MGT-7 vs. MGT-7A: Which Annual Return Form Fits Your Company in 2026?

Filing the correct annual return form is a crucial compliance step for companies in India. With the introduction of MGT-7A, many small companies now have a simpler option to report their annual returns. But which form fits your company’s profile in 2026? This guide compares the standard MGT-7 and the simplified MGT-7A, explains the criteria for small companies, and clarifies who must file the detailed MGT-7.

Comparison of MGT-7 and MGT-7A forms, highlighting differences

Understanding MGT-7 and MGT-7A

The Ministry of Corporate Affairs (MCA) requires companies to file annual returns to provide details about their shareholders, directors, and financial status. The MGT-7 form is the traditional, detailed annual return form applicable to most companies. In contrast, MGT-7A is a simplified form introduced specifically for small companies to ease compliance.

What is MGT-7?

MGT-7 is a comprehensive form that requires detailed information about the company’s shareholding pattern, indebtedness, directors, and other statutory details. It applies to:

• Public companies

• Section 8 companies (non-profit companies)

• All companies that do not qualify as small companies

  
  

What is MGT-7A?

MGT-7A is a shorter, less complex form designed for small companies. It requires fewer details, focusing mainly on basic company information and shareholder data. This form reduces the compliance burden on smaller entities.

Defining a Small Company for MGT-7A Eligibility

To qualify for filing MGT-7A, a company must meet the small company criteria as defined under the Companies Act, 2013. The criteria are:

• Paid-up capital of ₹4 crore or less

• Annual turnover of ₹40 crore or less

  
  

If a company meets both these conditions, it can opt to file the simplified MGT-7A form.

Examples of Small Companies

• A private limited company with ₹3 crore paid-up capital and ₹35 crore turnover

• A startup with ₹1 crore capital and ₹10 crore turnover

  
  

These companies benefit from the simplified reporting requirements of MGT-7A.

Who Must File the Detailed MGT-7?

Certain companies must file the detailed MGT-7 regardless of their size:

• Public companies: These companies have a wider shareholder base and are subject to stricter disclosure norms.

• Section 8 companies: Non-profit companies registered under Section 8 of the Companies Act must file MGT-7.

• Companies that do not meet the small company criteria (paid-up capital above ₹4 crore or turnover above ₹40 crore).

  
  

For example, a public company with ₹2 crore capital but ₹50 crore turnover must file MGT-7, not MGT-7A.

Key Differences Between MGT-7 and MGT-7A

Feature	MGT-7	MGT-7A
Applicability	All companies except small companies	Only small companies
Length and Complexity	Detailed and comprehensive	Simplified and shorter
Information Required	Shareholding pattern, directors, indebtedness, etc.	Basic company and shareholder details
Filing Deadline	Within 60 days from AGM	Same as MGT-7
Penalty for Late Filing	₹100 per day of default	₹100 per day of default

How to Decide Which Form to File

1. Check your company type

   Is your company public or a Section 8 company? If yes, file MGT-7.

   
   

2. Check paid-up capital and turnover

   If your company is private and meets the small company criteria (paid-up capital ≤ ₹4 crore and turnover ≤ ₹40 crore), you can file MGT-7A.

   
   

3. Review your company’s financials

   Confirm the latest figures for paid-up capital and turnover before filing.

   
   

4. Consider compliance ease

   Small companies benefit from the simpler MGT-7A form, reducing time and effort.

   
   
   
   

Practical Tips for Filing Annual Returns in 2026

• Maintain accurate records throughout the year to avoid last-minute confusion.

• Verify financial thresholds annually to know if you qualify for MGT-7A.

• File on time to avoid penalties. The deadline is 60 days from the Annual General Meeting (AGM).

• Use MCA’s online portal for filing to ensure smooth submission.

• Consult a company secretary or professional if unsure about eligibility or filing requirements.

  
  

Common Questions About MGT-7 and MGT-7A

Can a company switch between MGT-7 and MGT-7A?

Yes, if a company’s financials change and it no longer meets the small company criteria, it must file MGT-7. Conversely, if it qualifies as a small company, it can opt for MGT-7A.

Are there penalties for incorrect filing?

Yes, late filing attracts a penalty of ₹100 per day. Filing the wrong form may lead to compliance issues and notices from MCA.

Do foreign companies file these forms?

Foreign companies registered in India follow different compliance rules and generally do not file MGT-7 or MGT-7A.