The Fresh Start scheme and modified LLP Settlement Scheme incentivise compliance and reduce compliance burden during the unprecedented public health situation.
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.
In pursuance of Govt. of India’s efforts to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, Ministry of Corporate Affairs (MCA) , has introduced the “Companies Fresh Start Scheme, 2020” pic.twitter.com/rAEo6rprC7
— Ministry of Finance ???????? #StayHome #StaySafe (@FinMinIndia) March 30, 2020
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.