As all of you are aware that Ministry of Corporate Affairs (MCA) issued advisory on preventive measures to contain spread of COVID-19 to all Chairman, Managing Director and Chief Executive Officer. With respect of it, they will deploy “Company Affirmation of Readiness towards COVID-19 (CAR) web-based form on 23rd March, 2020 to ensure that “work from home” policy is followed by all the LLPs and Companies to show their readiness against fight with COVID-19. MCA circular is short and not descriptive about how to file Form Practically and what measures should be taken. Hope all stakeholders will get answer of their query from following FAQs :-

1. Whether circular is introduced under provisions of the Companies Act, 2013?

No, This circular is not introduced under any provisions of the Companies Act, 2013. The purpose of the circular is to ensure that “work from policy “ is followed by the all Companies and LLPs.

2. Digital Signature will be required to file Form CAR ?

  No, Digital Signature will not require for file this web form.

3. Who will require to file this Form CAR?

All the Companies and LLPs are required for this form.

4. Who will file Form CAR on behalf of the Company?

   Company Secretary, Managing Director or Director whoever is authorised by the     Company or LLP to file Form with MCA has to file Web form.

5. Is it mandatory that Work form Policy adopted in written and approved by Board of Directors?

No, It is not mandatory that Work form Policy adopted in written and approved by Board of Directors. It mean that Companies and LLPs have to take necessary steps and provide facility for work from home.

6. What is the validity of the Work from Home Policy?

Presently, it will be valid till 31ST March, 2020.  

7. Is there any filing fee for Form CAR?

As such, MCA has not presubscribed any filing fees for the Form CAR. Assuming according to current situation, there will not be any filing fees.

8. What is timeline for filing of Form?

MCA will deploy form on the 23rd March and it has to be filed on the same day.

9. What all information will be required for filing this form CAR?

Companies/LLP has required for provide following information’s.

  • CIN/ FCRN/ LLPIN/ FLLPIN
  • Name of the company/ foreign company/ LLP/ Foreign LLP
  • Whether the company/ LLP is in compliance of COVID 19 Guidelines?
  • Authorised Signatory of the company/ LLP
  • DIN/ PAN/ Membership No. of the Authorised Signatory
  • Mobile No.
  • OTP

10. How the Form CAR will be required to file?

Once all the information as mentioned in the FAQ 7 will be filed and it has to be authenticated by the OTP on the mobile of the person who is filing the Form.

11. Is there any penalty for non-filing of this Form CAR?

No, there is no any penalty for non-filing of this Form.

12. Is the format provided by the MCA of the Form CAR?

Yes, It is as below

Form - Comapy Affirmation of Readiness (CAR)-2020

Disclaimer: – The Author have taken utmost care while drafting the article but it may occur that certain error creeps in. This article is for academic purpose and should not be treated as a professional advice. The readers are advised to refer the Bare Acts and Rules before making any judgment. The Article has been prepared on the basis of information available on the MCA website as on date.

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