RECENT AMENDMENTS UNDER COMPANIES ACT, 2013
a. In case of Companies – New incorporation/ Name change/ Resubmission of forms: In terms of the Companies Act, 2013 (Act), names are reserved for 20 days for new company incorporation. Accordingly, SPICE+ Part B is required to be filed within this period of 20 days.
The Ministry of Corporate Affairs (MCA) has extended the period of validity of reserved names expiring between 15th March 2020 to 30th June 2020 by 20 days beyond 30th June 2020.
Further, the names reserved in case of change of name of the company are valid for a period of 60 days and thus the Form INC-24 has to be filed within 60 days of name reservation.
MCA has extended the period of validity of reserved names expiring between 15th March 2020 to 30th June 2020 by 60 days beyond 30th June 2020.
MCA has also extended the Resubmission (RSUB) validity for companies. The SRNs which have their last date of RSUB falling between 15th March 2020 to 30th June 2020, an additional 15 days beyond June 30, 2020, is now allowed.
b. In the case of LLP- – New incorporation/ Name change/ Resubmission of forms:
In terms of LLP Act, 2008, the names reserved are valid till 90 days and therefore new LLP incorporation or change of name needs to be filed within the said period of 90 days.
MCA has extended the period of validity of names expiring any day between 15th March 2020 to 30th June 2020 by 20 days beyond 30th June 2020.
Further, the MCA has extended the RSUB validity for LLPs. The SRNs which have their last date falling between 15th March 2020 to 30th June 2020, a period of 15 days would be allowed beyond 30th June 2020 for resubmission.
The complete text of the circular can be viewed at below link:
http://www.mca.gov.in/Ministry/pdf/Extension_22042020.pdf
B. GENERAL CIRCULAR NO. 24/2020 DATED JUNE 19, 2020 – MCA EXTENDED TIME FOR DEPOSIT OF REPAYMENT RESERVE AND DEBENTURE REDEMPTION RESERVEa. Deposit Repayment Reserve:
In terms of the provisions of Section 73(2)(c) of the Act, a Company which accepts deposits from its members, needs to deposit on or before the 30th day of April each year, an amount equivalent to twenty percent (20%) or more of the number of its deposits maturing during the following financial year and kept in a scheduled bank in a separate bank account to be called deposit repayment reserve account.
The said date of 30th April 2020 which was earlier extended till 30th June 2020 vide General Circular no. 11/2020 dated 24th March 2020, has now been further extended till 30th September 2020 for the purposes of deposit in deposit repayment reserve account equivalent to 20% of the number of its deposits maturing during the financial year 2020-21.
b. Debenture Redemption Reserve:
In terms of Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014, every Company which had issued its Debentures needs to create a Debenture Redemption Reserve (for the purpose redemption of Debentures) and on or before the 30th day of April in each year, invest or deposit, as the case may be, a sum which shall be at least fifteen percent (15%), of the number of its Debentures maturing during the year ending on the 31st March of the next year, in any one or more prescribed methods.
The said date of 30th April 2020 which was earlier extended till June 30, 2020, vide General Circular no. 11/2020 dated 24th March 2020, has now been further extended till 30th September 2020 for the purpose of deposit or invest an amount equivalent to 15% of Debentures which are going to mature during the financial year 2020-21.
The complete text of the circular can be viewed at below link:
http://www.mca.gov.in/Ministry/pdf/Circular24_20062020.pdf
C. SCHEME FOR RELAXATION OF TIME FOR FILING FORMS FOR CREATION AND MODIFICATION OF CHARGE MCA has vided its General Circular no. 23/2020 dated 17th June 2020 has come up with a scheme granting relaxation of time for filing forms related to creation or modification of charges under the Act. This was much awaited as a waiver of additional fee on filing of forms related to creation or modification of charges in prescribed form CHG-1 and CHG-9, respectively, under the Act was not covered under the earlier announced/ notified Companies Fresh Start Scheme, 2020 granting a waiver of additional fee on filing of forms till 30th September 2020. Applicability of the scheme:- Filing of Form CHG-1 and Form CHG-9 related to creation or modification of charges where the timeline for filing such forms had not expired under section 77 of the Act i.e. 120 days has not expired as on 01st day of March 2020;
- Due date of filing of Form CHG-1 and Form CHG-9 falls between 01st March 2020 to 30th September 2020 (both days inclusive).
- Form CHG-1 and CHG-9 which had already been filed before the date of issue of this Circular;
- The timeline of 120 days for filing of Form CHG-1 and Form CHG-9 has already expired under section 77 or section 78 of the Act prior to 01st March 2020; and
- Filing of Form CHG-4 relating to the satisfaction of Charges.
Tag: Companies Act