The Ministry of Corporate Affairs (MCA) has granted a major relief to companies by allowing them to file their annual returns and financial statements without additional fees until December 31, 2025. This move is part of the government’s effort to ease compliance burdens and encourage timely filing under the Companies Act, 2013.
Key Announcement Details
According to the official circular, companies can now submit Form AOC-4, Form MGT-7, and Form MGT-7A for the financial year 2024–25 without paying any late fees if filed on or before the extended due date. This relaxation applies to both private and public companies, giving them additional time to finalize audited accounts and related disclosures.
The MCA clarified that the extension aims to facilitate smoother compliance on the MCA21 Version 3.0 portal, which has recently undergone several system updates. The grace period ensures that technical issues or portal downtimes do not penalize genuine filers.
Purpose Behind the Extension
This decision underscores the ministry’s commitment to promoting Ease of Doing Business (EoDB) and supporting companies in maintaining regulatory compliance amidst digital transition challenges. By extending the deadline, the MCA aims to reduce filing pressure on corporates, professionals, and chartered accountants during the busy reporting season.
The measure is also expected to improve compliance rates and reduce instances of default-based penalties, especially for smaller enterprises that often face difficulties in meeting the standard due dates.
Compliance Advisory
Despite the relaxation, companies are advised to complete their filings well before the extended deadline to avoid last-minute technical issues. The MCA also urged companies to ensure accuracy and consistency in their disclosures, particularly regarding director reports, CSR details, and auditor certifications.
India Advocacy Insight
This extension provides timely relief for India’s corporate ecosystem, reflecting the MCA’s balanced approach between regulatory enforcement and business facilitation. The initiative is expected to enhance overall compliance health and support businesses navigating the digital transformation of corporate filings. With this move, the MCA reaffirms its role in fostering transparent, efficient, and technology-driven governance in India’s corporate sector.
