Govt brings schemes for 'fresh start' for cos, LLPs amid Covid1-9 outbreak

Seeking to provide a “fresh start” for businesses and limited liability partnerships (LLP), the government extended the deadline for submitting deposits on Monday, September 30, without late fees.

In addition, the entities would benefit from immunity from criminal prosecution in the event of delay in submitting the required documents.

The introduction of a new start-up plan for businesses and the revision of the settlement system for LLPs are part of the context of the coronavirus pandemic which has also resulted in the interruption of commercial activities.

In a statement, the Ministry of Commercial Affairs said the plans were part of efforts to provide relief to law-abiding businesses and LLPs in the wake of COVID-19.

“The fresh start program and the modified LLP settlement system encourage compliance and reduce the burden of compliance during the unprecedented public health situation caused by COVID-19,” he said.

Both plans provide a “one-time exemption from additional filing fees for late filings” during the period from April 1 to September 30.

The ministry implements the Companies Act and the LLP Act.

“In addition to allowing companies longer periods of time to comply with various filing requirements under the Companies Act, 2013 and the LLP, 2008, the plans significantly reduce the financial burden associated with them, especially for those with long-standing faults, giving them the opportunity to make a “fresh start”.

“Both regimes also contain provisions for immunity from criminal prosecution, including the imposition of sanctions in the event of late submission, and also provide for additional time to file appeals to the regional directors concerned against the imposition sanctions, if they are already imposed, “the statement said.

However, immunity would only be granted against delays in filing in the MCA 21 portal and not against any substantial violation of the law.

The necessary deposits with the ministry are made via the MCA 21 portal.

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