As per the Companies Act 2013, the Ministry of Corporate Affairs (MCA) requires companies to conform to a number of different categories of filing requirements.’ One of the essential parametric compliance requirements in this respect is the MCA E-Form MR-1, which is filed to record the appointment of a managerial person, such as a Managing Director (MD), Whole-Time Director (WTD), or Manager, in a company.
Online filing of Form MR-1 enables greater transparency, compliance with regulations, and good corporate governance. Submission of the MCA E-Form MR-1 involves a number of key steps, from collecting the necessary documents to satisfying the eligibility criteria and then submitting the application via the MCA portal.
In this blog, we will discuss the procedure of MCA E-Form MR-1 filing, including eligibility, submission step-by-step, necessary documents, and compliance guidelines.
What is MCA eForm MR-1?
MCA E-Form MR-1 is a mandatory filing under Section 196 of the Companies Act, 2013, which is required if a company appoints or reappoints a Managing Director (MD), Whole-Time Director (WTD), or Manager.
Filing MR-1 ensures compliance with corporate governance norms, which is a crucial requirement for public and private limited companies.
Who Needs to File MCA e-Form MR-1?
Companies that need to file an MR-1 form include:
- Public Limited Companies appoint an MD, WTD, or Manager. In the private Companies, they are subsidiaries of public companies.
Legal Provisions Governing MCA e-Form MR-1
Companies Act, 2013 – Section 196
Section 196 of the Companies Act 2013 requires a company to file MR-1 within 60 days from the date on which the person was appointed. Failure to do so may result in companies being penalized.
Rule 3 of Companies (Appointment and Remuneration) Rules, 2014
Under this rule, public companies are required to file an MR-1 form with the MCA, notifying them about the appointment or reappointment of key managerial personnel.
Eligibility Criteria for Filing MCA e-Form MR-1
To file MCA E-Form MR-1, a company has to meet the following criteria:
- The management director, the whole-time director of a company, or its manager should meet the specified age requirements (not less than 21 years and not more than 70) unless a resolution passed in the General Meeting orders otherwise.
- The appointment will conform to the Articles of Association (AOA) of the Company.
- The Board has obtained the necessary approvals from both the Board and shareholders.
- Section 164 of the Companies Act 2013 contains no disqualification.
Documents Required for Filing MCA eForm MR-1
Before filing E-Form MR-1, make sure you have the following documents:
- Certified True Board Resolution passed by the Board for the Boardholders.
- Certified True Copy of Shareholders’ Assessed at the General Meeting.
- Conditions of Service for the Company-Wide appointment incorporated the remuneration details thereof.
- Employment Agreement or Appointment Letter Copy.
- A declaration that the appointee under Section 164 of the Companies Act 2013 is not disqualified.
- PAN and Aadhaar Card of the Appointed Managerial Personnel.
- Digital signature certificate
Step-by-Step Procedure for Filing MCA e-Form MR-1
Step 1: Log in to the MCA Portal
To start the E-Form MR-1 filing process, log into the MCA portal (www.mca.gov.in) with your credentials. Be sure to check that the Director Identification Number (DIN) as well as the Digital Signature Certificate on file with MCA are those of your qualified signatory.
Step 2: Download the E-Form MR-1
Access MR-1’s Forms, MR-1’s E-Form, DMCA’s newest, from MCA’s website. 3: Fill in the required details, including the Company Identification Number (CIN) of the company.
- Name and Address of the Company.
- Details of the Managerial Personnel Appointed (Name, Date of Birth, PAN, DIN).
- Effective Date of Appointment.
- Details of Remuneration and Terms of Appointment.
- Board Resolution and Shareholder Resolution Details.
Step 4: Upload the required supporting documents to validate the appointment.
Step 5: Review and verify the information
Check once again to avoid mistakes. An incorrect submission will result in the form being rejected or penalties being levied.
Step 6: The E-Form MR-1 must be digitally signed by:
- Managing Board or Director authorized by the Board
- Comptroller (CS) or Chief Financial Officer (CFO), if applicable.
Step 7: Upload and submit E-Form MR-1 to the MCA portal
After signing the MR-1 form with your Digital Signature, upload it to the MCA portal.
Step 8: Pay the prescribed fees
Pay the fee to ensure your application is successful
Step 9: When the submission is successful, MCA will generate an SRN (Service Request Number). You can use this to track your MR-1 filing status. If approved, the MCA will acknowledge their request and provide a confirmation e-mail to the relevant parties involved.
Common Errors in Filing MCA E-Form MR-1
- Incorrect DIN or PAN Details – Ensure that the details of the appointed MD, WTD, or Manager are accurate and match official records.
- The omission of resolutions — A common mistake is submitting articles without the resolutions, as they are not included in full.
- Do Not Miss the 60-Day Deadline — Failure to report Form MR-1 within 60 days of appointment is illegal. Unauthorised Signatures — When signing the country’s online communications, use a valid DSC registered with the MCA.
Penalties for Failure to Comply
If a company fails to file the MCA E-Form MR-1 within the required 60 days, it may be penalized by Section 450 of the Companies Act of 2013:
- A fine of up to ₹50,000 can be imposed.
- In addition, if it fails to comply, fines of ₹500 per day are imposed on the company until its directive is obeyed.
Compliance with MR-1 is sufficient, but any company that hopes to avoid penalties (up to $ 450) needs careful documentation and a prompt presentation.
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Frequently Asked Questions
1. What is the MCA E-Form MR-1 used for?
E-Form MR-1 is used to report the appointment of a Managing Director (MD), a Whole-Time Director (WTD), or a Manager to the MCA.
2. Who must file E-Form MR-1?
Refreshingly short: Public companies and private subsidiaries thereof may file MR-1 within sixty days from the date of appointment.
3. What happens if MR-1 is not filed within 60 days?
If it is not filed within the time, MR-1 gets fined Rs. 50,000 plus an additional charge of Rs. 500 per day.
4. Can MR-1 be filed for a private company?
Private companies do not need to file MR-1 unless they are a subsidiary of a public company.
5. What documents are needed for MR-1 filing?
Documents such as the Board and Shareholder Resolutions, Appointment Letter, PAN card, Aadhar, etc., and DSC of the person signing are required for MR-1.
