Last updated: May 21st, 2018 11:25 AM

Companies (Registration Offices and Fees) Second Amendment Rules, 2018

The Companies (Registration Offices and Fees) Second Amendment Rules, 2018 significantly raises the penalty for not filing annual return of a company. All companies registered in India must file Form MGT-7 and Form AOC-4, which compose the annual return of a company. Even companies with no turnover are supposed to file Form MGT-7 and Form AOC-4.

Increase in Penalty for Not Filing MGT-7 & AOC-4

Before the introduction of the The Companies (Registration Offices and Fees) Second Amendment Rules, 2018, the penalty for not filing annual return of a company used to be slab. A company would normally only have to pay a penalty of upto Rs.4800 for not filing annual return for upto 270 days. However, with the introduction of  Companies (Registration Offices and Fees) Second Amendment Rules, 2018, the MCA has increased the penalty for not filing MGT-7 or AOC-4 to Rs.100 per day per form. Hence, a company would be liable to pay a penalty of Rs.200 per day for not filing annual return. Thus, under the new rules, a company would become liable for payment of a penalty of Rs.54,000 for not filing annual return for 270 days, which is a significant raise compared to the old regulations.

Due Date of 30th June 2018

In the The Companies (Registration Offices and Fees) Second Amendment Rules, 2018, the MCA has allowed all companies which have not filed annual return to pay penalty and regularise compliance under the old rules upto 30th June, 2018. From 1st July, 2018, penalty for non-compliance would be calculated as per The Companies (Registration Offices and Fees) Second Amendment Rules, 2018. Hence, its prudent for all Entrepreneurs who have not filed their annual return to file their returns at the earlier and avoid penalty.

Penalty under Companies (Registration Offices and Fees) Second Amendment Rules

Period of Delay	Current Penalty	Proposed Penalty
Upto 15 days (sections 93,139 and 157)	Rs.400	Upto Rs.3000
More than 15 days and upto 30 days (Sections 93, 139 and 157) and upto 30 days in remaining forms.	Rs.800	Upto Rs.6000
More than 30 days and upto 60 days	Rs.1600	Upto Rs.12000
More than 60 days and upto 90 days	Rs.2400	Upto Rs.18000
More than 90 days and upto 180 days	Rs.4000	Upto Rs.36000
More than 180 days and upto 270 days	Rs.4800	Upto Rs.54,000
Delay beyond 270 days	Rs.100 per day	Rs. 100 per day per form

Companies (Registration Offices and Fees) Second Amendment Rules, 2018

The Companies (Registration Offices and Fees) Second Amendment Rules, 2018 is reproduced below for reference:

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Government of India

MINISTRY OF CORPORATE AFFAIRS

Notification

New Delhi, ^7th May, 2018

G.S.R. ……. (E).—In exercise of the powers conferred by sections 396,398,399, 403 and 404 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Registration Offices and Fees) Rules, 2014, namely:‑ 1. (1) These rules may be called the Companies (Registration Offices and Fees) Second Amendment Rules, 2018. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Registration Offices and Fees) Rules, 2014, (herein after refer to as the principal rules), for proviso to sub-rule (3) of rule 10, the following proviso shall be substituted. “Provided that Registrar shall allow fifteen days’ time for re-submission in case of reservation of a name through web service – RUN for rectifications of defects if any. 3. In the Principal rules, in the Annexure, in item I (Fee for filing under section 403 of the Companies Act, 2013r (a), for sub-item B, the following sub-item shall be substituted:‑ “B. Following Table of additional fee shall be applicable for delay in filing of forms other than for increase in Nominal Share Capital or forms under section 92/ 137 of the Act. TABLE

SI. No.	Period of delays	Forms        including     charge documents
01	upto 15 days (sections 139 and 157)	One time
02	More than 15 days and upto 30 days (Sections 139 and 157) and upto 30 days in remaining forms.	2 times of normal filing fees
03	More than 30 days and upto 60 days	4 times of normal filing fees
04	More than 60 days and upto 90 days	6 times of normal filing fees
05	More than 90 days and upto 180 days	10 times of normal filing fees
06	Beyond 180 days	12 times of normal filing fees

Note.- The belated filing of documents/forms (including increasing in nominal capital and delay caused thereon) which were due to be filed whether in Companies Act, 1956 Act or the Companies Act, 2013 Act i.e due for filing prior to notification of these fee rules , the fee payable at the time of actual filing shall be applicable”. (b), after sub-item C, the following sub-item shall be inserted, namely:-‑ “D. For Forms under section 92 or 137:- (i) In case the period within which a document required to be submitted under section 92 or 137 of the Act expires after 30/06/2018, the additional fee mentioned in Table shall be payable:- TABLE

Sl. No.	Period of delay	Additional fee payable (in Rs.)
01	Delay   beyond   period   provided under Section 92(4) of the Act	One Hundred per day
02	Delay    beyond   period    provided under Section 137(1) of the Act	One Hundred per day

(ii) In       all other    cases  where   the   belated  annual   returns   or   balance sheet/financial statement which were due to be filed whether in the Companies Act, 1956 or the Companies Act, 2013 the following additional fee mentioned in Table shall be payable:- TABLE

Sl. No.	Period of delay	Additional fee payable (in Rs.) upto 30/06/2018	Plus Rs. 100 per day with effect from 1/07/2018
1	upto 30 days	2 times of normal filing fees
2	More than 30 days and upto 60 days	4 times of normal filing fees
3	More than 60 days and upto 90 days	6 times of normal filing fees
4	More than 90 days and upto 180 days	10 times of normal filing fees
5	Beyond 180 days	12 times of normal filing fees

Note: (1) The additional fee shall also be applicable to revised financial statement or board’s report under section 130 and 131 of the Act and secretarial audit report filed by the company secretary in practice under section 204 of the Act. (2) The belated filing of documents/forms (including increasing in nominal capital and delay caused thereon) which were due to be filed whether in Companies Act, 1956 Act or the Companies Act, 2013 Act i.e due for filing prior to notification of these fee rules, the fee payable at the time of actual filing shall be applicable”.

[F. No. 01/16/2013 CL-V (Pt-I)]

K.V.R. MURTY

Joint Secretary.