New Compliance Alert: MCA Mandates Registered Office Photo with MGT-7/MGT-7A or Face Massive Penalty

The Ministry of Corporate Affairs (MCA) has released a new important compliance reminder for companies who file their annual return in Form MGT-7 or Form MGT-7A.

The MCA is an Indian government ministry primarily concerned with the administration of the Companies Act 2013. This move is mainly to enhance corporate transparency and accountability.

MCA’s New Compliance are as follows:

1. Applicability: MCA’s compliance applies to all companies that are required to file Form MGT-7 or Form MGT-7A.

2. Requirement: Companies must attach a recent photograph of their registered offices while submitting the form.

3. Mandatory Contents: The photograph should-

• Be clearly visible with the external view of the building where the registered office is located.
• Ensuring the name of the company’s board/signage is prominently visible.
• Follow the specifications mentioned under Section 12(3)(a) of the Companies Act, 2013 .

4. Section 12(3)(a): According to this section, companies must-

• Affix the name and address of its registered office in an evident position and in neat letters in both English and the vernacular language used in the locality.
• Make sure the signage is continuously displayed.

5. Objective of the Update: The main purpose of this new update is to-

• Prevent misuse of addresses and shell company setups.
• Maintain precise corporate records in the MCA database.
• provides simple verification by stakeholders, auditors and government authorities.
• To make strong corporate governance and compliance culture.

6. Steps to Consider Before Filing MGT-7 or MGT-7A: Assemble the Signage-

• Make sure the nameplate/signboard at the registered office-
• Is in English and Local language
• Shows the full registered name of the company
• Is fixed in a visible location.

7. Visible Photograph:

• Take a photo from a distance to capture the whole front view of the place and signage.
• Make sure there is good lighting.
• Avoid obstructions like parked vehicles or temporary boards covering the signage.

8. Attach in the From: Upload the photograph in the mentioned section of Form MGT-7/MGT-7A before submission.

9. Penalties for Non-Compliance:

If a company fails to display its registered office name as required under Section 12(3)(a) or submits the annual return without attaching the required photograph, the company will face penalties under the Companies ACT, 2013. (including fines for both the company and its officers)

As per the MCA’s New Compliance Requirement, companies will be required to provide a photograph of their registered office, in addition to the submission of MGT-7 and AOC-4 through the MCA portal.

These Requirement affects all companies, regardless of size or category, and is planned to make a new aspect of verification for regulatory filings.