As we all know that COVID 19 is an unprecedented crisis and challenge which is currently being faced by the whole World. Amidst the spread of the pandemic and the imposition of lockdowns, there are various challenges before all the stakeholders in the corporate world.
In order to support and enable Companies and Limited Liability Partnerships (LLPs) in India to focus on taking necessary measures to address the COVID-19 threat, including the economic disruptions caused by it, the Ministry of Corporate Affairs has given several relaxations and Special measures have been provided to reduce their compliance burden and other risks.
The Ministry of Corporate Affairs in pursuance of the Government of India’s efforts in the wake of COVID 19, has introduced the “Companies Fresh Start Scheme, 2020” and revised the “LLP Settlement Scheme, 2020”.
The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1st April, 2020 and ending on 30th September, 2020.
Also to note that MCA has given relaxation that the DIN holders marked as “Deactivated” and companies marked as “ACTIVE non-compliant” can become compliant once again.
Other Relaxations are related to holding Board meeting/ AGM/ EGM through Video Conference, dispatch of notice for rights issue and Extension of Period/Days for Names Reserved and Re-submission of Forms
This is the time when the Companies and LLPs can utilize this opportunity given by the Government and they can make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
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