Ministry of Corporate Affairs (MCA) has announced the extension of the Companies Fresh Start Scheme, 2020 and the LLP Settlement Scheme, 2020 till 31st December 2020 due to the COVID-19 pandemic.
The MCA has introduced the new scheme, which is known as the Companies Fresh Start Scheme, 2020, that was valid from the date of April 1, 2020, to 30th September 2020, which had the purpose for enabling the companies to clear their previous defaults.
Both the schemes have provided the beneficiaries of the schemes a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the period starting from 1st April 2020 and ending on 30th September 2020.
And have provided them with immunity from penal proceedings, including against imposition of penalties for late submissions and the additional time for filing appeals before the concerned Regional Directors against the imposition of penalties, if it’s already imposed.
The ministry has issued the circular because of the large scale disruption caused by the COVID-19 pandemic so, after proper examination, it has decided to extend both the schemes till December 31, 2020.
With Warm Regards,