All you need to know about Form MGT-7A

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All you need to know about Form MGT-7A

Ministry of Corporate Affairs on 5th March 2021 amend Companies (Management and Administration) Rules, 2014, and issued Companies (Management and Administration) Amendment Rules, 2021. These amendments were issued and approved via a notification issued in the official Gazette. So according to them, the new annual return filing form MGT-7A has been incorporated for One Person Company & Small Company in place of Form MGT 7.

Table of Content-

Understanding E-Form MGT-7A

The MCA has issued the Companies (Management and Administration) Rules, 2014, and have published the Companies (Management and Administration) Amendment Rules, 2021 which came into force on 05.03.2021.

So, to sum up we can say that OPC i.e. One Person Company and Small Company have to file their Annual Return from the Financial Year 2020-21 onwards in e-Form MGT-7A and all the other Companies shall remain with filing the Annual Return in e-Form MGT-7.

E-Form MGT-7A is for OPC and Small Companies only. We have to select the Type of Company i.e. OPC or Small Company.

Who is required to file MGT-7A?

Earlier, every company whether it was a Private Limited Company, One Person Company, or small company, registered in India was expected to file its annual return in Form MGT 7. But following the above-discussed publication, every company shall file its annual return in Form MGT-7 besides One Person Company (OPC) and Small Company.

  • MGT- 7A is required to be filed by One Person Company and Small Company for the annual return from the FY 2020-2021 onwards in MCA instead of MGT 7.
  • Form MGT 7A is required to be filed with ROC with prescribed fees.
  • Apart from this, the Ministry of corporate affairs has also told a few terms such as Nidhi, agency, cut-off date, cyber security, etc.
  • Also, representations of the new MGT-7A are added in the Companies (Management and Administration) Amendment Rules, 2021.

What is Companies (Management and Administration) Amendment Rules, 2021?

  • These amendments are named by MCA as the Companies (Management and Administration) Amendment Rules, 2021.
  • These amendments will be applicable from the date of the notification of the official gazette 5th March 2021 as stated above.

There are few things which are not applicable for One person Company

  • The date of AGM
  • Particulars of Associate Companies (including a joint venture).
  • Detail of unclassified share capital;
  • Break-up of Share Capital;
  • Details of Shares/ Debenture transfer;
  • Shareholding Pattern (promoter/ public);
  • Member/ other meeting details;
  • Board Meetings detail;
  • Attendance of Directors;

Also, Certification by a practicing professional is also not required on this form.

Due date of filing Form MGT-7/MGT-7A

Form MGT-7 is required to be filed in 60 days from the date of the Annual General Meeting of the company.

The due date for setting the annual general meeting is on or before the 30th day of September following the close of every financial year.

Accordingly, the last date for filing form MGT-7/MGT-7A is usually the 29th of November every year.

Procedure for Filing of Form MGT-7/MGT-7A

Use the following steps to file Form MGT-7 on the MCA portal.

  • The applicant has to open the official website of the Ministry of Corporate Affairs (MCA) to file Form MGT-7.
  • After login into the portal, the applicant can upload Form MGT-7 or MGT-7A as the case may be.
  • Once you log in to their portal, insert a valid ‘Corporate identification number’ (CIN) for cancellation of additional issued Share of one class and increase in share capital.
  • Select the purpose of the e-Form from the drop-down menu and in the case of others define the entity in the description box given.

Conclusion

The MCA has come with various significant amendments by adding the Companies (Management and Administration) Amendment Rules, 2021 vide a notification dated 5th March 2021. The notification required to replace the rule in respect of Filing of Annual Return with the Registrar and notifies the new Form i.e. MGT-7 and MGT-7A. The new rule shall begin to come into force on the date of their notification in the Official Gazette.

We have tried to cover all the important information in this article to know more about this and other forms please contact Legal Window at admin@legalwindow.in or call us at +91-72407 51000

Also Read: A Complete Guide on OPC Compliance Requirements and Checklist

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