In line with government’s initiative to ease of doing business & good corporate governance, the Ministry of Corporate Affairs(MCA) has come up with the ‘Companies Fresh Start Scheme 2020’ to enable defaulting companies to make good of any filing-related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity. Similarly, there is a scheme for LLPs called “LLP Settlement Scheme, 2020” and details of the scheme are enumerated as below:
Reliefs under both the Schemes as under :
Conclusion:
Once the scheme is closed, Designated Authority shall take necessary action under the Act against the defaulting companies or LLP who have not availed this scheme and are in default in filing the pending documents in a timely manner.
The Scheme is being introduced in pursuance of the Government’s objective of providing greater Ease of Living to the citizens of the country and is expected to provide significant relief and a window of opportunity for LLPs and Companies to abide by the Law & conduct business accordingly.
Article by – CA Vishal Kumar Singh & CS Pooja Dandwani