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News from the desk of Ministry of Corporate Affairs (MCA)

May 05, 2021

On account of difficulties faced by the stakeholders due to resurgence of COVID-19, MCA has provided some relaxations in the compliances required to be undertaken under the provisions of Companies Act, 2013 and LLP Act, 2008 vide its General Circular No. 06/2021, 07/2021 and 08/2021 dated 3rd May, 2021.

The detail of these relaxations are discussed as under:

1- Relaxation on levy of additional fee on filing of certain forms with the office of Registrar of Companies under the provisions of the Companies Act, 2013 and LLP Act, 2008:

MCA has allowed filing of various forms which were due for filing during the period commencing from 1st April 2021 to 31st May, 2021 without levy of any additional fee till 31st day of July, 2021. The above said relaxation scheme do not cover e-form CHG-1, e-form CHG-4 and e-form CHG-9.

The complete text of the Circular may be viewed at below link:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo6_03052021.pdf

 

2-Relaxation of time on filing of forms related to creation or modification of charges with the office of Registrar of Companies under the provisions of the Companies Act, 2013:

In terms of the provisions of Section 77 of Companies Act, 2013 e-form CHG-1 and e-form CHG-9 relating to Creation and Modification of Charges are required to be filed within a period of 120 days from date of creation or modification, as the case may be.

The following creation or modification of charges are eligible under this scheme of relaxation:

A): If the date of creation or modification of charge is before 1st April, 2021.

If date of creation or modification of charge is before 1st April, 2021, but the timeline for filing of such form had not expired under Section 77 of the Companies Act, 2013 (i.e. 120 days) as on 1st April, 2021

Relaxation in timeline:
  • The period beginning from 1st April, 2021 and ending on 31st May, 2021 shall not be reckoned for the purpose of filing of form u/s 77 & 78 of the Companies Act, 2013.
  • In case form is not filed till 31st May, 2021, the first day after 31st March, 2021 shall be 1st June, 2021.
 Applicable fee:
Sr. No.ParticularsCriteria of Applicable fee
1.If e-form CHG-1 or CHG-9 is filed on or before 31st May, 2021Fee payable as on 31st March would be payable
2.If e-form CHG-1 or CHG-9 is filed after 31st May, 2021Fee shall be charged taking into account number of days commencing from 1st June, 2021 till actual date of filing of e-form CHG-1 or CHG-9.
 

B) If the date of creation or modification of charge falls between 1st April, 2021 to 31st May, 2021 (both dates inclusive).

Relaxation in timeline:

  • The period beginning from 1st April, 2021 and ending on 31st May, 2021 shall not be reckoned for the purpose of filing of form u/s 77 & 78 of the Companies Act, 2013.
  • In case form is not filed till May 31, 2021 then, June 01 shall be first day to count 120 days u/s 77 & 78 of the Companies Act, 2013.
Applicable fee:
Sr. No.ParticularsCriteria of Applicable fee
1.If e-form CHG-1 or CHG-9 is filed before 31st May, 2021Normal Fee would be payable i.e. without any additional fee
2.If e-form CHG-1 or CHG-9 is filed after 31st May, 2021Fee shall be charged taking into account number of days commencing from 1st June, 2021 till actual date of filing of e-form CHG-1 or CHG-9.
 

The above said relaxations are not applicable to the following cases:

  1. The e-forms CHG-1 and CHG-9 have already before filed before 3rd May, 2021;
  2. The timeline for filing the form under Section 77 and 78 of the Companies Act, 2013 i.e. 120 days has already expired prior to 1st April, 2021; and
  3. The additional timeline provided as aforesaid for filing of e-form CHG-1 and e-form CHG-9 expires; and
  4. Filing of e-form CHG-4 for satisfaction of charges.
 

The complete text of the Circular may be viewed at below link:

http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo7_03052021.pdf

 

3) MCA has extended the gap between two successive board meetings:

In terms of Section 173 of the Companies Act, 2013, there shall not be a gap of more than 120 days between the two successive board meetings. The said period of 120 days has been extended to 180 days for the 1st quarter (i.e. 1st April to 30th June 2021) and 2nd quarter (i.e. 1st July to 30th September, 2021) of financial year 2021-22.

The complete text of the Circular may be viewed at below link: http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo8_03052021.pdf 

Last updated: 05/05/2021

Article contributed by:

Luv Malhotra

Associate Director- Corporate Secretarial

MBG Corporate Services

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