The Ministry of Corporate Affairs (MCA) has introduced the “Companies Fresh Start Scheme, 2020”. The new scheme has been introduced to provide relief to law abiding companies and the Limited Liability Partnerships (LLPs) amid COVID-19 pandemic. MCA has also revised “LLP Settlement Scheme, 2020”.
The Fresh Start scheme and revised LLP Settlement Scheme stimulates compliance and lessen the compliance burden during the unprecedented public health situation triggered by COVID-19. Both the schemes will also provide longer timelines for corporates to obey the various filing requirements under the Companies Act 2013 and LLP Act, 2008.
About LLP Settlement Scheme, 2020:
The LLP Settlement Scheme, 2020 facilitates chances to companies as well as LLPs to make good any filing related defaults, irrespective of duration of default, and enables them to make a fresh start as a fully compliant entity.
Important takeaways for all competitive exams:
- Union Minister of Corporate Affairs: Nirmala Sitharaman.