• Non-filing of annual returns (AOC-4)

My private limited company was incorporated on 26.11.2018. the company has not commenced business to date. I have received an e-mail from the ministry of corporate affairs regarding annual filing for the financial year 2018-19. 
I have no intention to keep the company operational. However, if there is a penalty for that, I may consider otherwise. Kindly advise as to what will be the best course of action.
Asked 6 years ago in Business Law

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

9 Answers

Form AOC 4 should be filed latest by the October 30th of the relevant Assessment year

 

2) A declaration has to be given by the Director/Manager/Secretary/CEO/CFO certifying that all information provided in the form is true and correct and is in compliance with the law. The form has to be digitally signed along with the DIN of the director or PAN of the Manager/CEO/CFO. A full time practising Chartered Accountant/Cost Accountant/ Company Secretary has to provide a declaration stating he/she has verified all the documents attached and he/she certifies all the information to be true, correct and complete. 

3) 

case of delay in filing the belated annual returns/balance sheet/financial statement the following fees is applicable:

Period of Delay

Additional fee payable

Up to 30 days

2 times of normal filing fees

More than 30 days and up to 60 days

4 times of normal filing fees

More than 60 days and up to 90 days

6 times of normal filing fees

More than 90 days and up to 180 days

10 times of normal filing fees

Beyond 180 days

12 times of normal filing fees

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

If that is so then wind up the company as ROC in default of not filing returns for consecutive 3 years may impose penalty and block the DIN Numbers. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

You need to wind up the same. But till the existing period of subsistence you need to pay the applicable taxes. You need to file the nil return if it's not conducting any business

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

The Directors of a company are responsible for ensuring that the company complies with all applicable rules and regulations. When a company defaults on compliance or dues payable, the Directors are held responsible for the default

In case a company has not been filed its Annual Return for three continuous financial years, then every person who has been a director or is currently the director of the specific company could be disqualified under the Companies Act, 2013. If a Director is disqualified, his/her DIN would become inactive and the person would not be eligible to be appointed as a Director of any company or a period of five years from the date of disqualification. Further, disqualified Directors would also not be allowed to incorporate another company for a period of five years.

A director of the company can be punished if the company has not been filed even after 270 days from the date when the company should have originally filed with additional penalty. Any Director who has defaulted in the filing of annual return of a company can also be penalized with an imprisonment of a term extended up to six months or with a fine of an amount not lesser than fifty thousand rupees and it might extend up to five lakh rupees, or with both imprisonment and fine. 

The penalty for not filing a companies annual return (Form MGT-7 and Form AOC-4) is set to be increased to Rs.200 per day. Thus, for a company that files its annual return 9 months after its due date, the penalty would be Rs.54,000 compared to a penalty of Rs.4800 applicable now.

In case the Company has not filed its Annual Return for the last two financial years continuously, then such companies would be termed as an “inactive company”. On such a classification, the bank account of the company could be frozen. Further, the Registrar could also issue a notice to the Company and initiate strike-off of the company from the MCA records.

 

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

- As per Companies Act, 2013 every Company have to file e-form MGT-7 within 60 from the date of Annual General Meeting ‘AGM’ and AOC-4 required filing with ROC within 30 from the date of AGM.

- Penalty, in case of delay in filing the belated annual returns or financial statement, is given below:

Period of Delay

Additional fee payable

Up to 30 days

2 times of normal filing fees

More than 30 days and up to 60 days

4 times of normal filing fees

More than 60 days and up to 90 days

6 times of normal filing fees

More than 90 days and up to 180 days

10 times of normal filing fees

Beyond 180 days

- Since, you dont want to continue the Company, then better option is to Wind Up the same.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

1. IRRESPECTIVE of your intentions /decisions, Co. & Director/s are liable to duly File their Annual Returns, Balance Sheet ....

2. Kindly prefer to comply with above thru a local Company Secretary (CS), by paying the relevant penalty amount, to avoid prosecution in a magistrates court.

3. Simultaneously AFTER above, you can file for dissolution  /winding of Co. (again thru a CS) by following due procedure of law. IF this is not done, THEN you will remain liable to file returns year after year, dispute no business /transaction /dormant ....

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

1. If you don't want the company to be operational then you can give an application for strike off your name from MCA records. 

2. The letter can be sent to registrar of companies. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

The financial statements of a company must be filed with the Ministry of Corporate Affairs every year. The MCA form for filing financial statements is AOC-4. Hence, Form AOC-4 is submitted with the MCA for each Financial Year within 30 days of a company's annual general meeting

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Penalty for not filing a companies annual return is rs 400 per day. De registered it without fail.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer