A delay in compliance with the reporting requirements with the
Ministry of Corporate Affairs ("MCA")
under the Companies Act, 2013 ("Companies
Act"), may turn expensive for Indian companies with
effect from July 1, 2022.
Currently, the MCA charges an additional fee for filing of forms
with them beyond the timelines prescribed under the Companies Act
(either as a multiple of the normal fees up to a maximum of 12x of
the normal filing fee OR as a per day additional filing fee for
certain forms viz., annual returns and financial statements. Now,
the MCA has introduced a concept of 'Higher additional fee
in certain cases' with an increased additional fee up to
18x of the normal filing fees ("Higher Additional
Fees") for companies that regularly default in
meeting the prescribed timelines for such reporting
requirements.
