Staying up-to-date with the latest rules and regulations is crucial for any business operating in India. Do you know that all companies registered in India are required to file Form MGT 7 annually? This form serves as the company’s annual return and provides important information about the company’s activities and financial performance throughout the year. The Ministry of Corporate Affairs has made it mandatory for all companies to file their annual returns using Form MGT 7, which is an electronic form provided to corporations.
The Purpose of this e-form is to capture essential details about the company’s activities and financial performance over the year. The Registrar of Companies maintains this form in an electronic mode based on the information provided by the company. The company is responsible for ensuring the accuracy and completeness of the information provided in Form MGT-7, and the Registrar of Companies relies on the company’s statement of correctness to maintain accurate records.
Who needs to file the form MGT 7?
Every company registered in India, whether it is a public or private company, is required to file Form MGT-7 annually. The newly introduced One Person Company (OPC), introduced in the Finance Act 2021, must also file its annual return using Form MGT-7. The company uses this form to fulfil its obligation of filing the annual return with the Registrar of Companies. By filing Form MGT-7, companies can ensure compliance with the regulations and provide the government with the necessary information to monitor and regulate their activities.
What are the consequences of non-filing the form?
In 2018, the penalty for failing to file an annual return was significantly increased to Rs. 100 (Rupees Hundred) per day of default. This makes it crucial for companies to ensure that they file their annual return using Form MGT-7 before the due date to avoid incurring hefty penalties. Timely filing of the annual return helps avoid financial penalties and ensures that the company remains compliant with the regulations and maintains a good reputation with the government authorities. Therefore, companies need to prioritise the filing of Form MGT-7 and ensure that it is filed within the stipulated time frame to avoid adverse consequences.
Purpose of filing Form MGT 7
Form MGT-7 is a crucial document that every company in India must prepare annually. It includes vital details about the company, such as the registered office, principal business activities, and holding subsidiary and associate companies. The form also contains information about shares, debentures, indebtedness, and alterations made since the previous financial year.
Additionally, Form MGT-7 includes information about promoters, directors, and key managerial personnel, meetings of members or a class thereof, and remuneration of directors. Form MGT 7 also includes details of any penalty or punishment imposed on the company, its directors, or its officers.
Attachment necessary to file the form MGT 7
The Form MGT-7 can be filed electronically by attaching scanned copies of the required documents under the attachments head at the end of the form. The document details consist of the list of shareholders and debenture holders and an approval letter for extension of the Annual General Meeting (AGM), if applicable, a Copy of MGT-8, and Optional attachments, if any.
The due date for filing the form MGT 7
The due date for filing Form MGT-7 is 60 days from the date of the Annual General Meeting; the due date depends on the company’s financial year end. The AGM must be held within six months from the end of the financial year, which means that companies with a financial year-end of March 31st must hold their AGM by September 30th. For these companies, the due date for filing Form MGT-7 would be November 29th.
As per section 92 of the Companies Act 2013, every company, including small companies, must submit Form MGT 7. Suppose the company fails to submit form MGT 7 for the last two years; they can file for both previous and present years by paying additional fees. To know more about the form MGT 7 filing, join Finprov’s MCA Compliances MGT 7 Form Filing course, which will help you to get detailed knowledge. This course covers the concepts of Form MGT 7, the Purpose of the form, Due dates and penalties, Statutory requirements, and How to file the form MGT 7.
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