The Ministry of Corporate Affairs recently notified an Annual Filing form for small companies and One Person Companies under the provisions of Section 92 of Companies Act, 2013 read with sub rule (1) Rule 11 of the Companies (Management and Administration) Rules. This is done to reduce the compliance burden for small businesses and OPC’s, and to fix some practical problems when filling out the form. It is important to mention that the Finance Bill, 2021 It was noted that the definition of small business has been changed in the Finance Bill, 2021. Here is the amended definition:-
Small company means a company other than the public company —
(i) paid-up share capital of which does not exceed two crores rupees or such higher amount as may be prescribed which shall not be more than ten crore rupees and
(ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed twenty crore rupees or such higher amount as may be prescribed which shall not be more than one hundred crore rupees.
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act.
The Ministry of Corporate Affairs introduced a format of e-Form MGT-7A with few modifications, however few major differences between both are as follows-
- The new form does not include details about directors or KMP i.e. the composition of the board, details about directors and KMP have been removed.
- KMP details have been removed from the remuneration calculation.
- The list of directors, which was not included in the original form, has been moved to optional attachments.
Who is required to file MGT-7A
As discussed, the following two type of companies are required to file MGT-7A:
- One Person Companies
- Small Companies
This form is applicable for Financial Year 2020-21 and onwards. Form MGT-7A is asking for less information as compared to earlier one. In case if you are getting any kind of problem while filing your MGT-7A, you may ask for professional assistance at firstname.lastname@example.org or you may directly coordinate with us at 9625279785 or 9267941961.