What’s the difference between Form MGT 7 and Form MGT 7A?

The Ministry of Corporate Affairs (MCA) had notified the Form No. MGT-7 and Form No. MGT-7A for Filing of Annual Return with the Registrar of Companies (ROC) under the Companies Act, 2013.  In this article, we are going to discuss what’s the difference between Form No. MGT-7 and Form No. MGT-7A for all your better understanding.

So, without further ado. Let’s begin our discussion. Happy reading :)

First, we need to understand the background of amendments made to Rule 11 of the Companies Rules, 2014 by the MCA in the year 2021.

Before the amendment, under the old Rule 11, every company needs to prepare and file its annual return to ROC in Form No. MGT-7. But as per the recent amendment (applicable from the financial year 2020-21 onwards) a new Form No. MGT-7A was introduced for Filing of Annual Return to the ROC by specified companies.

Who can file Form No. MGT-7?

• Form No. MGT-7 is filled by companies other than the One Person Company (OPC) and Small Companies for submitting annual returns to the Registrar.

Who can file Form No. MGT-7A?

• Specified companies i.e., One Person Companies (OPCs) and Small Companies need to file their annual returns to the Registrar as per vide Form No. 7A.

Please note, that “Small Companies” are defined under the Companies Act, 2013 as follows:-

• Companies, other than public companies which have the paid-up share capital not exceeding Rupees 2 crore or such specified higher amount which shall not be more than 10 crores and have a turnover not exceeding Rupees 20 crores or such a specified higher amount which shall not be more than Rupees 100 crore.
• Although, there are exceptions and the following companies cannot be considered small companies irrespective of their paid-up share capital and turnover.

➢    A subsidiary or holding company.

➢    A body corporate or company, which is governed by any special act.

➢    A company that is registered under section 8 of the Companies Act, 2013.

And, the One Person Company (OPC) is defined as a company that only has one member and the same person is also the director of the company.

So, the most important difference between Form MGT- 7 and MGT-7A is that as per the amended Rule 11 of Companies Rules 2014, all companies need to file their annual returns to the Registrar in e-Form MGT-7, while the One Person Companies (OPCs) and Small Companies need to file their returns as per vide e-Form MGT-7A.

Now, let’s understand “What requisite details need to be furnished in Form No. MGT-7 and MGT-7A?”

The companies need to furnish the following details while e-filing Form No. MGT-7 and Form No. MGT-7A.

• Incorporation, CIN, and registered office details.
• PAN, particulars of associated/subsidiary companies, and the principal business activities of the company.
• Details of Share Capital (including shareholding pattern), Debentures, and other Securities of the Company.
• Details related to the turnover and net worth of the company.
• Details of promoters, members, and debenture holders.
• Details of directors and key managerial personnel (including remuneration)
• Details with regard to material related to certification of compliances and disclosures.
• Details of any penalty and punishment imposed.

What documents are required to furnish along with Form No. MGT-7 and Form No. MGT-7A?

The following documents need to be attached with Form No. MGT-7 and Form No. MGT-7A:-

• A list of shareholders and debenture holders of the company.
• A list of directors of the company.
• An approval letter for extension of AGM.
• A copy of Form MGT-8, where applicable.
• Optional Attachment(s), if any

What is the due date for filing Form No. MGT-7 and Form No. MGT-7A?

The due date to e-file Form No. MGT-7 and Form No. MGT-7A is within 60 days from the date when the Annual General Meeting (AGM) is held by the company or within 60 days from the date on which AGM is supposed to be held (in case it is not held by the company)

Please note, that the due date for conducting the AGM is on or before 30 September, following the end of every financial year. Hence, the due date for e-filing is generally 29th November of the particular financial year, if not extended otherwise.

How to file Form No. MGT-7 and Form No. MGT- 7A?

Both the forms i.e., Form No MGT-7 and Form No MGT-7A need to be filed electronically through the MCA website.

Please note, that the director of the company must sign both the e-forms using the valid Digital Signature Certificate (DSC).

We hope this article helps you to get a better understanding of the mandatory Form No. MGT-7 and MGT-7A. We suggest you ensure that you complied with annual returns filing and successfully e-filed the requisite form before the due date.

In case you need any assistance in MCA form filing or with any other business compliances please feel free to reach out to us. We at first startup are always happy to assist you all .