There are drastic changes in the provisions of filing of e-forms and documents with the Registrar after the introduction of the Companies Amendment Act, 2017 and the Companies Amendment Ordinance Act, 2018. . Earlier, Section 403 of the Companies Act, 2013 prescribed 270 days timeline within which any document can be filled with the Registrar with additional fees. CAA, 2017 amended Section 403 and timeline of 270 days has been removed. Now, you have to file any statutory document within the time mentioned in relevant section for e.g AOC-4 within 30 days of AGM, MGT-7 within 60 days of AGM and like. After the expiry of the time given in relevant section you can file document with an additional fees as mentioned in Section 403 and also need to pay penalty if you receive show case notice from the Registrar.
Let us know understand timeline and consequences of non filing or late filing of any statutory document with the Registrar of Companies.
Filing of financial statements in AOC-4 (Section 137)
Every Company has to file a copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be attached to such financial statements, with the Registrar within 30 days of the date of AGM in form AO4-4 with normal fees.
What if Company fails to file AOC-4 within 30 days of AGM?
If a company fails to file the copy of the financial statements within 30 days from the date of AGM, Company can file AOC-4 after 30 days of AGM but after the payment of additional fees of Rs.100/- each per day.
What is the penalty amount of delay of filing AOC-4?
If you failed to file financial statement within 30 days, Company and Every Director are liable for following amount of Penalty:
The company shall be liable to a penalty of Rs. 1,000/- for every day during which the failure continues but which shall not be more than Rs. 10,00,000/- and
The managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be liable to a penalty of Rs. 1,00,000/- and in case of continuing failure, with further penalty of Rs. 1,000/- for each day after the first during which such failure continues, subject to a maximum of Rs.5,00,000/-.
Filing of Annual Return in MGT-7 [Section 92(4)]
Every company shall file with the Registrar a copy of the annual return in form MGT-7, within 60 days from the date of AGM with normal fees.
What if Company fails to file MGT-7 within 60 days of AGM?
If a company fails to file the copy of the Annual Return within 60 days from the date of AGM, Company can file MGT-7 after 60 days of AGM but after the payment of additional fees of Rs.100/- each per day.
What is the penalty amount of delay of filing MGT-7?
If a company fails to file the copy of the Annual Return within 60 days from the date of AGM, Company and Every Director are liable for following amount of Penalty:
Company and its every officer who is in default shall be liable to a penalty of Rs. 50,000/- and in case of continuing failure, with further penalty of Rs. 100/- for each day during which such failure continues, subject to a maximum of Rs. 5,00,000/-.
In both of the above cases, penalty is required to be paid only if you receive notice from Registrar and it is levied after due adjudication by adjudicating officer otherwise additional fees @ Rs.100/- per day is sufficient.
Effect of Non filing of AOC-4 and MGT-7 on Company?
Where a company is not carrying on any business or operation for a period of 2 immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455, Registrar shall send a notice to the company and all the directors of the company of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of the relevant documents, if any, within a period of 30 days from the date of the notice. [Section 248(1)(C)]
ROC will assume that your business is closed because you have not filled AOC-4 and MGT-7 for continuous period of 2 years so he will send notice stating his intention to strike off your company. After providing reasonable opportunity of being heard, he will strike off your company.
Effect of Non filing of AOC-4 and MGT-7 on Directors?
No person who is or has been a director of a company which has not filed financial statements or annual returns for any continuous period of 3 financial years, shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of 5 years from the date on which the said company fails to do so. [Section 164(2)]
It means if your Company has not filled AOC-4 and MGT-7 for continuous period of 3 years, Directors of the companies are disqualified to be re-appointed in that Company or appointed in another companies for 5 years.