Incorporation of companies up 20% in FY21 despite pandemic: MCA

Topics MCA | Economic recovery | Companies

Representational image

The number of new companies formed in the current financial year rose despite the pandemic as data from the Ministry of Corporate Affairs (MCA) shows that incorporation of companies increased by 20.56 per cent in FY 2020-21 as of December.

A total of over 1.13 lakh companies were incorporated during April 2020 to December 2020, against 93,754 companies during the same period of the last financial year, said the Minister of State for Finance and Corporate Affairs Anurag Thakur in a written reply to the Rajya Sabha.

Further, outlining the steps taken by the government to help and support the companies incorporated he said that the "Companies Fresh Start Scheme, 2020" was launched to make a fresh start for companies to be a fully compliant company by allowing them to file belated documents in MCA-21 Registry without any additional fees from April 1 to December 31, 2020.

The said scheme has also given immunity from prosecutions and proceedings for imposition of penalty which might arise on account of such delayed filing of documents.

"In the wake of Covid-19 and to provide relief to law abiding companies a scheme was launched for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 during the period from 01st March to 31st December, 2020," the minister said.

Among other measures he noted that the MCA has announced a Condonation of Delay Scheme for Companies restored by NCLT between December 1, 2020 and December 31, 2020 under section 252 of the Companies Act, 2013. The scheme provides to condone delay in filing forms with the registrar, and spares payment of additional fees.

This scheme will be in operation from February 1, 2021 and will be available for filing of any overdue e-forms by such companies till March 31, 2021.

--IANS

rrb/sn/rt


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel