The Ministry has received several representations from the stakeholders requesting for the grant of one time opportunity, so as to enable them to complete all their pending compliances by filling necessary documents in the MCA – 21 registry including annual filling without being subject to higher additional fees on account of any delay.

General Circular no. of the scheme applicable for companies and LLP ‘s General Circular No. 11/2020 dated 24th March, 2020

General Circular No. 12/2020 dated 30th March, 2020

About the scheme
  • Provide an opportunity to make a fresh start condoning the delay in filling all the documents with the registrar
  • remove the additional fees
  • and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with these fillings.
Duration of the scheme Effective from 01.04.2020 till 30.09.2020
Applicability of the scheme
  • Defaulting Companies i.e a company which has made a default in filing of any document, statement, return etc.
  • Inactive Companies The defaulting inactive companies while filing belated documents can:

1. apply to get themselves declared as dormant companies by filing form e – form MSC – 1 at a normal fees.

2. Apply for striking off the name of the company by filing e – form STK – 2

Non – Applicability Of The Scheme Where any : –

  • Final notice for striking off the name of the company under section 248 of the companies act, 2013 has already initiated by the designated authority.
  • The company has made an application for striking off the name of the company from ROC
  • Companies amalgamated under the scheme of compromise & arrangement under the act;
  • The company applied for dormant status under section 455 of the companies act, 2013 before the scheme
  • Vanishing Companies;
  • Where any increase in authorised capital is involved i.e form SH – 7
  • In case of any charge related documents (CHG – 1, CHG – 4, CHG – 8 AND CHG – 9)
Special measures where order was passed but appeal could not be filled:
  • If the penalties was imposed by the adjudicating authority and no appeal has been filled by the concerned company and in any case if the date of the appeal lies between 1st march, 2020 to 31st may, 2020 (both days included), a period of 120 additional days shall be allowed w.e.f. the last date of appeal.
  • If the concerned companies avail the benefits of the scheme then such companies can also withdraw the appeal.
Issue of immunity under the scheme: By filling all the belated documents, statements, returns till 30th September, 2020 : –

  • the company has to file an E – form CFSS – 2020 within 6 month of the closure of the scheme.
  • No fees shall be charged for filling this form. and obtain immunity certificate.
Non eligibilty to obtain Immunity Certificate If : –

  • Any appeal is pending before the court of law
  • Management disputes of the company pending before the court of law or tribunal.
  • Matter of ordered conviction
  • An order imposing penalty has been made by the adjudicating authority and no appeal preferred against such order before the scheme has come into force i.e as on 1st April, 2020.
Effect of immunity: After granting the immunity, the concerned designated authority shall withdraw the pending proceedings before the concerned courts
Special Measures Under CA – 2013 and LLP ACT, 2008

 

  • No additional fees shall be charged for late filing of any documents, return, statement etc. with MCA – 21 during the moratorium period from 01st April to 30th September, 2020.
  • As per section 173 of CA – 2013 the mandatory requirement of holding the Board Meeting of the companies within the intervals mentioned i.e 120 days stands extended by a period of 60 days till 30th September. It means that the gap between two consecutive board meetings may extend to 180 days instead of 120 days.
  • The Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2O2O – 21 instead of being applicable from the financial year 2019 – 2020 as notified earlier.
  • As per Para Vll (1) of Schedule lV to the CA – 2013, at least one meeting of lndependent Directors (lDs) is required to hold in a financial year.

For the financial year 2019-20, if the lDs of a company is unable to hold such a meeting, the same shall not be viewed as a violation. The lDs,, may share their views amongst themselves through telephone or e – mail or any other mode of communication.

  • Requirement under section 73(2)(c) of Companies Act – 2013 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020 – 21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.
  • Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, may be complied with till 30th June 2020.
  • As per section 10A of Companies act, 2013 the newly incorporated companies are required to file a declaration for Commencement of business in e – form INC 20A within 180 days of incorporation which stands extended by a period of 180 days.
  • Non – compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 (3) of the CA – 13 shall not be treated as a non – compliance for the financial year 2019 – 20.
Conclusion: It’s a one time opportunity for all the defaulting companies and inactive companies to file their belated returns, documents and forms etc on or before 30th day of September, 2020 without any additional fees and obtain immunity certificate from the concerned authority.

About Author+CS Richa Mittal, a workaholic in nature, is an associate member of the Institute of Company secretaries of India since 2016. She is an independent corporate consultant. She possesses good professional experience for more than 4 years in secretarial field. She likes to research over different topics and pen them down. Recently love to post all the upcoming notification and circulars to keep the viewers updated.

For any further query free to contact us on E – mail: csrichamittal@gmail.com.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional. Please refer to the complete Terms & Disclaimer here. Terms & Disclaimer

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