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ICAI issues FAQs on LLP Settlement Scheme, 2020 and Company Fresh Settlement Scheme 2020

LLP Settlement Scheme- Taxscan

The Institute of Chartered Accountants of India ( ICAI ) has issued Frequently Asked Questions (FAQs) on LLP Settlement Scheme, 2020 and Company Fresh Settlement Scheme 2020.

The Ministry of Corporate Affairs in pursuance of the Government of India’s efforts to provide relief to law-abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, has introduced the “Companies Fresh Start Scheme, 2020” and revised the “LLP Settlement Scheme, 2020” which is already in vogue to provide a first of its kind opportunity to both companies and LLPs to make good any filing related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity. The Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1st April, 2020 and ending on 30th September 2020.

Further, the scheme gives an opportunity to inactive companies to get their companies declared as ‘dormant company’ under section 455 of the Act by filing a simple application at a normal fee. The said provision enables inactive companies to remain on the register of the companies with minimal compliance requirements. It may kindly be noted that the immunity is only against delayed filings in MCA 21 and not against any substantive violation of the law.

ICAI has also prepared and issued FAQs on the Companies Fresh Start Scheme and LLP Settlement Scheme, 2020 (Original and Modified) for the benefit of its members and other stakeholders that are uploadedFAQs on ICAI website.

FAQs on the Companies Fresh Start Scheme are available here.

LLP Settlement Scheme, 2020 (Original and Modified) are available here.

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