State MCA Minister Showcases Major Steps That Doubled New Companies’ Incorporation
Worth Mentioning here that in the wake of the Corona wave, The Ministry of Corporate Affairs has done a commendable job by creating a conducive atmosphere due to which 36,191 new companies were incorporated in merely 3 months from April to June 2021.
As compared to the same timespan in the previous year i.e. April to June 2021, 18,968 new companies were registered. Consequently, there is an increase of 17,223 new companies on the list. The above-mentioned facts and figures were stated by the Minister of Corporate Affairs Shri Rao Inderjit Singh while replying to a question put up in the Lok Sabha yesterday.
The aforesaid minister highlighted the following steps that were taken by it to create a conducive environment for the registration of new companies even during the Corona pandemic:
First up, The Companies Fresh Start Scheme, 2020 was launched by the ministry during the period from 1.4.2020 to 31.12.2020 with the objective of allowing the filing of the belated documents in the MCA 21 registry and that too without any additional fees. The above-mentioned has also provided immunity to the companies from the legal proceedings.
As per the records, 47,3131 Indian companies and 1,065 foreign companies have benefitted by making use of CFSS, 2020 scheme while filing their pending documents.
Considering the corona wave, the Ministry has granted the relaxation on the levy of the additional fees for companies /LLPs in filing certain categories of firms.
Further, the Ministry has granted the relaxation on the levy of additional fees for the companies/LLPs in the filing of certain forms.
Till June 30,2021, those companies have been permitted to organize Extraordinary General Meetings(EGM) via video conferencing or other audiovisual means that are complemented with e-voting facility or voting through registered emails.
Considering the difficulties during and after the Corona pandemic, the Ministry through General Circular bearing number 7/2021 and dated 3.5.2021 has granted the relaxation of timelines and has condoned the delay in filing the forms (CHG-1 Form and CHG-9 Form)
As per Company law, the compulsory requirement of holding the meeting of the Board of the Companies within the intervals that are mentioned in section 173 was extended by 60 days
The Companies (Indian Accounting Standards) Rules, 2015 has been amended through a notification that is dated 18.06.2021 to extend the benefits of Covid connected rent concession that were implemented in the last year from June 30,2021 to June 30, 2022.
The Ministry has through amendments in the Companies (Appointment & Qualification of Directors) Rules, 2014 has extended the period during which independent directors might apply online for the inclusion of their names in the databank for the independent directors to 13 months from December 1, 2019 onwards.
Not obeying the compliance of the minimum residency in home country i.e. India for a period of at least 182 days by at least one director has been eased.
The last date of the submission of the Cost Audit Report has been extended by MCA till December 31, 2020.
The time that is permitted to auditors and the Audit firms for filing the NFRA-2 form to the NFRA has been extended by 270 days.
Yash Bapna (Ex-employee)
I hold a degree in law, a diploma in mass communication, and a degree in management. Though I am a lawyer by profession, but writing has always been one of the things that I'm passionate about.
