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Ministry of Corporate Affairs relaxes certain deadlines and rules in light of the COVID

  • No penalty/delayed filing fees to be applicable for forms required to be filed from April 1, 2020 to September 30, 2020

  • Relaxation on minimum period for holding board meetings: As per the current provisions, a company is required to hold a minimum number of four meetings of board of directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board. This requirement has been relaxed for a period of 60 days till next 2 quarters

  • Applicability of Companies (Auditor's Report) Order, 2020 (CARO 2020) not from FY 2019-20: CARO 2020 was applicable for financial year 2019-20 onwards, however, this has been relaxed and has been made applicable from financial year 2020-21

  • Extension of time period for filing declaration of commencement of business by newly incorporated companies to 1 year from the current 180 days

  • Every company is required to mandatorily have a resident director, i.e., a director who stays in India for at least 180 days in a financial year (or proportionate no. of days in case of a newly incorporated company). This requirement has been relaxed.


#Company #Incorporation #MCA

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