Consequence of Non Filing of Annual Returns with ROC

All the Companies incorporated under the Companies Act 1956 or Companies Act 2013, are required to file the  annual returns i.e. AOC-4, MGT-7/MGT-7A , MGT-14 to ROC (Registrar of Companies ) and ITR to  Income tax Departments for every financial year.

Timeline for filing of annual returns in every financial year:-

1. AOC-4:- Every Company has to file form AOC-4 along with a copy of the financial statements, including consolidated financial statement, notice of AGM and Director Report with the Registrar within 30 days of the date of AGM (AGM date 30 September except first AGM) with normal fees.

2. MGT-7/MGT-7A:- Every Company has to file its annual returns in form MGT-7/MGT-7A with the Registrar within 60 days of the date of AGM (AGM date 30 September except first AGM) with normal fees.

3. MGT-14:- As Per Section 179(3) clause g, Every public Company is required to file form MGT-14 for adoption and approval of financial statements and Board Report within period of 30 days from the date of passing of Resolution.

Consequences of not filing of annual returns on Company:- If any company does not file annual returns timely then company have to pay additional fees of Rs. 100 per day per form for filing annual returns after due date. And if Company continuously does not file annual returns for period of 2 financial years and has not made any application within such period for obtaining the status of a dormant company, then Registrar may issue the notice to company for striking off (closure) of company.

Consequences of not filing of annual returns on Directors:- If Company does not file annual returns for any continuous period of three financial years; then directors of said company shall become disqualified for continuous period of 5 years, and they would not be eligible to be appointed, re-appointed as directors in other company.

Solution:- If company have business transactions and wants to expand its business then company should files all returns timely to be compliant, and if in some circumstances company could not file returns timely then company can file its returns with additional fees of Rs. 100 per day, even after receiving of notice from Registrar, company can file its returns after filing of representation of notice to Registrar.

And if company could not filed its returns because company did not have any business and even could  not commenced its business then company should apply for striking off of company without filing of any return in form STK-2 before issuance of notice from Registrar to avoid disqualification of director and other legal action from ROC.

Disclaimer:- The entire contents of this document have been prepared on the basis of relevant provisions and rules and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.