fee gets calculated based on company’s authorized capital. If your company’s authorized capital is 1000000 rupees then normal fee to be paid while filing annual return for your company is Rs. 400.

Similarly, you can calculate normal fee applicable to you based on your authorized capital as per below table;

Nominal share capital of the company Normal Fee to be paid for filing annual return i.e. form MGT7 (Amount in Rs.)
Less than Rs. 1 lakh 200
Rs. 100000 to Rs. 499999 300
Rs. 500000 to Rs. 2499999 400
Rs. 2500000 to Rs. 9999999 500
Rs. 10000000 or more 600

Additional fees to be paid for filing of company’s annual return

Additional fee gets attracted when company has crossed the due date of filing i.e. 60 days from the date of AGM and when AGM not held then 60 days from the date when AGM should have been held.

Additional fee is to be paid in addition to normal fee and gets calculated based on the days of delay and normal fees applicable.

Period of delay Additional fee or penalty for late filing annual return or form MGT7
Delay up to 30 days 2 times of normal fee
More than 30 days and up to 60 days 4 times of normal fee
More than 60 days and up to 90 days 6 times of normal fees
More than 90 days and up to 180 days 10 times of normal fees
More than 180 days 12 times of normal fees

Penalty in addition to additional and normal fee for filing annual return

Like any other penalty provision, not filing or late filing of company’s annual return also attracts additional penalty and late payment fee. Such penalty provision is specified in section 92(5) of Companies Act, 2013.

As per section 92(5) of Companies Act 2013, if a company fails to file its annual return under sub-section (4), before the expiry of the period (270 days from the date by which it should have been filed) specified under section 403 with additional fee then the company shall be punishable with fine which shall not be less than 50,000 rupees but which may extend to 5 lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to 6 months or with fine which shall not be less than 50,000 rupees but which may extend to 5,00,000 rupees or with both.

Section 92(6) of Companies Act 2013 specified penalty for company secretary for non compliance to section 92 of Companies Act 2013. As per this sub section, if a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made thereunder, he shall be punishable with fine which shall not be less than 50,000 rupees but which may extend to 5 lakh rupees.

4 thoughts on “Penalty for late filing or failure to file Company’s annual return – Form MGT7

  1. MANOJ

    if company has not taken the status of Dormant company then it has to file the same.
    (please note that in CA2013 has provisions for Dormant companies seperately)

    Reply
  2. Prashant Bohra

    Company has been incorporated in September 2012, and since then the company has not filed its Annual Returns. Should the Company go for Compounding of Offence?
    Please reply. Thanks in advance.

    Reply

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