Form MGT-6 - Applicability, Penalty, Due Date and Procedure

Form MGT-6 - Applicability, Penalty, Due Date and Procedure. Form MGT-6 is a mandatory filing requirement under Section 89(6) of the Companies Act, 2013. It is used by companies to declare non-beneficial ownership of shares to the Registrar of Companies (ROC). This form ensures transparency in shareholding structures and prevents discrepancies between registered and beneficial ownership.
What is Form MGT-6?
Form MGT-6 is an electronic document submitted to the Ministry of Corporate Affairs (MCA) when a registered shareholder does not hold the actual beneficial interest in shares. The company must file this form within 30 days of receiving such a declaration from a registered member.
Key Elements of Form MGT-6:
• Mandatory under Section 89(6) of the Companies Act, 2013.
• Filed within 30 days of receiving a declaration.
• Ensures compliance by disclosing beneficial ownership to the ROC.
• Applicable to all companies with shareholding structures involving beneficial ownership.
Applicability of Form MGT-6
All companies in India, regardless of type, must file Form MGT-6 if they receive a declaration indicating that a registered shareholder does not hold the actual beneficial interest. This requirement applies uniformly across private limited, public limited, and listed companies.
Information Required for Filing Form MGT-6
When filing Form MGT-6, companies must provide the following details:
Company Information
• Corporate Identity Number (CIN)
• Company Name
• Registered Office Address
Share Details
• Number of Shares
• Distinctive Share Numbers (From & To)
• Type of Shares (Equity or Preference)
• Face Value and Paid-up Value of Shares
Registered Member Information
• PAN / Passport Number / Other Registration Number
• Name and Address
• Date of Birth / Incorporation
• Date of Entry in Register
• Declaration Date
• Date of Receipt of Declaration
Beneficial Owner Details
• Identification Number of Beneficial Owner
• Name and Address
• Date of Declaration
• Date of Receipt of Declaration
Steps to File Form MGT-6 Through MCA Portal
Filing Form MGT-6 is a seamless online process through the Ministry of Corporate Affairs (MCA) portal. Follow these steps:
1. Visit the MCA Website - Navigate to the eForm filing section.
2. Log in with Credentials - Use your registered account or create a new one.
3. Select eForm MGT-6 - Locate the correct form on the portal.
4. Fill in the Required Details - Enter company, shareholder, and beneficial ownership information accurately.
5. Attach Relevant Documents - Optional attachment of the declaration received from the registered member.
6. Preview and Submit - Review all entries before final submission.
7. Pay the Filing Fee - Fees depend on share capital, ranging from INR 200 to INR 600.
Post Submission
• Service Request Number (SRN) is generated for future reference.
• Challan for Payment Proof is issued upon successful submission.
• Acknowledgment Email is sent to the company's registered email address.
Penalty for Late Filing
Failure to file Form MGT-6 within the deadline incurs penalties as per the delay period:

Delay Period
Penalty

Up to 30 days

2x the normal fee

31 - 60 days

4x the normal fee

61 - 90 days

6x the normal fee

91 - 180 days

10x the normal fee

Above 180 days

12x the normal fee

Recent MCA Update: Companies (Management and Administration) Amendment Rules, 2024
On July 15, 2024, the Ministry of Corporate Affairs issued an update revising the Companies (Management and Administration) Rules, 2014. The existing Form MGT-6 is now being replaced with a new version to improve transparency and simplify the declaration process.

Conclusion
Filing Form MGT-6 is an important compliance requirement for companies to report discrepancies between registered and beneficial share ownership. Timely submission within 30 days of receiving a declaration ensures regulatory compliance and avoids penalties. Companies must provide detailed shareholder and beneficial ownership data, ensuring accuracy and transparency. With the latest MCA amendments, companies must stay updated on any changes in the filing process to maintain compliance. By following the correct filing process and adhering to deadlines, businesses can ensure smooth operations and avoid legal complications related to shareholding transparency.
FAQs
Q1. Who is required to file Form MGT-6?
Ans. Any company that receives a declaration stating that a registered shareholder does not hold the actual beneficial interest in shares must file Form MGT-6 with the ROC.
Q2. What is the deadline for filing Form MGT-6?
Ans. The company must file Form MGT-6 within 30 days of receiving the declaration from the registered shareholder.
Q3. What are the consequences of not filing Form MGT-6 on time?
Ans. Late filing attracts penalties based on the delay period, ranging from 2x to 12x the normal filing fee, depending on the number of days past the deadline.
Q4. What documents are required for filing Form MGT-6?
Ans. Companies need to provide details such as Corporate Identity Number (CIN), shareholding details, registered shareholder and beneficial owner information, and optionally attach the declaration received.
Q5. How can Form MGT-6 be filed?
Ans. The form is filed online through the MCA portal by logging in, selecting the form, filling in details, attaching necessary documents, paying the prescribed fee, and submitting the form.
Q6. Has there been any recent update regarding Form MGT-6?
Ans. Yes, as per the MCA update on July 15, 2024, the Companies (Management and Administration) Amendment Rules, 2024 have introduced a revised version of Form MGT-6 to enhance transparency and simplify the declaration process.

Form MGT-6 is a mandatory filing requirement under Section 89(6) of the Companies Act, 2013. It is used by companies to declare non-beneficial ownership of shares to the Registrar of Companies (ROC). This form ensures transparency in shareholding structures and prevents discrepancies between registered and beneficial ownership.

What is Form MGT-6?

Form MGT-6 is an electronic document submitted to the Ministry of Corporate Affairs (MCA) when a registered shareholder does not hold the actual beneficial interest in shares. The company must file this form within 30 days of receiving such a declaration from a registered member.

Key Elements of Form MGT-6:

• Mandatory under Section 89(6) of the Companies Act, 2013.

• Filed within 30 days of receiving a declaration.

• Ensures compliance by disclosing beneficial ownership to the ROC.

• Applicable to all companies with shareholding structures involving beneficial ownership.

Applicability of Form MGT-6

All companies in India, regardless of type, must file Form MGT-6 if they receive a declaration indicating that a registered shareholder does not hold the actual beneficial interest. This requirement applies uniformly across private limited, public limited, and listed companies.

Information Required for Filing Form MGT-6

When filing Form MGT-6, companies must provide the following details:

Company Information

• Corporate Identity Number (CIN)

• Company Name

• Registered Office Address

Share Details

• Number of Shares

• Distinctive Share Numbers (From & To)

• Type of Shares (Equity or Preference)

• Face Value and Paid-up Value of Shares

Registered Member Information

• PAN / Passport Number / Other Registration Number

• Name and Address

• Date of Birth / Incorporation

• Date of Entry in Register

• Declaration Date

• Date of Receipt of Declaration

Beneficial Owner Details

• Identification Number of Beneficial Owner

• Name and Address

• Date of Declaration

• Date of Receipt of Declaration

Steps to File Form MGT-6 Through MCA Portal

Filing Form MGT-6 is a seamless online process through the Ministry of Corporate Affairs (MCA) portal. Follow these steps:

1. Visit the MCA Website - Navigate to the eForm filing section.

2. Log in with Credentials - Use your registered account or create a new one.

3. Select eForm MGT-6 - Locate the correct form on the portal.

4. Fill in the Required Details - Enter company, shareholder, and beneficial ownership information accurately.

5. Attach Relevant Documents - Optional attachment of the declaration received from the registered member.

6. Preview and Submit - Review all entries before final submission.

7. Pay the Filing Fee - Fees depend on share capital, ranging from INR 200 to INR 600.

Post Submission

• Service Request Number (SRN) is generated for future reference.

• Challan for Payment Proof is issued upon successful submission.

• Acknowledgment Email is sent to the company's registered email address.

Penalty for Late Filing

Failure to file Form MGT-6 within the deadline incurs penalties as per the delay period:

Delay Period	Penalty
Up to 30 days	2x the normal fee
31 - 60 days	4x the normal fee
61 - 90 days	6x the normal fee
91 - 180 days	10x the normal fee
Above 180 days	12x the normal fee

Recent MCA Update: Companies (Management and Administration) Amendment Rules, 2024

On July 15, 2024, the Ministry of Corporate Affairs issued an update revising the Companies (Management and Administration) Rules, 2014. The existing Form MGT-6 is now being replaced with a new version to improve transparency and simplify the declaration process.

Conclusion

Filing Form MGT-6 is an important compliance requirement for companies to report discrepancies between registered and beneficial share ownership. Timely submission within 30 days of receiving a declaration ensures regulatory compliance and avoids penalties. Companies must provide detailed shareholder and beneficial ownership data, ensuring accuracy and transparency. With the latest MCA amendments, companies must stay updated on any changes in the filing process to maintain compliance. By following the correct filing process and adhering to deadlines, businesses can ensure smooth operations and avoid legal complications related to shareholding transparency.

FAQs

Q1. Who is required to file Form MGT-6?

Ans. Any company that receives a declaration stating that a registered shareholder does not hold the actual beneficial interest in shares must file Form MGT-6 with the ROC.

Q2. What is the deadline for filing Form MGT-6?

Ans. The company must file Form MGT-6 within 30 days of receiving the declaration from the registered shareholder.

Q3. What are the consequences of not filing Form MGT-6 on time?

Ans. Late filing attracts penalties based on the delay period, ranging from 2x to 12x the normal filing fee, depending on the number of days past the deadline.

Q4. What documents are required for filing Form MGT-6?

Ans. Companies need to provide details such as Corporate Identity Number (CIN), shareholding details, registered shareholder and beneficial owner information, and optionally attach the declaration received.

Q5. How can Form MGT-6 be filed?

Ans. The form is filed online through the MCA portal by logging in, selecting the form, filling in details, attaching necessary documents, paying the prescribed fee, and submitting the form.

Q6. Has there been any recent update regarding Form MGT-6?

Ans. Yes, as per the MCA update on July 15, 2024, the Companies (Management and Administration) Amendment Rules, 2024 have introduced a revised version of Form MGT-6 to enhance transparency and simplify the declaration process.