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My friend's company is in a bit of a problem

Shanthi (Junior Student) (226 Points)

09 August 2013

Hello Everyone

Which is the best way forward ?

My friend's PVT LTD company stopped filing MCA annual return from 2008 till 2013 now. For the last 5 years the company did not file any annual return. The annual turnover was approximately about Rs 5 lakhs per year and the company did not show any profit but only losses. The company did not have any employees for the last 5 years.

The company's name is still present in the MCA website.

Is it wise to restart business using the same company's name ? If so approximately how much penalty he must pay to MCA for filing the annual returns for the last 5 years?

Or is it wise to shutdown the company and register a new company and start his business afresh ?

Please advise based on the new company 2012 bill and old existing rules.

Thanks

Regards

Shanthi

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4 Replies

Girish Paralikar (Practicing CS) (38 Points)
Replied 10 August 2013

Hi, In light of the passage of the Companies Bill, 2012, I suggest that the Company should immediatey file all its past returns by paying additional fees which are low as of today.

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Girish Paralikar (Practicing CS) (38 Points)
Replied 10 August 2013

I further assume that the authoriseod capital of the Company is Rs. 1 Lac. In that event, the penalty shall be Rs. 1,800/- per annum for each Form 23 AC and ACA and Form 20 B PLUS the normal filing fee of Rs. 200/-.

According to me, regularising the Company is a better way else thecompany unnecessarily loses its capital and the time it has spent so far in establishing the business.

Shanthi (Junior Student) (226 Points)
Replied 10 August 2013

Originally posted by : Girish Paralikar
	I further assume that the authoriseod capital of the Company is Rs. 1 Lac. In that event, the penalty shall be Rs. 1,800/- per annum for each Form 23 AC and ACA and Form 20 B PLUS the normal filing fee of Rs. 200/-. According to me, regularising the Company is a better way else thecompany unnecessarily loses its capital and the time it has spent so far in establishing the business.

Thanks

So the company has ot pay just Rs 10000 (Rs 1800 + Rs 200) X 5 and it will get regularized is it ?

It is a 1.5 lakhs authorized capital company

Shanthi

Girish Paralikar (Practicing CS) (38 Points)
Replied 12 August 2013

for the Company with Authorised capital of Rs. 1,50,000/-, the Normal fees shall be Rs. 200/- per form (form 23AC / ACA and form 20 B PLUS penalty of Rs. 1,800/- per form. i.e.for every year, it shall have to pay Rs. 4,000/- and get the company regularised.

Also, the Auditors shall have to file Form 23 B which shall fetch the same fees in addition to the above fees.

If any other forms are pending such as form 32 etc. it shall attract the same fees as above.