Annual Return Filing
You must submit an annual return. After the due date passes, the jurisdiction can revoke a company’s good standing status. To regain good standing, most states require payment of past due annual reports fees. The consequences for not filing an annual return are very serious and can include fines from Rs. 50000 to Rs. 5 lakhs.
In addition to filing the annual report, fees must be paid. These fees vary by state, ranging from $50 to $400. Most public companies file annual reports with the Securities and Exchange Commission (SEC). The report includes financial statements and performance information. Other filing options are the state of incorporation, or city and county of operations.
Non-profit companies should file Goods and Services Tax (GST) Annual Return. The return is required for all companies with over Rs. 2 crore in revenue. The only exceptions are input service distributors, casual taxable persons and non-resident taxable persons.
Penalties for Late Filing
If a company does not file Form MGT 7 on time, it faces a penalty of INR 100 per day. The penalty amount increased remarkably in 2018. Filing before the deadline avoids extra fees.
For private limited companies, financial accounts are due at Companies House by a set deadline. Failure leads to penalties.
The Annual Return for Canadian corporations notifies Corporations Canada the company remains active. It allows updating records with address changes and board members.
Late filing of GST annual return leads to a penalty of Rs 100 per day for both CGST and SGST.
The IRS charges penalties for filing late or not filing tax returns. For late federal tax filing, the penalty is 5% of unpaid taxes per month, up to 25% of the total tax owed. Not filing when required is a crime.
Failing to file an annual report can negatively impact a business. Company business may slow if creditors or buyers refuse to work with a company not in good standing. To regain good standing, file the original annual report fee plus any late fees. Some states allow online filing to save time and money.
Businesses that don’t file annual reports on time face late penalties. States charge fees to incentivize prompt filing. Usually, a second deadline passes before further state action against the company. Paying late penalties and filing quickly is recommended. The penalty for not filing a company’s annual return increased to Rs. 200 per day.
If an annual report is missed, file the original fee plus any late charges. Some states enable online updates to save time and cost. Maintain document content as required. After publishing, verify receipt with the Secretary of State Corporation Department.