Opening a Company in India in 2020
The Larger Indian Economy Picture
The economy of the whole world has been going down amidst this entire global outbreak due to the Coronavirus, vis-a-vis, COVID-19. This economic breakdown due to pandemic lockdown in the world has created havoc in India as well as in the whole world. The Ministry of Corporate Affairs recently announced a scheme to promote people for opening a company in India, this scheme is called the Companies Fresh Start Scheme 2020. The aim of this scheme is to provide aid and assistance to the companies that are unable to repay their debts, the facility of filing forms without any additional fees. Under this scheme, the facility to get immunity against prosecution and penalties is also available to people having existing businesses or the ones looking forward to opening business in India.
As the name suggests, this scheme is strictly aimed at giving a one-time fresh start to the existing businesses that have undergone an economic loss due to this COVID-19 outbreak, this scheme can also be used effectively by the people that are planning for opening a branch office in India. Due to this scheme, the company that makes use of this scheme will get the advantage of not paying the penalty on their debts and this can be done by filing the documents with the Registrar of the Companies.
If you don’t know what a defaulting company is, don’t worry, we will put it down in the simplest words – a defaulting company is the one that has made the default filing of the documents, statements, and returns. These filings also include the annual statutory documents.
Let us see the applicability of the scheme:
The scheme was slated to start on the 1st of April and will continue until the 30th of September. This scheme is not only beneficial for people that are looking forward to opening a company in India, but also to the inactive companies to get the dormant company status for their company by simply paying the normal charges without any additional penalties on it.
What will be the effect of this Fresh Start Scheme 2020?
The benefits that a company opening business in India or existing in India will get are:
- The company won’t have to pay any additional fees on any returns by the company.
- ROC will withdraw the prosecutions and the adjunctions regarding these forms.
- The company will withdraw the appeal against any prosecutions towards them
- Authorities will certify them with an immunity certificate.
We hope that you got the basic idea of the Fresh Start Scheme 2020 by the Government. At DBPL we help people in all kinds of services related to opening a branch or liaison office in India, and establishing a business in India; for more information contact us today!