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SEBI & Corporate Laws

Relaxations for the Companies and LLPs to make good any filing related defaults

Relaxations for the Companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity by 30th September, 2020

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 measured 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 Schemes, apart from giving longer timelines for corporates to comply with various filing requirements under the Companies Act 2013 and LLP Act, 2008, significantly reduce the related financial burden on them, especially for those with long standing defaults, thereby giving them an opportunity to make a “fresh start”.

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.

FAQs on both the Schemes are available at the following links:

FAQs Company Fresh Start Scheme, 2020

FAQs LLP Settlement Scheme, 2020

 

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