What Are the Penalties for Late Filing of AOC 4 & MGT 7?

The Penalties for Late Filing of AOC 4 & MGT 7 is a question asked by many company owners & compliance experts. The Companies Act 2013 requires every company to file financial papers through AOC 4 & file the annual return through MGT 7 within the time set by law. The delay leads to daily fees & ROC compliance penalties that affect the company & the officers. The MCA now follows strict rules for late filing & the cost increases each day. 

Today, in this article we will look at the Penalties for Late Filing of AOC 4 & MGT 7 on FileSure.

What is Included in AOC 4 & MGT 7 Filing Requirements?

The AOC 4 form carries key financial papers like audited financial reports, board report, auditor report, director details, basic governance data & details of linked firms. The company must file AOC 4 within thirty days of the AGM & the delay increases the AOC 4 due date penalty.

The MGT 7 form carries the company details, share pattern, changes in capital, meetings held, director details & compliance status. The filing must be done within sixty days of the AGM & the delay increases MGT 7 non filing consequences for both the company & the officers.

What Are the Applicable AOC 4 Late Filing Penalties & Additional Fees for AOC 4?

• Daily Additional Fees: The MCA charges one hundred rupees each day for delay in AOC 4 filing & there is no limit on the daily fee.These costs rise fast & even a delay of thirty days leads to a high amount.

• Statutory Penalties Under the Act: The law says the company can be charged up to ten lakh rupees & there can be extra daily penalty if the delay continues (Company Penalty). The officers can be charged at least fifty thousand rupees & there can be a daily penalty for each day of delay & long delay can also lead to disqualification (Director Penalty).

• AOC 4 Non Filing Consequences: The delay in AOC 4 can bring MCA notices & there can be issues in opening bank accounts & raising loans. These delays create problems in audits & the compliance status becomes weak.

What Are the MGT 7 Late Filing Penalties & Additional Fees for MGT 7?

• Penalties for the Company & Officers: The law says the company must pay fifty thousand rupees & a daily fee of one hundred rupees & the total can go up to five lakh rupees (Company Penalty). The officers must pay personal penalties & daily fines until the form is filed & the delay can cause more checks in future filings (Officer Penalty).

• MGT 7 Non Filing Consequences: The delay harms the compliance image & there can be trouble during loan checks & MCA reviews & long delay can even lead to disqualification of directors.

The MGT 7 form also has a daily late fee of one hundred rupees & this increases fast with time.

What Is the Importance of Timely ROC Compliance for Companies?

The points below show why timely ROC compliance is important for every company:-

• The timely filing helps the company avoid AOC 4 late filing penalty & MGT 7 late filing penalty.

• The compliant company gains trust from banks, investors & bodies that check documents. 

• The delay brings legal issues like MCA notices, inspections & cases that waste time.

• The directors face personal penalties under the Companies Act 2013 & timely filing keeps them safe.

• The smooth filing helps in loans, government work, business changes & audits & it also shows good governance.

Summary of Penalties for Late Filing of AOC 4 & MGT 7

The table helps the reader understand the time limit & the cost of delay.

Conclusion

The Penalties for Late Filing of AOC 4 & MGT 7 is a topic all companies must understand. The delay brings daily fees, legal issues, heavy penalties & loss of trust for the company & its officers. 

These points show why AOC 4 filing requirements, MGT 7 filing requirements & ROC compliance penalties must be followed on time. The timely ROC filing supports company growth, legal safety & a strong compliance record.

Also Read: When Does A Company Need To File Financial Statements With Roc