MGT 7 is an electronic form used to file the particulars of the annual returns by companies in India. The form can be downloaded easily from the MCA portal and then filled and uploaded back on the portal itself. However, every company needs to get it signed by a professional. This blog contains all the facts and details you need to know about form MGT-7.
What is Form MGT 7?
It’s an electronic form provided by the Ministry of Corporate Affairs (MCA) for companies to furnish the annual return. The MGT-7 form is maintained by the Registrar of Companies (RoC) electronically and is evaluated on the basis of the correctness of the information provided by the companies.
Who needs to file form MGT 7: Eligibility criteria for filing the form
All companies, whether they are a private or public company which is registered in India, needs to file an annual return in the MGT-7 e-form, every year.
The examples of companies eligible to file e-form MGT-7 to name a few are as follows;
Purpose of filing form MGT 7
Every company needs to prepare the annual return in form MGT-7 within 60 days of Annual General Meeting (AGM).
Furthermore, these details include all the details regarding:
- The address of the registered office
- The primary business activities, and the particulars of its holding, associate and subsidiary companies
- The debentures, shares, other securities and shareholding pattern of the organization
- Details of the indebtedness of the company;
- The particulars of the members and debenture-holders along with the change related to them since the conclusion of the previous financial year
- Also, the particulars regarding the promoters, directors, key managerial personnel along with alterations connected to them since the closure of the previous financial year
- The information regarding the Meetings of the members or a class thereof, the Board and its different committees along with the attendance details
- The remuneration of directors and key managerial personnel
- The particulars of the penalty or punishment if any forced upon the company, its directors or officers and information of compounding of offences and appeals made against such penalty or punishment
- The affairs relating to certification of compliances and disclosures as may be prescribed;
- The pattern of the shareholding
Due date to file form MGT 7
The form MGT-7 needs to be filed within 60 days after the Annual General Meeting of such company has been conducted. This form needs to be filed each year by every company registered in India.
Format of Form MGT 7
The format of the E-form MGT-7 can be downloaded from the MCA portal under the “Annual filing e-form” category.
Documents required for filing form MGT 7
The documents required to file the form MGT-7 are as follows;
- A-List of debenture holders and shareholders is necessary for the circumstance of a company having share capital.
- The Permission letter for the extension of the AGM. This is compulsory in case the due date for holding the AGM was stretched due to any reason
- Additional attachments as required
Read our article:Private Limited Company Registration Procedure in India
Details and other information to be furnished in the form
In Form MGT-7, a company have to provide the following details related to the fiscal year for which the form is being filed;
- Proof of Registered office
- Major business activities and particulars of its holding.
- It’s Subsidiary and associated companies
- The pattern of debentures, shares, other securities and shareholding.
- Details of the Indebtedness
- Members and debenture-holders and details on the change of such members
- The pattern of the shareholding of the company.
- Pointers describing the certification of agreements, declarations as directed, etc
- Detail of any punishment or penalty enforced on the directors or officers of the company.
- Also, the details of compounding of offences and claims addressed on the punishment.
- The compensation of directors and essential managerial personnel
- Information about the meeting of the Board members and other committees with the details of the attendance.
- Promoters, Directors, Key managerial personnel with the changes internally since the end of the past fiscal year
Steps to file form MGT-7
Step 1: Download form
Go to the official site of MCA[1]and download the form under the “Annual filing e-form” category.
Step 2: Fill the form
Then you have to fill the given form. Start by filling the CIN of the company, and then provide other details such as the category of the company, sub-category of the company, AGM details, etc.
Step 3: Pre-scrutiny and signing the form
Furthermore, complete the details of the people engaged in filling the form. Fill the form completely. Upon the showcase of the “no error” message, you need to sign it digitally.
Step 4: Upload the form and pay fees
Finally, you have to upload the form and make the payment. An SRN will be generated that you can keep for future references.
The Signing of the MGT-7 form in case of other than Small Company
MGT-7 e-form needs to be signed by a Company Secretary in practice in case of other than small company.
Fees Given below is the fee structure for filing form MGT-7;
| Sr. no. | Nominal Share Capital | Fees |
| 1 | Less than 1, 00, 000 | Rs. 200 |
| 2 | 1, 00, 000- 4, 99, 999 | Rs.300 |
| 3 | 50,00,000- 24,99,999 | Rs.400 |
| 4 | 25,00,000- 99,99,999 | Rs.500 |
| 5 | 1,00,00,000 and above | Rs.600 |
Penalties of not filing MGT 7
a) Late filing – the “penalty” for late filing is Rs 100 each day as upto maximum Rs 5 Lakh and the company and the officers in default shall be liable to give the penalty of Rs 50000.
(b) Non-filing – On non filing for a continuous time period of three financial years it will lead to disqualification of the Directors.
Moreover, after the amendment to Company’s Act 2019, the delay in filing the annual return shall amount to adjudication by the Registrar of the Company after issuing of the Show Cause Notice.
Conclusion
MGT 7 is the annual return that needs to be filed by every type of company registered in India. Corpbiz helps you in the quick and easy file of MGT 7 form and save you from government hassle and a late penalty. We are a leading company, having expertise in company registration, GST Registration, One Person Company Registration and much more. Contact us if you want to launch your new business or if you are looking for compliance services after incorporation.
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