According to the Rules and Regulations of Companies Act, 2013, every company registered in\u00a0Ministry Of Corporate Affairs is required to file Annual Returns in order to avoid hefty penalties\u00a0for the Directors as well as for the Company.
\nAn Annual Return is a document that is required to be filed by every company with the Ministry\u00a0of Corporate Affair office on the close of each financial year. Annual Returns shall be filed\u00a0within 60 days from the date of Annual General Meeting or if it is not held in any particular year\u00a0from the date at which this meeting shall have been conducted. As per Companies Act, 2013,any
\ncompany failing to do so within the prescribed time period will be considered as an offence for\u00a0which the punishment will be levied. Thus, it is imperative to file the accurate and timely returns\u00a0for every company. With this blog we will discuss the consequences of not filing Annual Return.<\/p>\n
What is the Punishment for Directors?<\/strong> Case 1- Non filing of return within 270 days:<\/strong> Directors would be liable to pay an Additional Penalty. The Directors will be imprisoned for the\u00a0term exceeding 6 months and the fine not less than 50K which can extend upto 50 lacs or with\u00a0both.<\/p>\n Case 2- non-filing of returns for 3 years:<\/strong> Case 3- false statement filed:<\/strong> What is the punishment for the Company:<\/strong> Case1- Period of delay of 15 days:<\/strong> Case 2: More than 15 days but not more than 30 days:<\/strong>
\nDirectors are Responsible for managing the functions of the company. Thus, filing timely returns\u00a0is also responsibility of Directors only. If they will fail to file the return on time then they will\u00a0have to face the punishment for it depending upon the days for which filing is delayed. Here are\u00a0some cases of penalty to be levied on the Directors:-<\/p>\n
\nIf the Director has not filed return within 270 days when it should be filed originally then it<\/p>\n
\nIf the return is not filed for the period of 3 years then the Directors have to face severe\u00a0consequences. They will no more be eligible to be appointed as Director for the same Company\u00a0for the total period of 5 year from the date from the date on which the company fails to file the\u00a0return.<\/p>\n
\nIn case the return of the company is filled with false or omitted facts the Director or any other\u00a0person responsible will be imprisoned for the time period of 6 months that may be extended to\u00a010 years. Also he shall be liable for the fine that would not be less than the amount involved in
\nfraud and can extend up to three times the amount involved in fraud.<\/p>\n
\nThe company is treated as a separate legal entity in the eyes of law. Thus, apart from the\u00a0Directors, the company will also be held responsible for the non-filing of Annual Returns by\u00a0MCA. Following is the amount of fine that the company is required to pay in different cases:<\/p>\n
\nThe amount of penalty would be 1 time of the number of fees normally charged.<\/p>\n
\nThe amount of penalty would be 2 times of the number of fees normally charged.<\/p>\n