Every company registered in India under the Companies Act, 2013 must comply with a series of annual filings to maintain legal transparency and corporate governance. Among these filings, AOC-4 and MGT-7 are two of the most essential forms submitted to the Ministry of Corporate Affairs (MCA). Although companies often treat these forms as routine tasks, many still struggle to understand the clear distinction between them.
This article explains the difference between AOC-4 and MGT-7, why they are filed, what each form contains, and how they together form the backbone of statutory compliance for companies in India.
Introduction
The annual filing of documents is a legal requirement rather than a simple task that businesses complete once a year. As a legally binding document, AOC-4 and MGT-7 help establish the company’s ability to operate within a legally acceptable manner and provide an opportunity for the public to hold businesses accountable for how they operate.
Companies filing annual returns must understand that there are two different forms: AOC-4 and MGT-7. While both forms are part of the annual filing process, they each provide different types of information. AOC-4 focuses on the financial statements, whereas MGT-7 focuses on the company’s annual return, a comprehensive record of its shareholding and governance structure.
What is AOC-4?
About AOC-4
AOC-4 is the form used by companies to file their financial statements and related documents with the Ministry of Corporate Affairs. It gives a clear picture of a company’s financial health for the financial year, covering everything from profit–loss data to cash flow and balance sheet details. The form ensures that the financial statements adopted at the Annual General Meeting (AGM) are officially recorded with the government.
Purpose
The primary objective of AOC-4 filing is to maintain financial transparency. It enables regulatory authorities, creditors, investors, and other stakeholders to assess the company’s financial performance. For this reason, AOC-4 must be filed even if a company has not carried out any business during the year.
What AOC-4 Contains
AOC-4 includes key financial documents such as –
- Balance Sheet
- Profit and Loss Statement
- Director’s Report
- Auditor’s Report
- Notes to Accounts
- Cash Flow Statement (if applicable)
Additionally, if the company follows Indian Accounting Standards (Ind-AS), it must file AOC-4 CFS or AOC-4 XBRL, depending on its category.
Due Date of AOC-4
- AOC-4 must be filed within 30 days of the conclusion of the AGM.
- If a company fails to hold an AGM, it must still submit the form within 30 days from the date on which the AGM was supposed to be held.
What is MGT-7?
About MGT-7
MGT-7 is the annual return form filed by every company to provide details about the company’s shareholding, directors, meetings, and overall corporate structure. This form is more governance-oriented than financial. It reflects how the company was managed throughout the year.
MGT-7 filing is mandatory for all companies, while certain classes of companies, like small companies and OPCs, file MGT-7A, which is a simplified version.
Purpose
The objective of MGT-7 is to maintain a record of the company’s ownership and management. It helps regulators track changes in the company’s structure, including share transfers, appointment or resignation of directors, and key management details.
What MGT-7 Contains
MGT-7 captures detailed information relating to –
- Registered office and principal business activities
- Share capital structure
- Debenture details
- Shareholding pattern
- List of shareholders and debenture holders
- Directors and Key Managerial Personnel
- Board meetings and attendance
- Details of penalties, fines, and compounding
- Certifications from company secretary (if applicable)
Due Date of MGT-7
- MGT-7 must be filed within 60 days of the conclusion of the AGM.
- In the case of OPCs and small companies filing MGT-7A, the due date remains the same.
Key Differences Between AOC-4 and MGT-7
To understand the distinction clearly, here is a detailed comparison –
| Basis | AOC-4 | MGT-7 / MGT-7A |
| Nature of Form | Filing of financial statements | Filing of annual return |
| Focus Area | Financial reporting and performance | Governance, ownership, and compliance structure |
| What It Contains | Balance sheet, P&L, auditor’s report, notes | Shareholding, management, meetings, and legal compliance |
| Mandatory for | All companies (various versions) | All companies (MGT-7A for OPC/small companies) |
| Filing Due Date | 30 days after AGM | 60 days after AGM |
| Filing Type | Financial transparency | Corporate governance compliance |
| Consequences of Delay | Heavy additional fees per day | Additional fees and potential penalties |
| Attachments Required | Financial documents, director’s report | List of shareholders, meeting details, certifications |
| Regulatory Purpose | Evaluates financial health | Tracks company ownership and control |
Both forms complement each other and ensure that the MCA receives complete annual details of the company from both financial and governance perspectives.
Why Both AOC-4 and MGT-7 Are Important for Annual Compliance?
While the forms differ in nature, neither is optional. Together, they ensure the government maintains a reliable record of a company’s operations.
AOC-4 helps regulators and stakeholders understand –
- How the company has performed financially
- Whether proper accounting standards are followed
- Whether the company is solvent and stable
- Whether the board has presented accurate financial information
On the other hand, MGT-7 provides a transparent picture of –
- The company’s ownership and shareholding
- How many meetings took place, and who attended
- Any changes in the company’s leadership
- Whether the company has complied with all statutory provisions
These filings build trust among investors, lenders, and regulatory bodies. Non-compliance can lead to heavy additional fees per day and future legal complications.
Conclusion
In India, the Annual Compliance requirement for a company is made up of two primary forms (AOC-4 and MGT-7), which provide details of a company’s financial statements and the corporate structure/governance information. Though separate forms serve different purposes, both forms together ensure the Company meets the legal requirements of Transparency, Accountability and Compliance.
Understanding the difference between the two forms allows a Start-up, Private Company, or even a Dormant Entity to help in the easier management of their compliance requirements when they are compliant with both filing deadlines in a timely manner. Furthermore, by having their AOC-4 and MGT-7 filed on time, Companies can avoid penalties and demonstrate their commitment to ethical and responsible business practices.
