Ministry of Corporate Office (MCA) has issued three notifications dated 5th March, 2021, to further amend the process for filing of annual return by small companies and the incorporation process.
- Commencement notification
- As per the above notification, Government of India has fixed a date i.e. 5th March, 2021, on which the provisions of clause (i) of section 23 of the Companies (Amendment) Act, 2017, shall come into force. As per this notification, disclosures requirements have been further reduced, and specific form has been provided, for preparing annual return for companies like One Person Company, Small Company and such other class or classes of company.
- Changes have been made in section 92 of Companies Act, 2013, which contains the provisions for preparing the Annual return by a company.
- Previously, every company was required to file the Annual Return in Form MGT 7 only. However, lot of details contained in the Form MGT 7 were redundant for small companies and one person companies. Therefore, following details are not required to be reported by Small Companies and One Person Companies: a) details of indebtedness, b) names, addresses, countries of incorporation, registration and percentage of shareholding of Foreign Institutional Investors, c) further, an abridged annual return will be prescribed which will be filed by such companies.
- Companies (Management and Administration) Amendment Rules, 2021
- The Companies (Management and Administration) Amendments Rules, 2021, further amended the Companies (Management and Administration) Rules, 2014, wherein Sub-rule 1 of Rule 11 has been substituted. Earlier, Annual return was to be prepared by every company in Form no. MGT-7, but now One Person Company (OPC) and Small Company are required to prepare and file their annual return in Form No. MGT-7A” from the financial year 2020-2021 onwards.
- Rule 12 of the Companies (Management and Administration) Rules, 2014, has been completely substituted, wherein it is prescribed now that a copy of annual return shall be filed with the Registrar.
- Lastly, few explanations have been added in rule 20 (2) of the Companies (Management and Administration) Rules, 2014, w.r.t. meaning of Nidhi, agency, cut-off-date, cyber security, electronic voting system, remote-e-voting, secured system and voting by electronic means.
- Companies (Incorporation) Third Amendments Rule, 2021
To further amend the Companies (Incorporation) Rules, 2014, MCA has inserted in Form No. INC-35 AGILE-PRO (which is part of SPICE+), an option for the users to perform an Aadhar based authentication for GSTIN registration.
CS Vikash Kumar Jha