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 important parametrical compliance requirements in this respect is MCA E-Form MR-1, which is filed to record the appointment of a managerial person – 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 appointing an MD, WTD or Manager in the company.
- Private Companies 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, a company must file MR-1 within 60 days from the date on which the person was appointed. Failure to do so may subject the company to penalties.
Rule 3 of Companies (Appointment and Remuneration) Rules, 2014
In this rule, public companies are required to file MR-1 notifying the MCA 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 able to be less than 21 years and not more than 70) unless a resolution passed in the General Meeting orders otherwise.
- The appointment will conform to articles of association (AOA) of the Company.
- The company has obtained the necessary board and shareholder approvals.
- 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 Copy of Resolution passed by the Board for the appointment.
- Certified True Copy of Shareholders’ Resolution passed at the General Meeting.
- Conditions of Service for the Company-Wide appointment incorporated remuneration detail thereof.
- Employment Agreement or Appointment Letter Copy.
- A declaration 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 own 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 the MCA Forms Section and download E-Form MR-1’s newest version from MCA’s website.
Step 3: fill in required details
- Corporate 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 mistake mistakes. An incorrect submission is to be faced with the form being rejected or penalties levied.
Step 6: The E-Form MR-1 must be digitally signed by:
- Managing Director or Director authorized by the board.
- Company Secretary (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 statusIf approved, the MCA will acknowledge their request and provide a confirmation e-mail to the relevant parties involved.
Common Errors in Filling 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 to submit articles without the resolutions because they are not left in full.
- Do Not Miss the 60-Day Deadline — Failure to report Form MR-1 within 60 days of appointment is illegal.
- Unauthorized Digital Signatures — When signing the country’s online company forms, use a valid DSC registered with MCA.
Penalties for Failure to Comply
If a company fails to file MCA E-Form MR-1 within the required 60 days, it may be penalized by Section(450) of Companies Act of 2013:
- A fine of up to ₹50,000 can be imposed.
- In addition, if it fails to comply, further penalties of ₹500 per day are imposed on the company until its directive is obeyed.
Compliance with MR-1 suffices, but any company that hopes to avoid penalties (450) needs careful documentation and a prompt presentation.
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Frequently Asked Questions
1. What is 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 a sixty-day period 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 chop 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.rets.
