MGT-7 / MGT-7A

Section: Section 92 of the Companies Act, 2013

Purpose: The purpose of filing MGT-7/MGT-7A is to provide the Registrar of Companies with a comprehensive report on the company's activities, finances, and corporate governance during the financial year.

Applicability: Every company, other than a One Person Company (OPC) and a Small Company, shall file its annual return in Form MGT-7. In the case of a company having a paid-up share capital of less than or equal to Rs. 10 crore or a turnover of less than or equal to Rs. 50 crore, the company can file Form MGT-7A instead of Form MGT-7.

Timeline: The due date for filing MGT-7/MGT-7A is within 60 days from the date of the Annual General Meeting (AGM). If the AGM is held on September 30th, then the due date for filing the forms is on or before November 29th.MGT-7A needs to be filed within 30 days of the AGM.

Exemption: A One Person Company (OPC) and a Small Company are exempted from filing Form MGT-7.

Penalty: If a company fails to file its annual return within the due date, then the company and its officers who are in default shall be liable to pay a penalty. The penalty amount is Rs. 100 for each day of default subject to a maximum of Rs. 5 lakhs or 2% of the company's total turnover, whichever is lower.

Due Date: The due date for filing MGT-7/MGT-7A is within 60 days from the date of the Annual General Meeting (AGM).

Forms: Form MGT-7 is the annual return form that is filed by companies that are not Small Companies or One Person Companies. Form MGT-7A is the simplified annual return form that can be filed by companies that have a paid-up share capital of less than or equal to Rs. 10 crore or a turnover of less than or equal to Rs. 50 crore.

Reporting Authority: The annual return in Form MGT-7/MGT-7A is filed with the Registrar of Companies (RoC) having jurisdiction over the registered office of the company.

Other Details: The annual return filed in Form MGT-7/MGT-7A includes details such as the company's name, registered office, principal business activities, share capital, indebtedness, details of transfers of securities, members and debenture-holders along with changes therein since the close of the previous financial year, details of meetings of members and debenture-holders, directors, key managerial personnel, and other significant matters.