₹7 Lakh Fine Imposed by MCA Over Non-Maintenance of Registered Office

Introduction

What Went Wrong?

The company, incorporated on September 14, 2017, with an authorized capital of ₹5 lakh, came under the MCA’s radar after its e-form NDH-4 was rejected. In response, the Registrar of Companies (RoC) sent a letter to the company’s registered office seeking clarification.

However, the letter was returned undelivered with a postal remark stating that the recipient was “not found,” suggesting the registered office was non-functional—a violation of the Companies Act, 2013.

Final Verdict and Legal Basis

After receiving no response to the show-cause notice from either the company or its directors, the Adjudicating Officer concluded that:

The company was not maintaining its registered office as required, or
The company had changed its address without notifying the RoC.

Penalty Imposed:

₹4 lakh on the company
₹3 lakh collectively on its directors
Total penalty: ₹7 lakh, with payment required within 90 days of the order

Registered Office Rules Under Companies Act, 2013

Section 12 of the Companies Act mandates:

Every company must establish a registered office within 30 days of incorporation.
The office must be capable of receiving all official communications and notices.
Any change in the registered office address must be reported to the RoC within 30 days.

Non-compliance Penalty (Section 12(8)):
₹1,000 per day of default, up to ₹1 lakh per person responsible.

In this case, continued non-compliance and failure to respond to regulatory communications led to significant financial penalties

Key Takeaways for Businesses

Always maintain an accessible registered office to receive official notices.
Notify the RoC promptly of any changes to your registered address.
Respond to MCA notices to avoid escalated penalties.
Review MCA filings regularly to catch and fix any compliance issues early.
Non-compliance can be expensive—keep statutory records up-to-date

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About the Author

Muskan
Muskan is an experienced legal content writer known for simplifying complex legal and compliance topics into practical, easy-to-understand guidance. Her work helps entrepreneurs and business owners navigate regulatory frameworks with confidence, enabling them to build and grow their ventures with clarity and compliance

June 1, 2025