Form MGT-7: An Overview

Introduction

Every business should submit an annual return to the registrar of companies (ROC). The annual return includes all the details relating to the shareholders, directors, holders of debentures, and shareholding distribution as of the previous financial year. Other than OPC and the minor business, every company incorporated under the Companies Act, 2013, or any other previous Companies Act, must submit an e-Form MGT-7 to the ROC. The MGT-7 is one of the mandatory compliance for Private Limited Company in India.

What is MCA Form MGT-7?

MGT-7 is an electronic form issued by the Ministry of Corporate Affairs for all companies for filing the data of their income and expenditure for the particular year.

From where form MGT-7 can be downloaded?

The Form can be downloaded from the MCA website. Go to the mca.gov.in< MCA service< E-filing category. There are several other forms that companies file from time to time and some of them are annual compliance of Private Limited Company.

Particulars to be filed in the e-form MGT-7

The Form MGT-7 is filed for an annual return, but it contains all of the information that would appear at the end of the financial year. The following particulars are to be filed in the Form MGT-7:

• The registered office, core business activity, and information about its holding, subsidiary, and affiliated company.
• The shares, debentures, and other securities of the company, as well as its shareholding pattern.
• Information about indebtedness.
• The members and debenture holders, along with any changes relating to them since the conclusion of the previous financial year.
• The promoters, directors, and key managerial personnel, along with any changes related to them since the end of the previous financial year.
• Meetings of members or a subset of members, the Board and its different committees, and attendance details.
• Salary of directors and key managerial personnel.
• Penalty or punishment imposed on the business, its directors, or officers, as well as the information about the offenses and appeals made against these penalties or punishment.
• The matters relating to certification of compliances and disclosures as may be prescribed
• Shareholding pattern of the company and such other matters as required in the form.

How to file Form MGT-7?

Once you have downloaded Form MGT-7, there are certain details to be filled in step by step. The following are the steps to file the annual compliance Form MGT-7 an annual return:

1. Enter the details related to registration and other details, which are:

• CIN Number of the Company
• Name of the Company
• Date of the Incorporation
• Type of Company/Category of Company/Sub-Category of Company
• Whether Company is having a share capital
• Financial Year, Date, and Time
• Annual General Meeting held

2. Enter the details related to the primary business activities of the Company, which are:

• S.No
• Main Activity Group Code
• Description of Main Activity Group Code
• Business Activity Code
• Description Business Activity
• Company Turnover in Percentage

3. Enter the details related to the particulars of the holding company, which are:

• S.No
• Name of the Company
• CIN/FCRN
• Holding/Subsidiary/Associate/Joint Venture
• Percentage of Share

4. Enter the details of the debentures, share capital, and other securities of the company.

5. Enter the information about the turnover and net worth of the particular company.

6. Enter the details of directors and key managerial personnel, along with the composition of the directors at the end of the financial year.

7. Fill in the details of the meeting of members, class of members, board, and committees of the board of directors.

8. Fill in the remuneration details of the directors and key managerial personnel.

9. Enter the details about the certification of compliances and disclosures.

10. Enter the details about the penalty and punishment imposed on the company, directors, and officers.

11. Finally, declare that all the above information is correct and true.  

Documents to be enclosed with the Form MGT-7

This electronic form can be submitted by including scanned copies of the required document under the attachments section. The attachment area is at the bottom of the form and requires the following attachments:

• List of shareholders, and debenture holders.
• Approval letter for extension of Annual General Meeting.
• Copy of MGT- 8.
• Any other attachment as needed.

Note- MGT-8 is a certificate provided by a practicing Company Secretary on the company's annual return.   

Due date of filing Form MGT-7

MGT-7 must be filed within 60 days of the date of the Annual General Meeting. The annual general meeting must be held on or before the 30th of September following the conclusion of a financial year. As a result, the due date for filing form MGT-7 is often November 29th.

Fine for not filing Form MGT-7

The fine for not filing the annual return i.e., Form MGT-7 has remarkably raised in 2018 to Rs.100 (Rupees Hundred) per day of default. Hence, this annual compliance of Private Limited Company must be filed before the due date.

Bottom line

It is necessary for all the companies including Private Limited Companies, and One Person Companies to file an annual return in form MGT 7, financial accounts and insolvency in form AOC-4, and all other Private Limited Company compliance. Failing at which might cause you a fine as per the provisions.