March 31, 2020
Key highlights of Circulars issued by MCA on March 30, 2020
1. Companies Fresh Start Scheme, 2020
The Ministry of Corporate Affairs, has introduced the “Companies Fresh Start Scheme, 2020” which is a first of its kind opportunity to companies to make good any filing related defaults, including failure to file Annual Returns, irrespective of duration, and make a fresh start as a fully compliant entity.
The scheme provides a one-time waiver of additional filing fees for delayed filings during the currency of the Scheme, i.e. from 1st April 2020 to 30th September 2020.
2. Amendment to LLP Settlement Scheme, 2020
In line with extension of Section 460 of Companies Act, 2013 for condonation of delay to LLPs vide G.S.R. 59 (E) Dated 30th January 2020, MCA had notified LLP Settlement Scheme, 2020 which came into force on 16th March 2020.
Further, MCA vide its circular dated 30th March 2020, has made certain amendments to the original scheme, which shall come in force from 1st April 2020. The highlights of the amendments are:
- Extending the cut-off date for the applicability of the scheme to 31st August 2020 as against original date of 31st October 2019.
- Waiver of any kind of additional fees as against Rs. 10 per day subject to a maximum of Rs. 5000 per document in the original scheme.
- Inclusion of definition of “belated documents” to include all documents due for filing as against only Form 3, Form 4, Form 8, Form 11.
- Extension of the validity of the scheme from 13th June 2020 to 30th September 2020.
Aforesaid circular is integrated in our free-to-use website ca2013.com for your ready reference.