AOC-4 and MGT-7: Avoiding the ₹100-Per-Day Trap

Every company must file its financial statements in AOC-4 within 30 days of the AGM and its annual return in MGT-7 within 60 days. The penalty for delay is deceptively small-sounding: ₹100 per day, per form. The catch is that it runs without a cap — a two-year delay on both forms compounds into lakhs, and the filing remains mandatory regardless.

Beyond the fees, a stale MCA record has commercial consequences. Banks flag it during KYC refreshes, investors discover it in diligence, and directors accumulate a compliance history that follows them across boards. Active non-compliance is also a precondition problem: several MCA services become unavailable while filings remain pending.

The companies that never pay additional fees share one habit: the annual cycle starts in April, not September. Financial statements are closed early, the audit is scheduled against the AGM timeline rather than the other way around, and DIR-3 KYC for directors is checked as a calendar item — a deactivated DIN discovered on filing day is an entirely avoidable crisis.

If your company is already in arrears, regularise now rather than waiting for a notice. The fee meter runs daily, and periodic schemes offering relief are opportunities, not entitlements.