Special measures under the Companies Act 2013 and LLP Act 2008 In view of COVID-18 outbreak- Extension –reg.

Last updated: 23 October 2020

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The Ministry of Corporate Affairs has issued a clarification regarding special measures for companies and LLPs in light of the COVID-19 outbreak. Non-compliance with the requirement for at least one director to reside in India for a minimum of 182 days during the financial year 2020-2021 will not be treated as a violation. This extension is a continuation of previous measures announced in March 2020.

General Circular No. 36/2020

File No.2/01/ 2020-CL-V
Government of India
Ministry of Corporate Affairs

5^thFloor, ‘A’ Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi-110001.

Dated: 20^th October, 2020

The DGCoA,

All Regional Directors,

All Registrar of Companies, All Stakeholders.

Subject: Special Measures under the Companies Act, 2013 and Limited Liability Partnership Act, 2008 in view of COVID- 19 outbreak — Extension — reg.

Sir/Madam,

In continuation to General Circular No. 11/2020 dated 24^th March 2020, keeping in view the requests received from various stakeholders seeking relaxation from the residency requirement of 182 days in a year and after due examination, it is hereby clarified that non-compliance of minimum residency in India for a period of at least 182 days in a year, by at least one director in every company, under section 149 of the Companies Act, 2013 shall not be treated as non-compliance for the financial year 2020-2021 also.

2. This issues with the approval of the competent authority.

Yours faithfully,

(KMS Narayanan)
Assistant Director (Policy)

Copy forwarded for information to:-

1. e-governance section and web contents officer to place the circular on MCA

2. File No.7/26/2020-CL-I and 3. Guard file.

FAQ :

The notification clarifies special measures under the Companies Act 2013 and LLP Act 2008 concerning the residency requirement for directors due to the COVID-19 outbreak.

The requirement for at least one director in every company to reside in India for a minimum of 182 days in a financial year has been extended.

This extension applies to the financial year 2020-2021.

The clarification pertains to section 149 of the Companies Act 2013.

This is a continuation of measures, following up on General Circular No. 11/2020 dated 24th March 2020.

Guest

Notification No : General Circular No. 36/2020
Published in Corporate Law
Source : http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.36_20102020.pdf

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