MGT-7: What is it?

MGT-7 is an electronic form or e-form provided by the Ministry of Corporate Affairs (MCA) for companies to file their Annual Return. Companies have to file their Annual Return within 60 days after the Annual General Meeting (AGM). Generally, this meeting is due on the 30th of September following a particular Financial Year. Thus, barring exceptions, MGT 7 is due on 29th November every year.
Read: Income Tax Return and Audit Report Due Dates Extended

MGT-7 Eligibility

All companies registered in India, whether Public or Private have to file their annual returns via this e-form.

MGT-7 Format

The format of the e-form can be viewed here: e-form MGT 7
Also Read: AOC-4 Format, Due Date, Eligibility Rules

MGT-7 Details to be Disclosed

As the Financial Year draws to a close, filing the annual return means that the company has to furnish a wide list of particulars pertaining to the company, these include

  • Principal Business Activities; Details of companies holdings, subsidiaries, and associate companies; Registered Office
  • Shareholding patterns inclusive of Shares, Debentures and other securities.
  • Particulars listing down the indebtedness of the company
  • Detailed information about Members and debenture holders and the changes therein since the close of the previous financial year.
  • Changes in personnel since the close of the financial year these include people in the workforce such as Promoters, Directors and other key managerial employees.
  • Meetings of members or a class thereof, Board and its committee along with details of attendance.
  • The details of the Remuneration of Directors and Remuneration of other key company personnel.
  • Penalties or Punishment that the company or any of its officers faced, list of compounding offenses and the appeals made against such offenses.
  • Particulars related to Compliance Certification , Disclosures  as prescribed.
  • Shareholding patterns of the organization; other miscellaneous matters required by the particulars of the form.

Hence, it would be very beneficial to the company if they had all these details ready and along with this a copy of  Audited Financial Statement of the company would also help sort out MGT 7 formalities swiftly

The Penalty for  Non-Filing of MGT-7

For each day of default of not filing the Annual return e-form, a company will incur a penalty of Rs 100 . This penalty was raised by the government in 2018, and hence it is a must for companies to ensure timely filing of this annual return.

Document Checklist for MGT-7

Here’s a list of documents that should be filed along with the particulars required in the form. These can be filed under the attachments section.

  • List of Shareholders as well as debenture holders
  • If the AGM due date has been extended an approval letter for extension is required
  • Copy of MGT-8. MGT-8 is mandatory for companies with paid-up share capital exceeding Rs. 10 Crore or turnover exceeding Rs. 50 Crore . This provision is also applicable to listed companies.
  • Other Relevant attachments.

MGT-7 Signing

The e-form MGT-7 for Small Company as well as One Person Company (OPC) should be digitally signed with a class 2 Digital Signature or Company Secretary(CS) in practice.

At LegalRaasta we understand running a company as well as keeping up with compliances at the same time can be a challenging task that’s why we simplify compliance for you. We provide a wide range of CA/CS services including ROC compliances like MGT-7 filing. In addition, we provide services for corporates like Company Registration, GST Return, Trademark Search as well as Trademark Registration.  Call us with your requirements at +91-8750008585 or drop an e-mail at contact@legalraasta.com.