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May 9, 2021

Know 3 relaxation by MCA due to Covid

by Mahesh Mara in MCA Circular

Know 3 relaxation by MCA due to Covid

Due to Covid -19 situation Ministry of Corporate Affairs provided relaxation in MCA compliance

Keeping in view of the current COVID-19 situation, there were general circulars issued by the Ministry of Corporate Affairs (MCA) on May 03, 2021, in Companies Act, 2013/Limited Liability Partnership Act, 2008 in respect of:

  • Filing of MCA form for Companies and LLP
  • Creation and Modification of Charge
  • Holding of Board Meeting

Circular-1: Waiver late fees for filing of form after the due date (General Circular No. 06/2021- 03/05/2021)

Requests have been received from stakeholders for relaxation on levy of additional fees for filing of various forms under the Companies Act, 2013/LLP Act, 2008/Rules made thereunder due for filing during 1st April, 2021 to 31st May, 2021 in view of the COVID-19 related restrictions and disruption. The requests have been examined and taking into account the difficulties which have arisen due to resurgence of COVID-19 pandemic, it has been decided to grant additional time up to 31st July, 2021 for companies/LLPS to file such forms (other than a CHG-1 Form, CHG-4 Form and CHG-9 Form) without any additional fees.

Accordingly, no additional fees shall be levied up to 31st July, 2021 for the delayed filing of forms (other than charge related forms referred above) which were/would be due for filing during 1st April, 2021 to 31st May, 2021. For such delayed filings up to 31st July, 2021 only normal fees shall be payable.

The above circular can be summarised as follows:

S. NoFormsComplianceExtended Due DatePrevious due date
1MSME-1For reporting dues to MSME exceeding 45 days, if any on a half-yearly basis31st July 202130th April 2021
2FC-4Annual Return of Foreign Company31st July 202130th May 2021
3LLP Form-11Annual Return to be furnished31st July 202130th May 2021
4DPT-3Return of Deposits31st July 202130th June 2021
5Form CFSSApplication for issue of immunity certificate under the Companies Fresh Start Scheme (CFSS), 202031st July 202130th June 2021

Circular-2: Relaxation of filing forms for Creation and Modification of charge (General Circular No. 07/2021 dated: 03/05/2021)

On account of the resurgence of COVID-19 pandemic, representations have been received in this Ministry requesting relaxation of timelines related to filing of certain charge related forms. The representations have been examined and the Central Government has, in exercise of its powers under section 460 read with section 403 of the Companies Act, 2013 (Act) and the Companies (Registration Offices and Fees) Rules, 2014, decided to allow relaxation of time and condone the delay in filing forms related to creation/ modification of charges.

Ministry of Corporate Affairshas provided relaxation in respect of filing of forms of creation and modification of charge between 01.04.2021 to 31.05.2021. As per Section 77 of Companies Act, 2013 form CHG-1 and CHG-9 relating to Creation and Modification of Charge need to be filed in a maximum of 120 days from the date of creation or modification of charge.

The above circular can be summarised as follows:

S. NoSituationsTimelinesExplanation
1Situation 1: The date of creation and Modification of Charge is before April 2021.The period between 1st April 2021 till 31st May 2021 shall not be reckoned (calculated) for the purpose of filing the form.In this case, the first day after 31st March 2021 shall be 1st June 2021.
2Situation 2: If the date of creation or modification is between 1st April 2021 and 31st May 2021The period between 1st April 2021 till 31st May 2021 shall not be reckoned (calculated) for the purpose of filing the form.In this case, the first day after 31st March 2021 shall be 1st June 2021.

The Circular shall not apply in case:

  • When the form has already been filed before the date of issue of this Circular.
  • The timeline for filing the form is already expired prior to 01.04.2021.
  • Filing of form CHG-4 for the satisfaction of charge.

The above circular has provided great relief to all the Companies and LLPs registered under the Companies Act, 2013 & Limited Liability Partnership Act, 2008 by the MCA.

Circular – 3: Maximum Gap between two Board Meetings under section 173 of the Companies Act, 2013 (General Circular No. 08/2021 – dated: 03/05/2021).

In view of the difficulties arising due to resurgence of Covid-19 and requests received from stakeholders, it has been decided that the requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (120 days) stands extended by a period of 60 days for first two quarters of Financial Year 2021-22. Accordingly, the gap between two consecutive meetings of the Board may extend to 180 days during the Quarter — April to June 2021 and Quarter —July to September, 2021, instead of 120 days as required in the Companies Act, 2013.

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