Sanchit Kumar

Q. Relevant provision of the companies act?

  • As per companies act, 1956 sec 621A was applicable for compounding of offences and as per companies act, 2013 section 441 is applicable.

Q. Which offences can be compounded?

Nothwithstanding anything contained in the Code Of Criminal Procedure Code,1973

  • Only offences punishable under this act (i.e. companies act) WITH FINE ONLY can be compounded.
  • Offences punishable with Fine or imprisonment Or Fine or imprisonment or both Compoundable with permission of Court

  • Offences punishable with imprisonment only are not Compoundable.    

Q. With whom the application for compounding is to be made?

  • If the amount of fine levied is upto (i.e. <=) Rs.5 lakh, then application to be filed to

Regional Director


Officer Authorized by CG

  • If amount of fine levied is more than Rs. 5 lakh, then application to Tribunal

Every application to be filed to REGISTRAR who shall forward the same to:



Regional director


Officer authorized by CG

Q. Which form is to be filed to ROC along with the attachments and fees required to be paid?

Form GNL-1 has to be filed with ROC along with the following attachments:

  • Board resolution passed for making an application.
  • Detailed application*
  • Copy of notice received from ROC

*here detailed application means and includes the following:

  • General profile and history of the company.
  • Facts of the case i.e. nature of offence and period of default.
  • How and when the Default is made good.
  • Prayer to the competent authority for compounding.

Fees to be submitted:

Company having share capital Amount (Rs.)
Less than 100,000 200
100,000 to 499,999 300
500,000 to 24,99,999 400
25,00,000 to 99,99,999 500
100,00,000 or more 600
Company having no share capital Rs. 200 per document


Q. What after compounding?

  • After compounding of offence, intimation to ROC has to be made within 7 days in form no GNL-2.


  1. If compounding of offence has been made, no prosecution for the same offence can be made by any person(i.e. registrar/ shareholder/any person authorized by CG)
  2. If compounding of offence is made after the institution of any prosecution, such compounding shall be brought by the registrar in writing to the notice of the court in which the prosecution is pending and on such notice, the company or its officer in relation to whom the offence is so compounded shall be discharged.
  3. No compounding if the same offence is committed within 3yrs by company or officer in default. (prohibition is for the 2nd offence committed within 3yrs)
  4. If the offence is committed after 3yrs by the same company or officer in default it can be compounded.
  5. If default is made in filling any account/return/document the Tribunal/regional director /any officer authorized by CG as the case may be , if he thinks fit to do so, on payment of fee or/and additional fee may direct to file or register within such time as may be specified in the order and if such account/return/document is not filed within such specified time, any officer or other employee of the company shall be punishable with imprisonment for upto 6 months or with fine upto 1 lakh rupees or both

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Category : Company Law (4195)
Type : Articles (18536)
Tags : Companies Act (2652) Companies Act 2013 (2423) FAQs (524)

0 responses to “FAQs about Compounding of Offences- Companies Act, 2013”

  1. P. Vithal Kumar says:

    is it necessary to file Form RD-1 or RD-2?

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