MGT-7 vs MGT-7A: Which Annual Return Form Should Your Company File?
Annual compliance is not optional. Whether your company is big or small, every business registered under the Companies Act, 2013 must file an Annual Return with the Ministry of Corporate Affairs (MCA).
But the real confusion most founders face is this:
Should we file MGT-7 or MGT-7A? What’s the difference? Which one applies to us?
This guide breaks it down in simple, practical language so you don’t lose your sleep over compliance.
What Is Form MGT-7?
MGT-7 is the standard Annual Return eform applicable to most companies registered in India.
It must be filed every financial year, covering the company’s financials, management structure, shareholding pattern, meetings, loans, penalties, and more.
Who Should File MGT-7?
- All Non-Small Companies
- Public Companies
- Listed Companies
- Section 8 Companies
- Companies with turnover above ₹40 crore OR paid-up capital above ₹4 crore
If your business is scaling fast, raised funds, or has multiple shareholders, you’re likely filing MGT-7.
What Is MGT-7A?
MGT-7A is a simplified Annual Return introduced by MCA for Small Companies and One Person Companies (OPCs).
Think of it as the “easy” version—less paperwork, fewer disclosures, and simplified reporting.
Who Should File MGT-7A?
You can file MGT-7A only if your company qualifies as a Small Company or an OPC.
As per the latest definition, a Small Company is one with:
- Paid-Up Capital ≤ ₹4 crore, AND
- Turnover ≤ ₹40 crore
(If either limit is crossed, the company must file MGT-7.)
MGT-7 vs MGT-7A: Key Differences Explained (Practical View for Founders)
| Feature | MGT-7 | MGT-7A |
|---|---|---|
| Applicability | All companies except Small Co. & OPC | Small Companies & OPCs |
| Complexity | Detailed disclosures | Simplified disclosures |
| Shareholding Details | Extensive | Basic |
| Management Details | Mandatory | Relaxed |
| Certification (MGT-8) | Required for: • Listed Co. • Public Co. ≥ ₹10 Cr paid-up capital • Public Co. ≥ ₹50 Cr turnover | Not required |
| Filing Burden | Higher | Low |
| Time Required | 4–6 hours (depends on data availability) | 1–2 hours |
| Compliance Risk | Higher due to detailed reporting | Relatively lower |
How to Know Which One Your Company Should File? (Quick Test)
Step 1: Check your company type
- OPC → MGT-7A
- Public Company → MGT-7
- Private Company → Go to Step 2.
Step 2: Check Small Company criteria
If you meet both limits → MGT-7A
If you exceed even one → MGT-7
Step 3: Check for special categories
Section 8 Company → MGT-7
Listed Company → MGT-7
What Happens If You File the Wrong Form?
Many startups assume this is “not a big deal.”
But MCA takes incorrect filings seriously.
Consequences include:
- Return may be marked defective
- MCA may issue notices or warnings
- You may need to refile with penalties
- Non-compliance affects investor due diligence
A wrongly filed return often creates doubts about governance, avoid this mistake at all costs.
Documents You Need for MGT-7 / MGT-7A
Here’s what founders should keep ready:
- MOA & AOA
- List of Directors
- Shareholding details
- Board and AGM meeting records
- Auditor details
- Certification (if MGT-8 applies)
- Financial statements (AOC-4 acknowledgement)
- Register of Members
- Details of loans, guarantees, and related-party transactions
A clean dataset saves you from TAT delays.
Due Date for Filing MGT-7/MGT-7A
The due date stays the same for both:
Within 60 days from the conclusion of AGM
If no AGM is held → 60 days from the date AGM should have been held
Late filing attracts ₹100 per day penalty, with no upper limit.
Why Small Companies Prefer MGT-7A (Real-World Benefits)
From an entrepreneur’s lens, MGT-7A is a blessing:
- Fewer compliance headaches
- Minimal disclosures
- Lower cost of professional filing
- No certification requirement
- Faster turnaround time
- Reduced chance of filing errors
This matters when you’re bootstrapping or running lean.
FAQs on MGT-7 vs MGT-7A
1. Is MGT-7A mandatory for all private companies?
Ans:- No. Only Small Companies and OPCs can file MGT-7A.
2. What if my company was a Small Company last year but not this year?
Ans:- Your filing form depends on the current financial year’s status.
3. Can a Section 8 Company file MGT-7A?
Ans:- No, they must file MGT-7.
4. Does MGT-7 require MGT-8 certificate?
Ans:- Yes, but only for specific cases like listed or large public companies.
5. What if we miss the filing deadline?
Ans:- You must pay ₹100 per day penalty until filing is completed.
6. Does NIL turnover mean we file MGT-7A?
Ans:- Not always. Your paid-up capital must also be within Small Company limits.
7. Is MGT-7A easier to file?
Ans:- Yes, it requires fewer disclosures and no certification.
How Lawgical Startup Helps You Stay 100% Compliant
Our compliance experts make sure you file the right form, with zero errors, well before the deadline.
We assist with:
- Compliance check on whether you qualify for MGT-7A
- Preparation & verification of Annual Return
- Filing AOC-4, MGT-7/MGT-7A
- MGT-8 certification (if required)
- ROC advisory for the entire year
When your filings are clean, investors, banks, vendors, and government authorities trust your business more.
Need help with your Annual Return filing? Contact Lawgical Startup for fast, error-free MCA compliance support.