The new financial year 2020-21 has started today. It is a testing time for all businesses across the world on account of the Coronavirus lockdown. We are all working from home and available to support our clients.
In an effort to give a fresh start to existing companies and LLPs, the Government has unveiled schemes for compliance regularization. The scheme will provide complete penalty waiver and prosecution immunity for the Directors & promoters. Hence, we request you to use this golden opportunity to regularize any pending compliance at the earliest.
Companies Fresh Start Scheme 2020
Companies can file all overdue compliance without any penalty, get immunity from prosecution under this scheme. Lapses in Auditor appointment, MCA annual return filing and other statutory filings can now be done without any penalty. Further, once the compliance is regularized, the Directors can continue to maintain compliance or file for dormant status or apply for strike-off. If compliance is not regularized under this scheme, prosecution may be initiated by the Registrar against defaulting companies. Companies that avail benefit under the scheme will be provided a discharge certificate from prosecution. (Know more)
LLP Settlement Scheme
Similar to the Fresh Start scheme, LLPs that have defaulted in any compliance like filing of LLP agreement, Annual Return, etc., can file overdue returns without any penalty under the LLP Settlement Scheme 2020. Prosecution immunity and penalty waiver for LLPs is available.
DIN KYC ComplianceFinally, DIN holders marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web are now allowed to do the compliance without any penalty and regularize compliance.
Regularizing compliance for a defaulting company or LLP involves various steps including bookkeeping, preparation of accounts, reconciliation of data, obtaining NOC in some cases, preparation of board resolutions, signing of annual return, filing of returns and more for each year of operation. Hence, we request you to begin the compliance regularization process at the earliest to ensure the timelines provided in the scheme are met. Failure to meet the scheme deadline could lead to penalty in lakhs and further action.
Hence, in case of any question or if you require any assistance, please reach out to me at the earliest. We will be helping clients on a first come-first serve basis – as we also are only able to help a limited number of customers.