Covid Compliance For Companies and LLP

All the Companies and LLPs to submit ‘Covid-19 readiness’ form with MCA

MCA rolled out new web based Form COVID-19 on March 23 known as

CAR 2020 (Company Affirmation of Readiness towards COVID 19)

The MCA circular is nothing but a disaster management step from the Ministry. The Ministry of Corporate Affairs (MCA) come up with a web-based form for companies and limited liability partnerships (LLPs) to confirm their readiness to deal with the Covid-19 threat. The web form — to be named CAR (Company Affirmation of Readiness towards Covid-19) — will have to be filed by the authorised signatory of companies and LLPs on March 23.All the Companies/LLPs will be required to report compliance using the CAR.

• As , The companies and LLPs are major employers, especially in urban areas, their cooperation and participation are essential to fully implement social distancing as a means to contain the spread, morbidity and mortality due to the disease.
• All companies are “expected and strongly advised” to put in place an immediate plan to implement a work from home policy as a temporary measure till March 31, after which the position will be reviewed by the appropriate authorities per the evolving situation.
• “In order to deal with this public health situation, the corporate sector would be required to play a key role in implementing the strategic policy decision of social distancing, which is most crucial for reducing the rate and extent of the disease transmission at community level,”
• Already, the MCA has relaxed the rules for board meetings and dispensed with the necessity of holding physical meetings on matters relating to approval of financial statements, board report, restructuring etc up to June 30.
• It is also now examining other relaxations under the Companies Act, 2013, which may be necessitated on account of Covid-19.

FAQ:

1. What is COVID-19 Form of MCA?

It is a web-based form for companies and limited liability partnerships (LLPs) to confirm their readiness to deal with the Covid-19 threat. The web form — to be named CAR (Company Affirmation of Readiness towards Covid-19) — will have to be filed by the authorised signatory of companies and LLPs on March 23.

2. What is the purpose of MCA form COVID-19?

It is a simple step by the Ministry towards sensitisation of the corporate sector, towards fulfilling an urgent social and human obligation and their preparedness on this disaster and for the health and safety of their employees.

3. Why MCA form COVID-19 was made applicable on Companies and LLP?

As , The companies and LLPs are major employers, their cooperation and participation are essential to fully implement social distancing as a means to contain the spread, morbidity and mortality due to the disease.

4. What are the steps being suggested through this Advisory?

Companies and LLPs are being advised to accept the work from home’ Policy in their companies. And put in place an immediate plan to implement a ‘work from home’ policy as a temporary measure. This is a Confirmation that these companies and lLP are with MCA to deal with this disaster.

5. What is the procedure to file MCA form COVID-19?

The form can be filed only after logging in the MCA portal . Then select to file form COVID-19 form., The Form will be opened, Need to mention the CIN of the Company, And after filling the form, Need to Put the Din of any Director, an OTP will go on the Mobile Number associated with the Din and required to verify the OTP before submitting the form.

6. What is the object of having such a Advisory?

The object of having such a plan is to ensure social distancing as advised by WHO and other public health authorities in the recent outbreak of COVID-19 which is required for preventing the rapid spread and transmission of the disease and to break the chain at community level, so that our country does not touch the Third Stage of this disease,

7. Do we Need to affix any DSC for filing the form COVID-19?

The object of Filling this form doesn’t require payment or Digtal Signature Certificate (DSC). The compliance is for all Indian companies, foreign companies, LLPs, and foreign LLPs and any one of the current Authorized Signatories of the Company or LLP can submit the form online with only OTP verification.

8. What is the last date for Complying this “work from home policy “?

Right now the Limit is Till 31^st March, 2020. The same shall be reviewed by the appropriate authorities based on the evolving situation and can be extended further if required.

9. Whether Form COVID-19 is applicable on all companies?

The Form is applicable on Companies and LLP Registered anywhere or anytime in india. Even new companies are also required to file the form even if they have not started the Business. The Companies having No employees, permanent employees, Contractual Employees, etc,  The Form is required to file with selecting the option of that you have taken necessary steps.

10. Whether the companies and LLPs will have to frame and submit any written ‘work from home’ policy?

The Advisory suggests to prepare a plan to implement the “work from home policy” for the employees. In our view, the same is not required to be a written or formal policy. The word “policy” here should mean the steps to be taken by the organisation to provide the facility of working from home to its employees and the manner/ procedure to be followed to ensure the same. If there is a policy, typically, the policy is applied to all employees covered by it without discrimination. Further, the process and manner to be followed can be different from organisation to organisation. Accordingly, in case of companies, the decision may be taken at management level, while in case of others, by the head of the organisation.

11. Whether there should be some more compliance adhered attached to file this form COVID-19, Like Board Meeting, any authorization etc?

The Form is expected to be filed on urgent basis, therefore, please do not wait for any formal processes or board resolutions or authorization, Any person in charge can take such steps.

12. Is There any penalty for not filing the Form COVID-19 with MCA?

The form is not onerous and only intends to spread awareness to fight Covid-19. It is to inform the companies about the impact of the corona virus, and diligent measures have been taken to not make hard obligation such as director’s signature, etc. If companies declare social distancing, work from home and proper sanitisation measures, there should not be any worry. So, No penalty is there, but to support the Government, it must be filed as an contribution for this cause.