Which MGT-7 should file by Small Companies?
Ministry of Corporate Affairs (MCA) by amendment in Rule 11 of Companies (Management and Administration) Amendment Rules, 2021 has introduced e-form MGT-7A as annual return of Small Companies and OPC w.e.f. financial year 2020-21 on wards. MGT-7A available on MCA since 17th July 2021.
In this editorial author shall discuss the questions arising in mind of professionals/ corporates i.e. If Any Small Company or OPC wants to file Annual Return for ended before 31.03.2021 (eg. FY 2019-20, 2018-19, or any previous financial year). Then such Company needs to file MGT-7 or MGT-7A for such previous years?
Extract of Rule -11:
Every company shall file its annual return in Form No.MGT-7 except
- One Person Company (OPC) and
- Small Company.
One Person Company and Small Company shall file annual return from the financial year 2020-2021 onwards in Form No.MGT-7A.
- Interpretation of New Provisions:
As per Rule 11 (extract given above) OPC and Small Company shall file MGT-7A for FY 2020-21 and onwards. After reading this one can opine that MGT-7 is applicable from 2020-21 and onwards.
- Practical Difficulty:
As form MGT-7A launched on 17th July 2021 and on same date MCA has launched updated version of MGT-7.
After Updation in MGT-7 w.e.f. 17th July 2021 it is not even accepting CIN of Small Companies and OPC and showing following error.
According to this Error MGT-7 shall not accept CIN of Small Companies and OPC w.e.f. 17th July 2021.
After reading the provisions and practical aspect one can opine that as on date if a Small Company or OPC wants to file their Annual Return for FY before 2020-21 i.e. 2019-20, 2018-19 or earlier financial years, then such companies have to file such Annual Returns in form MGT-7A instead of form MGT-7.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at email@example.com).
Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.
IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION