Faqs on E-Form MGT-7A

As per MCA notification dated 5th March 2021, MCA has introduced E-Form MGT-7A for Annual Filing. Below are some of the FAQs related to this topic.

What is MGT-7A?

MGT-7A is an Abridged or condensed form of Annual Return. This return has been introduced by Companies (Management and Administration) Rules, 2021 applicable with effect from 5th March 2021.

On which type of Companies MGT-7A will be applicable?

MGT-7A is applicable to small and one-person companies.

What is the Definition of Small Company?

A small company means a company that is not a public company whose turnover does not exceed Rs. 2 Crores and whose Share capital does not exceed Rs. 50 Lakh. However, a Change in the Definition of small companies was proposed in Union Budget 2021 The New definition has been notified by MCA. This Definition is applicable with effect from 1st April 2021. As per notification number GSR 92(E) dated 1st February 2021 small company means a company that is not a public company whose turnover does not exceed Rs. 20 Crores and whose Share capital does not exceed Rs. 2 Crores.

What is the Definition of One Person Company?

One Person Company means a company that has only one person as a member.

Is CS certification requirement applicable in Form MGT-7A?

No, Certification of Company Secretary is not required while filing Form MGT-7A.

Can you provide some of the brief differences between MGT-7 and MGT-7A?

• Now MGT-7 is specifically for companies other than small and OPC. That means the same is required to be certified by CS, unlike MGT-7A.
• In the case of MGT-7A for One Person Company [OPC]
  • The date of AGM is not applicable
  • Break-up of Share Capital of Share-holding Pattern is not applicable.
  • Details of Shares/ Debentures is not applicable
  • No need to give details of Associates or Joint Ventures
  • No column for providing unclassified share capital
  • Details of Directors including their attendance is not applicable
  • Board Meeting details are not applicable

Form MGT-7A will be applicable for FY 2020-21.

The government is working towards simplification of Compliances for the MSME sector. Along with the introduction of simpler form MGT-7A, the requirement of attaching an extract of the Annual return with the Boards Report in MGT-9 has been done away with.