All about Form MGT 7A for One Person Company and small companies – abridged annual return

The central government introduced companies (Management and administration) amendment rules in 2021. This announcement was verified via a notification in the official gazette. Before this amendment, there was MGT 7 form for annual return for all companies. However, In 2021, form MGT 7A has been introduced for One Person Company and small companies.

What is form MGT 7A?

The Ministry of Corporate Affairs (MCA), India, introduced MGT 7A as an abridged annual return form to simplify the annual compliance process for One Person Companies (OPCs) and Small Companies.

Why Was MGT 7A Introduced?

Earlier, all companies had to file MGT 7, which required a lot of details. To reduce the burden on small businesses, the government introduced MGT 7A in 2021 as a shorter and simpler version.

Who Needs to File?

• One Person Companies (OPC): Companies with only one shareholder and one director.
• Small Companies: Private limited companies with:

1. Paid-up share capital ≤ ₹4 crores (Previously ₹2 crores before 2023).
2. Turnover ≤ ₹40 crores (Previously ₹20 crores before 2023).

• If a company crosses these limits, it must file MGT 7 instead of MGT 7A.

Introduction of form MGT7A for one company and small companies

• Earlier, every company Private Limited Company, One Person Company, or Small Company registered in India had to file its annual return in Form MGT 7.
• Now, as per the Amendment rules, 2021, Every company shall file its annual return in Form MGT 7 except One Person Company and Small Companies.
• From Financial year 2020-2021 onwards, One Person Company and Small Companies needs to file its annual return in MCA Form MGT 7A.
• Form MGT 7A is required to file with ROC with specified fees.

Documents Required for Filing

• Company Details (CIN, Name, Address)
• Principal Business Activity
• Shareholding Structure
• Board of Directors Details
• Financial Information (Profit & Loss Account, Balance Sheet)
• Other Compliance Details (Whether any penalties, legal matters, etc.)