The companies that have not filed its balance sheet or annual return consecutively for few years in India are known as defaulter companies. Ministry of Corporate Affairs (MCA) website regularly publishes the list of defaulter companies status, Defaulter Company Secretaries list and the list of Defaulter Directors in India. If these companies try to file forms on MCA website then the website displays an error message prohibiting the filing of form by the defaulter company or any related company.
As discussed above, the continuous default in filing of a balance sheet or annual return of a company can lead to an error message on the MCA website while trying to upload e-forms pertaining to the defaulter company or any other related company having common Directors. The following error message is displayed:
“The Director signing the e-form is also a director of a defaulting company which has not filed the due balance sheet and/or annual return. Hence the director is not allowed to file this form. Such defaulting company is required to file all the balance sheets, annual returns first, and then only the director will be allowed to sign the e-form for filing.”
Additionally, the MCA website also publishes the names of the company, directors and company secretary as defaulters. Hence, the best practice is to complete the required compliances within the stipulated time.