Penalty for Non-Maintenance of Registered Office by MCA

ROC Levies Penalty for Non-Maintenance of Registered Office

About the Case:

Vinjoh Healthcare Private Limited, a company registered in the State of Gujarat since March 21, 2003, is facing penalties from the Registrar of Companies for its non-compliance with the Companies Act, 2013. The company received a show cause notice from the Regional Director (NWR) on May 31, 2023, after the official communication sent to its registered office was returned, prompting further investigation.
Subsequently, a report was submitted to the Directorate, leading to the company being directed to confirm the status of adjudication proceedings. It has been determined that the company violated Section 12(1) of the Companies Act, 2013, by failing to maintain its registered office. Acting as the Adjudicating Officer, the Registrar of Companies has imposed a penalty on the company and its officers in default, in accordance with Section 12(8) of the Companies Act, 2013. Considering factors such as the company’s paid-up capital and turnover, the Adjudicating Officer applied lesser penalties, given that the company falls under the category of a “small company” as per Section 446B of the Companies Act, 2013.

Emphasizing the company’s obligation to rectify the default promptly, the Adjudicating Officer warned that failure to do so may result in further proceedings under Section 454A of the Companies Act, 2013. The company and its officers are directed to pay a penalty of Rs. 3,00,000 individually within 60 days from the date of receiving the order. The payment should be made through e-payment on the Ministry’s website, and the details must be filed in INC-28 under the MCA portal. This penalty serves as a reminder of the importance of maintaining a registered office, as mandated by the Companies Act, 2013, and underscores the regulatory authority’s commitment to enforcing compliance and accountability in the corporate sector.

Other Penalties imposed by MCA

  1. Late Filing Fees: Companies are required to file various statutory documents and financial statements within specified timelines. Failure to do so results in late filing fees and the amount increases with the duration of the delay.
  2. Penalty for Non-Maintenance of Registered Office: As in the case you mentioned, companies failing to maintain their registered office may face penalties.
  3. Non-Compliance with Annual Return Filing: Companies are required to file their annual returns with the Registrar of Companies (RoC). Non-compliance may lead to penalties.
  4. Default in Holding Annual General Meeting (AGM): Companies are required to hold an AGM within a specified period. Failure to do so may result in penalties.
  5. Non-Compliance with Corporate Governance Norms: Companies, especially listed ones, need to comply with corporate governance norms. Violations may attract penalties.
  6. Breach of Director’s Duties: Directors are required to fulfil certain duties and responsibilities. Breach of these duties may result in penalties, including disqualification.
  7. Violation of Insider Trading Regulations: Listed companies need to comply with insider trading regulations. Violations can lead to severe penalties.
  8. Non-Compliance with Disclosure Requirements: Companies need to make various disclosures to regulatory authorities. Failure to comply may result in penalties.
  9. Non-Compliance with Debenture Redemption: Default in the redemption of debentures may lead to penalties.
  10. Non-Compliance with Auditor’s Report: Failure to comply with the requirements related to the auditor’s report may attract penalties.

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