Introduction
Filing ROC (Registrar of Companies) returns for your company annually is not a mere legal formality but an improtant compliance requirement under the Companies Act, 2013. Non-compliance for three consecutive years can have very serious implications. This blog, prepared by My Dream Consultant, outlines the consequences and underlines the importance of timely ROC compliance.
What is ROC Filing?
ROC filing is the presentation of your company’s financial reports, annual return, and others to the Register of Companies for the purpose of transparency and conformity with the relevant laws for each registered company within India.
Key Consequences of Not Filing ROC for 3 Years
1. Penalty and Fines
Failure to file ROC returns attracts hefty penalties under Section 92 and Section 137 of the Companies Act, 2013. Here are some key points:
- Penalty for directors and company can go up to INR 1,000 per day per form.
- Cumulative fines can run into lakhs depending on the delay.
2. Disqualification of Directors
According to Section 164(2) of the Companies Act:
- Directors of defaulting companies are disqualified from holding directorship in any company for 5 years.
- The disqualification list is published publicly, damaging professional reputation.
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3. Dormant or Strike-Off Status
If ROC filings are not submitted for three consecutive years, the company may:
- Be classified as a dormant company.
- Face action under Section 248, leading to strike-off from the Register of Companies.
4. Legal and Criminal Liability
Non-filing is a statutory violation and can:
- Trigger prosecution for the company and its directors.
- Result in imprisonment up to 6 months for serious violations.
5. Loss of Business Opportunities
Non-compliance affects credibility:
- Banks and investors reject funding requests.
- Loss of partnership opportunities due to lack of transparency.
6. Difficulty in Revival
Restoring a struck-off company is a cumbersome process:
- Involves filing an application to the National Company Law Tribunal (NCLT).
- Additional costs and legal hurdles are incurred.
How My Dream Consultant Can Help
At My Dream Consultant, we specialize in:
- Filing overdue ROC returns to regularize compliance.
- Assisting with director reappointment if disqualification occurs.
- Offering guidance on reviving struck-off companies under Section 252.
With 10+ years of experience and 500+ positive Google reviews, we are a trusted partner for all your company compliance needs.
Steps to Avoid ROC Filing Defaults
1. Maintain Proper Records
Keep your financial records, board resolutions, and annual reports updated.
2. Set Reminders
Use digital tools or hire professionals to track due dates for filing forms such as AOC-4 and MGT-7.
3. Hire Experts
Consult professionals like My Dream Consultant to handle your compliance efficiently.
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