Due to the lockdown and economic disruptions, Government is taken the following measure for providing relief to Companies and LLP in terms of compliance and penalty.
1. The government will not charge any late filing fee to companies for any form filing during the period April 1, 2020 to Sept 30, 2020. Hence the pending LLPs which have not filed the annual return forms and any form not filed till date can be filed without a single Rupee penalty. Here the LLPs can have a fresh start.
2. The mandatory requirement of holding Board meeting is extended by 60 days till next two quarters.
3. Caro 2020 will be applicable from FY 2020-21. It is not applicable for FY 2019-20.
4. It will not be considered as a violation if Independent directors if independent directors have not been able to hold meetings for FY 2019-20.
5. Original date for creating deposit repayment reserve: 30th April, 2020. New date: 30th June, 2020. Deposit reserve is a reserve to be created for deposits maturing during that financial year. It should be 20% of the total deposits maturing.
6. Commencement of business certificate can be done within one year of company incorporation.
7. Non-compliance of minimum residency in India for a period of at least 182 days by at least one director will not be considered as violation for FY 2019-20