What is MGT-7 Form? 

 

MGT-7 is one of the important forms which has to be filed before the RoC in conformities of Companies Act, 2013 which is also known as the annual return of the Company. This form is a good way to get an idea of the financial and organizational condition of the company; the main facts concerning shareholders, directors, and key managerial officers, as on 31st March (last day of the financial year) are described here. 

 

Who has to file the form?

 

• It is noteworthy that every company, whether public or private registered in India has statutory legal requirement of filing the e-Form MGT-7 each year.

• The One Person Company (OPC) as introduced in the Finance Act 2021 are also necessitating the filing of the annual return in e-Form MGT-7A.

 

Format

 

The form can be obtained from the MCA website under the Annual filing e-forms section of the website.

 

What is the purpose of the e-Form MGT-7?

 

Every company shall file an annual return in form MGT-7 which contains the particulars as on the close of the financial year. These details include details regarding:

 

• Details of its registered office and principal business, its holding and subsidiary and associate companies. 

• The existing structure of share, debentures, other securities and shareholding pattern of the company; 

• Indebtedness of the company; 

• Members and debenture-holders together with changes thereto since the end of the last financial year; 

• Promoters and directors and key managerial personnel including any changes in them since the end of the last financial year.

• General meetings of members or of a class of members, meeting of the Board and of its committees and attendance records. 

• Compensation policy for the director and other managerial personnel; 

• Any penalty or punishment that may be taken against the company, the directors and the officers, and the particulars of compounding of offences as well as the appeals made against such penalty or punishment. 

• The matters connected with certification of compliances and disclosures in such manner as may be specified; 

• Its Shareholding pattern; and Matters, which were not covered in the form, but considered required to be filled in the form.

Annual Compliance for Companies

 

Annual Compliance for Private Limited Company

 It is noted that Private Limited Company in India need to obey certain annual compliances so as to keep their legal functioning intact and, thereby, avoid any kind of penalty that might render them inactive. Key compliances include:

• Annual Return (MGT-7): This form should preferably be completed and submitted within sixty days from the end of the AGM.

• Financial Statements (AOC-4): Preparation and submission of the company’s financial statement not later than thirty days after the Annual General Meeting.

• Board Meetings: The board is to convene at least four board meetings every year with the interval between the meetings not being more than one hundred and twenty days.

• Statutory Audit: Preparation of analytical and comparative financial statements, The Company should engage a qualified Chartered Accountant to conduct an audit at least once every year.

 

 Annual Compliance for LLP

LLPs have also some requirements for compliance to enable it retain its legal status:

• Annual Return (Form 11): This has to be done within 60 days from the end of the financial year in question.

• Statement of Account & Solvency (Form 8): Reproduction of the financial statements within one month in case half year financial statements are to be prepared or within 30 days from the end of six months of the financial year.

• Income Tax Return: Income tax return is mandatory for every LLPs and this has to be filed on an annual basis.

 

Annual Filing for OPC (One Person Company) 

 

OPCs are also expected to file their annual return using MGT-7A form which is formatted to be simpler than the MGT-7 form for the OPCs and small companies. Key information that may include the financial status of the company, management changes, and shareholders’ structure are revealed in the form. 

 

 Key points about MGT-7A filing for OPCs: 

• Due Date: In layman terms, the form has to be filed within 180 days after the closing of the company’s financial year. 

• Details Included: Details containing names, addresses and other details of directors, annual reports, balance sheet of company and any change taking place in the same year. 

• Certification: MGT-7A must be digitally signed by the director of the OPC, and if necessary appended with a Certificate by a Company Secretary.

 

Where can you download the e-form and the Help kit? 

 

MGT-7 is available for download on the Ministry of Corporate Affairs MCA website. The MGT-7 help kit also outlines in detail how to best complete the form so that the data submitted is accurate. It addresses the inputs of information needed, as well as instructions of dealing with any special circumstances. 

 

MGT-7 E-form Attachments

 

The following are the documents that are required to be attached to this e-Form:

 

• List of shareholders, debenture holders

• Approval letter for extension of AGM;

• Copy of MGT-8;

• Optional Attachment(s), if any

 

MGT-7 Due Date 

 

 The due date to file MGT-7 is generally 60 days from the end of the Annual General Meeting (AGM). In some cases, depending on extensions that may occur in the course of the year, specific dates may differ. This information may not be very current and it is advisable to go to the MCA Website to check the updated time frame. Companies are required to ensure that the filing is done within the timeline to avoid attracting the penalties.

 

These costs can be high and increase proportionately to the time that is taken to execute the delay. It is important for the papers to be filed as soon as possible so as to avoid incurring penalties. 

 The AOC 4 is the form to be filled and submitted with the ROC regarding the financial statement of the company. While AOC 4 is mandatory for annual compliance, MGT-7 is also required for the same, but they both have different uses. AOC 4 examines finance related to the company’s financial statements while the annual return is examined under MGT-7. 

 

 AOC 4 and MGT-7 Due Date 

 

 The due date for AOC 4 and MGT-7 is substantially similar. AOC 4 is to be filed within thirty days from the date of AGM, and MGT-7 is to be filed within sixty days from the date of the AGM. Companies have to stick to these timelines to be able to file both financial statements and annual returns on time.

 

Which are the attachments required to file this form?

 

For documents that include paperwork, the originality of the work can be inserted by scanning and attaching to the e-form under the head of attachments. This will be developed near to the end of this form. The attachments required include: 

 

• Shareholders, debenture holders list 

• Letter for approval extension from ROC in convening of AGM, if applicable. 

• Copy of MGT-8, if applicable; 

• UDIN certificate, if applicable

• Optional Attachment(s), if any

What is the due date of filing this form?

 

• The Form MGT-7 is to be filed with the ROC within 60 days of passing of the company's Annual General Meeting. 

• The due date for regulation of the annual general meeting is on or before the 30th day of September of the following financial year. 

•  Consequently, the filing of form MGT-7 has to be done in most cases by the 29th of November every year.

 

Conclusion 

 

 This filing is required by the law for all companies and will be the seventh management force. Knowledge of the form’s function and the timeframe within which it should be filed can go a long way in helping such firms avoid unnecessary expenditure in form of penalties among others. To avoid making mistakes while filing, companies should use the MGT-7 help kit, check the latest form on the MCA website and obey the set time. 

 Thus, all these aspects will help firms to manage their compliance with the regulations properly and uphold a good image with the ROC. 

 

Disclaimer

 

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