Delay in compliance could turn expensive for Corporates with the Corporate Affairs Ministry (MCA), increasing substantially the additional fees they would have to pay for filing certain forms. This could prompt companies that habitually delay their form filings to set their house in order and focus on regulatory compliance, said company law experts.
The MCA has increased the additional fees from up to 12 times normal fees to as high as 18 times for companies that regularly default in meeting reporting requirements. The higher additional fees would apply to such defaulting companies on all forms except an increase in authorised capital, submission of financials/annual returns and charges. This latest MCA move would be applicable from July 1 this year.
Sumit Naib, Director-Regulatory, Nangia Andersen LLP, told BusinessLine that a higher additional fee
fee across all forms will ensure that companies habitually accustomed to delayed filings relook at their internal reporting system.
Under the revised regime, the additional fees will depend on the delay period and range from 3 times normal filing fees to as high as 18 times of normal filing fees (for delays beyond 180 days).
The trigger point of applicability of such a higher additional fee would be two or more defaults concerning the delay in submitting either PAS-3 (Return of Allotment) or/ and INC-22 (Change of Registered Office) within 365 days – computed based on last submission of belated return.