The Ministry of Corporate Affairs (MCA) has issued an important compliance reminder for companies filing their annual return in Form MGT-7 or Form MGT-7A. This requirement has been introduced to strengthen the verification of a companyโs registered office details and ensure better transparency in corporate records.
1. Applicability
This compliance applies to all companies that are required to file Form MGT-7 (annual return for most companies) or Form MGT-7A (simplified annual return for small companies and OPCs).
2. New Requirement
As part of the annual return filing process, companies must now attach a recent photograph of their registered office premises while submitting the form.
3. Mandatory Contents of the Photograph
The photograph should:
- Clearly display theย external view of the buildingย where the registered office is situated.
- Show theย companyโs name board/signage prominently, ensuring the name is visible and legible.
- Comply with the specifications prescribed underย Section 12(3)(a) of the Companies Act, 2013.
4. Legal Basis โ Section 12(3)(a), Companies Act, 2013
According to this section, every company must:
- Paint or affix its name and address of its registered office in a conspicuous position and in legible letters, in bothย Englishย and theย vernacular languageย used in the locality.
- Ensure the signage is continuously displayed and not obstructed.
The MCAโs latest instruction essentially links this existing legal requirement to the annual return filing process, ensuring compliance is visually verified.
5. Purpose of the Update
The MCAโs directive aims to:
- Prevent misuse of addressesย and shell company setups.
- Maintainย accurate corporate recordsย in the MCA database.
- Facilitate easierย verification by stakeholders, government authorities, and auditors.
- Strengthen corporate governance and compliance culture.
6. Practical Steps for Companies
Before filing Form MGT-7 or MGT-7A:
- Prepare the Signage:
Ensure the nameplate/signboard at the registered office:- Is inย English and local language.
- Displays theย full registered name of the company.
- Is fixed in aย visible location.
- Take a Clear Photograph:
- Stand far enough to capture the entireย front view of the premisesย and signage.
- Ensure good lighting and legible text.
- Avoid obstructions like parked vehicles or temporary boards covering the signage.
- Attach in the Form:
Upload the photograph in the specified section ofย Form MGT-7/MGT-7Aย before submission.
7. Penalties for Non-Compliance
If a company:
- Fails to display its registered office name as required under Section 12(3)(a),
- Or submits the annual return without attaching the required photograph,
it may face penalties under the Companies Act, 2013, including fines for both the company and its officers in default.
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