Economic Ministry defers company annual fees till December

Economic Ministry defers company annual fees till December

Ministry of Economic Development on Wednesday extended the period during which companies are required to pay annual fees to December 31, devoid of additional charges.

The decision to push back the deadline was granted as a result of the ongoing COVID-19 pandemic and subsequent global economic regressions.

The Companies Act mandates payment of the annual fee by all companies as well as granting power for the Registrar of Companies to suspend all operations by a company if the annual fee is not paid by March of every year.

Moreover, the bill authorizes the Registrar to dissolve companies failing to pay the annual fee by May.

Furthermore, the bill also gives the right to the Registrar of Companies to dissolve companies that fail to submit the annual statistical reports as well as the annual reports of directors and auditors.

Private companies are required to pay MVR 2,000 as the annual fee while public companies are required to pay MVR 10,000. Failing to meet the deadline will result in an MVR 1,000 fine if paid within the month of April, while a MVR 2,500 penalty will be collected for payments made after April.