The much-awaited relaxation of regulatory compliances under the Companies Act, 2013 (hereinafter “the Act”) have been introduced by the Ministry of Corporate Affairs (hereinafter “the MCA”). Please see below the detailed analysis of relaxations introduced by the MCA on regulatory compliances applicable under the Act:
As per the Act, it is mandatory for the Board of all companies to hold Board meeting in every quarter of a calendar year with a minimum gap of 120 days. As per the relaxation provided by the MCA, the period of 120 days has been extended to 180 days.
As per the Act, every company shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the financial year. The MCA has relaxed this mandatory requirement of having one resident director on the Board of the Indian company.
The MCA has relaxed the period of procuring certificate of commencement of business from 6 months to 12 months from the date of incorporation of new entity.
The MCA has implemented a moratorium period from April 1, 2020 to September 30, 2020 where no additional fees shall be charged for late filing in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date.
As per the Act, every Company having outstanding deposits shall deposit atleast 20% of the amount of its deposits maturing during the following financial year, on or before 30th April of each year and such amount shall be kept in a separate bank account to be called deposit repayment reserve account.
For any queries, please feel free to reach us at [email protected]