Exemptions for Companies & LLPs through MCA Circular No. 11/2020


Special measures under companies act, 2013 and limited liability partnership, 2008 in view of covid-19 outbreak

General Circular No. 11/2020 Dated 24th March, 2020 (Ministry of Corporate Affairs)

1. In order to reduce the compliance burden including financial burden of the companies/LLP and to make good start:

No additional fees shall be charged for late filing during a moratorium period from 1st April to 30th September 2020 for any return, documents or forms required to filed in MCA-21.

2. As provided in section 173 of the Companies Act, not more than 120 days shall intervene between two consecutive board meetings:

Due to COVID-19 epidemic, the period of holding meetings of board stand extended by 60 days till next two quarters i.e.,till 30th September, 2020. Hence, gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters.

3. The Companies (Auditor's Report) Order,2020 applicability:

Applicable from the financial year 2O2O-2O21 instead from financial year 2019-20.

4. As per Para Vll (1) of Schedule lV to the companies Act 2013,Independent Directors are required to hold at least one meeting without the attendance of Non-independent directors and members of management:

For the financial year 2019-20, if the Independent director of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The independent director, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

5. As per section 73(2) of companies Act 2013, companies has to create the deposit repayment reserve of 20% of deposits maturing during the financial year before 30th day of April:

Above date extended till 30th June, 2020.

6. As per 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:

Above date extended till 30th June, 2020.

7. As per section 10A of the Companies Act 2013, new companies are required to file a declaration for Commencement of Business within 180 days of incorporation:

An additional period of 180 more days is allowed for this compliance.

8. As per section 149 of the Companies Act, 2013 , Every company shall have atleast one director who stays In India for a total period of not less than 182 days during the financial year:

For 2019-2020, in case of violation, it shall not be treated as non-compliance.

SOURCE :

http://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf