Consequences of Non / Late Filing of Annual Return & Financials with ROC

Financials of a Company are required to be filed with ROC Every Year. Form AOC 4 & MGT-7 are required to be filed with ROC from 30 days & 60 days from the date of Annual General Meeting of the company respectively. It will not be incorrect to say you cannot escape these 2 compliances as Consequences of Non / Late Filing of Annual Return & Financials with ROC are very severe.

Consequences of Non / Late Filing of Annual Return [MGT-7]

The penalty for not filing Form MGT-7 is Rs. 100 (Rupees Hundred) per day of default.

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, in addition to penalty of Rs. 100/- for each day during which such failure continues, subject to a maximum of Rs. 5,00,000/-.

If you receive notice from ROC and penalty is levied after due adjudication needs to paid otherwise additional fees paid is sufficient.

Also Director of a Defaulting Company can become disqualified, if this form is not filed for 3 consecutive years.

Consequences of Non / Late Filing of Financials [AOC-4]

The penalty for not filing Form AOC-4 is Rs. 100 (Rupees Hundred) per day of default.

In Addition to that :

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/-.

Also Director of a Defaulting Company can become disqualified, if this form is not filed for 3 consecutive years.

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