Fresh Start Scheme 2020: Companies can file pending forms, returns without late fees; make fresh start

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Updated: Mar 31, 2020 11:11 AM

The Fresh Start scheme and modified LLP Settlement Scheme incentivise compliance and reduce compliance burden during the unprecedented public health situation.

company fresh start scheme 2020, regulatory relief, nirmala sitharaman, mca, ministry of corporate affairsMCA has also introduced LLP Settlement Scheme to give relief to Limited Liability Partnerships. (Bloomberg image)

Modi government has announced yet another regulatory relief for the companies registered in India. The government has introduced a fresh scheme – Companies Fresh Start Scheme, 2020 – to make a fresh start on a clean slate. Under the scheme, companies can file their pending documents such as Annual Return and Finacial Statements without paying higher additional late fees. Adding to the Companies Fresh Start Scheme, the MCA has also introduced LLP Settlement Scheme to give relief to Limited Liability Partnerships.

“The Fresh Start scheme and modified LLP Settlement Scheme incentivise compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19,” said a statement by the Ministry of Corporate Affairs (MCA). The USP of both the schemes is a one-time waiver of additional late filing fees by the companies or LLPs with the RoC during the period starting from 1st April 2020 and 30th September 2020, it added.  However, the normal fee will be payable for filing the statutory compliance.

In the last week, it is the second time when the government has come up with relief on statutory compliance for the companies.  Earlier, Finance Minister Nirmala Sitharaman announced an extension in the deadline of Income Tax and GST filing.

Also Read | Discom waiver: Interest burden on power producers seen rising to Rs 8,500 crore

Meanwhile, in the wake of rising cases of Covid-19 in India, the government and RBI have announced a slew of measures in last week and no stone is left unturned in efforts to pass on the benefit to the companies and people. The Reserve Bank of India has also announced made announcements such as moratorium period to loan repayment, cut in repo rate, etc.

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