Filing of Annual Returns (MGT-7, AOC-4): Ensuring Compliance with Corporate Regulations

Filing annual returns is a mandatory requirement for every company registered under the Companies Act, 2013. These returns provide the government with an update on the company’s financial performance and compliance status. The two primary forms involved in the filing of annual returns are MGT-7 and AOC-4, both of which must be filed within a specified time frame after the company’s financial year ends. Non-compliance with these filing requirements may result in penalties or legal consequences for the company.

What is MGT-7?

MGT-7 is the form used for filing the company’s annual return, which includes details about the company's financial performance, its shareholders, and directors. It provides the Ministry of Corporate Affairs (MCA) with information about the company’s business activities and shareholder structure for the particular financial year.

The MGT-7 includes:

Details of the company’s registered office.
Changes in the company’s shareholding pattern.
A list of shareholders and their shares.
A summary of the company’s annual financial statement.
Details about the company’s directors.

What is AOC-4?

AOC-4 is the form used for filing the company’s annual financial statements with the MCA. It includes the company’s balance sheet, profit and loss account, and cash flow statement for the financial year. The financial statement is required to be approved by the Board of Directors before it is filed with the registrar.

The AOC-4 includes:

Financial statements of the company, including the balance sheet, profit & loss account, and cash flow statement.
Director’s report and auditor’s report.
Any other annexures or documents as required under the Companies Act.

Due Dates for MGT-7 and AOC-4 Filing

MGT-7: Must be filed with the Registrar of Companies (RoC) within 60 days from the date of the Annual General Meeting (AGM).
AOC-4: Must be filed with the RoC within 30 days from the date of the AGM.

Section under which MGT-7 and AOC-4 are Filed

MGT-7 is filed under Section 92 of the Companies Act, 2013, which mandates the filing of the annual return of the company.
AOC-4 is filed under Section 137 of the Companies Act, 2013, which deals with the filing of financial statements with the Registrar.

Penalties for Non-Compliance

Failure to file MGT-7 and AOC-4 within the stipulated time frame can result in the following penalties:

Late Fees:
- MGT-7: A late fee of Rs. 100 per day is charged if the annual return is filed after the due date.
- AOC-4: A late fee of Rs. 100 per day is charged for delayed filing of the financial statement.
Penalty: If the company continues to default, the company and its officers may face legal action, leading to additional fines and penalties under Section 92 and Section 137 of the Companies Act, 2013.

Benefits of Filing Annual Returns (MGT-7 & AOC-4)

Maintaining Compliance: Filing annual returns ensures that the company is complying with the Companies Act, 2013.
Transparency: Regular filing maintains transparency and provides the government with necessary details about the company’s operations.
Avoid Penalties: Timely filing helps avoid unnecessary penalties or legal complications.
Improved Corporate Governance: Filing annual returns reflects good corporate governance practices and can enhance the company’s credibility.

Why Choose Apnaa Filing for Filing Annual Returns (MGT-7 & AOC-4)?

Expert Assistance: Our experienced professionals ensure that your company’s annual returns are filed correctly and on time.
End-to-End Service: We assist with preparing, reviewing, and filing the forms MGT-7 and AOC-4.
Regulatory Compliance: We help your company comply with all requirements of the Companies Act, 2013, ensuring there are no delays or penalties.
Hassle-Free Filing: We simplify the filing process, allowing you to focus on your business while we take care of the paperwork.
Accurate Documentation: We ensure that all necessary documents and annexures are correctly compiled and attached.